Deciding between whether to wash with cold water or eat dinner is not a choice anyone wants to be presented with. This report shares the often-hidden experiences of how pensioners facing financial hardship are being impacted by increasingly high household costs, across water, energy, broadband, and Council Tax. Yet many know nothing about the financial support they could be entitled to from their utility companies or local authority, and their health and lives are suffering as a result. At Independent Age, we think this is unacceptable. We have developed policy recommendations which we hope the Government and other stakeholders will act on to reduce the pressure on pensioners on a low income.
What needs to change?
Costs: Broadband
In today’s society, access to the internet has become an essential part of everyday life. It enables people to stay connected with loved ones, access essential services and carry out day-to-day tasks including paying bills, or shopping.
However, a broadband connection at home is not something that every older person on a low income has access to and the option to use. For some, the cost involved in getting online is too much, while for others they are at risk of having to cancel their current services because they can no longer afford them.
To support customers on a low income most major broadband providers offer social tariffs, but details of these (like cost and speed) vary. Our research shows that awareness that social tariffs exist is very low among pensioners in financial hardship and that they are still unaffordable for some on the lowest income.
We also heard from older people on low incomes who are just above the eligibility threshold for benefits and therefore not eligible for social tariffs, yet struggle with their broadband costs.
- 48% of people aged 65 and over on a low income in Great Britain have struggled to keep up with their broadband bills over the past 6 months
- 9% have cancelled their internet or phone services over the winter to save money
- 64% of respondents to our survey who would be eligible because they are on a qualifying benefit (Pension Credit) are not currently on a broadband social tariff
- The average price of a social tariff (£17) is still unaffordable for 10% of our survey respondents
Costs: Water
Affordable access to water is crucial for everyone to live healthily. Yet, many pensioners in financial hardship told us they were struggling to keep up with their water bills and were faced with impossible choices and sacrifices to reduce their water costs.
While companies offer schemes to support people struggling with their water costs (like WaterSure), and for those on low income (like social tariffs), eligibility criteria and levels of discount vary depending on companies. These differences create a confusing postcode lottery of support for consumers (in England and Wales; the company providing water and sewage services is determined by where people live).
Our research found that awareness of available support offered by water companies was exceptionally low. We also heard from those who were aware of these schemes, but were unsure how they worked, leading to confusion and suspicion, that ultimately led to more people missing out.
- 24% of older people on a low income in England and 26% in Wales said they were keeping up with their water bills but struggled from time to time
- 17% in England and 11% in Wales said they were keeping up with their water bills, but it was a constant struggle
- 67% of our survey respondents were unaware that their water company offered any form of support.
Costs: Council Tax
Whether someone rents or own their home, they are responsible for paying their Council Tax. But for older people on a low income, this is yet another cost many can barely afford.
To help people manage these costs, local authorities administer Council Tax Reduction schemes designed to lower the amount of Council Tax someone on a low income pays. If someone receives Guarantee Pension Credit, for example, they are entitled to the maximum Council Tax Reduction available in their local area, which can equate to 100%.
Our research found that Council Tax Reduction can be a vital form of support for the people who receive it. However, like for other household costs, awareness of the available support is low. We heard how the complexity of the Council tax system can make it difficult to navigate, creating confusion about how the scheme works, and who is eligible. Ultimately, this can lead to eligible people missing out on available support.
- 33% of people aged 65 and over in financial hardship in Great Britain are worried they will not be able to pay for their Council Tax in the next six months
- 40% struggled to keep up with their Council Tax over the last six months
- 18% of our survey respondents on a low income did not know about Council Tax Reduction before taking the survey and of these, 53% were unsure if they would be eligible for this support.
Costs: Energy
With energy costs still considerably higher than they have been in recent years, we heard how many older people have no other option but to try and manage, for example, by wearing extra clothes, going to bed early, spending time in public places to keep warm, reducing their use of the cooker, and keeping the lights off in their homes to save on electricity.
The drastic action people are being forced to take is having a considerable physical and mental impact. Respondents shared how the cutbacks they are being forced to make, or the anxiety they are feeling about high costs, are negatively impacting their health.
Energy companies currently do not offer financial support like social tariffs to those who struggle financially, even though there is a majority support in Great Britain among older people on low incomes for its introduction. If introduced, an energy bills social tariff would reduce the bills of those eligible to a more affordable level.
Through our research, we heard that most people were in favour of social tariffs being paid out of government expenditure, followed by a combination of government expenditure and on-bills levies.
- 59% of people aged 65 and over and on a low household income in Great Britain are having to cut back their spending on heating a ‘great deal’ or a ‘fair amount’.
- 37% said they are having to cut back on non-heating electricity (e.g., lighting, television, appliances).
- Over 85% of older people on a low income in Great Britain support the introduction of an energy bills social tariff.
Key statistics
48% of people aged over 65 years on a low income have struggled to keep up with their broadband bills over the past six months.
52% of those on a low household income were unaware of broadband social tariffs before taking the survey.
17% of older people on a low income in England and 11% in Wales said they were keeping up with their water bills, but it was a constant struggle.
13% said that they had heard about water social tariffs through friends and family.
40% of respondents aged 65+ on a low household income said they had struggled to keep up with their Council Tax bills over the past six months.
52% of people aged 65+ on a low household income said they were worried they will not be able to pay their gas/heating bills.
What is Independent Age calling for?
Building on these findings, Independent Age recommends that:
Have you been affected?
If you have been affected by any of the issues raised around household costs, or struggle to afford your household costs, reach out for help. Call our Helpline on 0800 319 6789 to arrange to talk with one of our expert Advisers. We also have a range of free information online. Our advice and information services are completely free, confidential and impartial.
The experiences of older people facing financial hardship can be so impactful in helping organisations like Independent Age to make change happen at a national level which will benefit everyone struggling. These insights inform our discussions with key decision-makers and help us make our recommendations as powerfully as possible. If you would like to share your story with us, you can email our Campaigns Team, who are here to listen sensitively and without judgement. We won’t ever share your story without your permission or ask you to do anything you’re not comfortable with.
Want to know more?
Our full report looks at challenges faced by older people on low incomes due to rising household costs in water, energy, broadband, and Council Tax. It also explores their perspectives on the assistance provided by both the government and service providers.
You might also be interested in...
> Our campaigning work on household costs
> Our money advice webpages