Pensioners face surge in winter energy bills

The Chancellor’s decision to cancel the Winter Fuel Payment for most pensioners will leave millions of older households facing an inflation-busting energy bills increase this winter.

A combination of the end of the Winter Fuel Payment and a likely increase in energy prices from 1 October will mean that the average older household will see their energy bills increase by up to 15% in real terms, compared with winter 2023/24. [1]

Charities have written to Rachel Reeves MP this week to set out the challenge faced by pensioners and ask the Government to reconsider its plans.

The letter, signed by over 50 organisations, says:

“The decision to remove the Payment to all but a small minority of pensioners will see millions more older people face the prospect of spending this winter in cold damp homes.

“This has the potential to create a public health emergency. The impact of living in cold damp homes is particularly harsh on those older people with a disability, a long term health condition or with poor mental health.

“It results in these people turning to an NHS that is already under stress and in some cases, can result in additional winter deaths.”

Simon Francis, coordinator of the End Fuel Poverty Coalition, commented:

“We have publicly commended the Government in taking some of the long term measures to tackle high energy bills, such as the drive for more renewable energy and a Warm Homes Plan. But these solutions will take time to bring down bills.

“In the meantime, households of all ages will need more support from the Government to stay warm this winter, not less.

“We urge the Chancellor to rapidly consult with consumer groups to broaden the targeting of the Winter Fuel Payment, to introduce support to end energy debt, expand the Warm Home Discount and extend the Household Support Fund.”

The letter ends by warning ministers that:

“Unless we see urgent action from the Government to keep people warm this winter, one of the first actions of the new Government will be to condemn more vulnerable households to fuel poverty.”

Members of the public have also been asked to write to their MPs through the Warm This Winter campaign or the Independent Age website urging the Government to think again. Hundreds of thousands of people have also signed petitions on the Age UK and 38 Degrees websites. [2]

National Pensioners Convention General Secretary Jan Shortt commented:
“I seriously believe the Chancellor has underestimated the harm her decision will cause to older people still struggling with energy costs and facing higher rates in October.  It is absolutely shocking that the new Labour government should treat older, vulnerable people in this manner.  The triple lock alone will not enable them to keep up with energy bills.”

Jonathan Bean from Fuel Poverty Action added:

“Making heating even more unaffordable for those trying to survive on basic pensions is a cruel and reckless move that will cause widespread suffering, and increased NHS admissions this winter. Instead we need an energy pricing system that guarantees everyone the essential energy they need to stay warm and safe.”

Jacky Peacock from Fairer Housing said:

“While it makes sense to withdraw the payment for wealthy pensioners, the bar has been set too low.  We’re asking the Chancellor to re-think this move to allow pensioners on modest incomes to enjoy their home in comfort this winter without the worry of how they will be able to afford it.”

Jenna Fansa from Hackney Foodbank commented:

“We urge the government to widen the eligibility criteria for Winter Fuel Payments. Last year we saw a 95% increase in the number of older people coming to our food bank due in part to rising food and fuel costs. For many, it’s a choice between having the heating on or going hungry. Restricting the criteria only to those on certain benefits will cause more anxiety for many pensioners and will inevitably bring more pressures for food banks like ours.”

Morgan Vine, Head of Policy and Influencing at Independent Age, said: 

“It is not an overstatement to warn that, in its current form, this sudden change puts lives at risk. Pension Credit has an unacceptably low take-up at just 63%. 

“This means up to a staggering 1.2 million older people who are eligible could be missing out on money they need to turn their heating on. On top of this, every day we hear from older people who just miss out on Pension Credit but still struggle to pay their energy bills. They could now be heading into winter without this important lifeline. 

“We urge the Chancellor to not make this change now, and instead ensure every older person has an adequate income to avoid financial hardship before removing the Winter Fuel Payment.”

Ken Butler, Welfare Rights and Policy Officer at Disability Rights UK said:

 “The removal of winter fuel payment from millions of pensioners, many of them Disabled people, is shameful. Many pensioners live on the margins of poverty and need more heat and energy to manage their health conditions and charge their health-related equipment.

“In addition, due to a DWP backlog assessing pension credit claims, award decisions are taking several months to be made. Because of this, many eligible pensioners could miss out on fuel payments this winter.”

ENDS

For a full copy of the letter visit: https://www.endfuelpoverty.org.uk/letter-to-the-chancellor/

[1] Average energy bills in winter 2023/24 were GBP1,834 – but for households receiving the full GBP300 Winter Fuel Payment this would have been GBP1,534.

Average energy bills for winter 2024/25 are forecast to be GBP1,762 according to analysts Columbia Threadneedle (accessed 22 July 2024). This means the average household who received the full Winter Fuel Payment in 2023/24 will now pay 14.68% more for energy in winter 2024/25.

[2] Age UK petition stands at over 138,000 and the 38 Degrees petition stands at over 105,000 as at 1500 on 2 August 2024

Older people’s ‘parliament’ debates energy crisis

The 2023 National Pensioners’ Annual Convention has heard a stark warning that millions of vulnerable people will be unable to stay warm this winter.

Last year, over 9m adults lived in Dickensian conditions unable to keep their homes warm and damp free. The figures for the Warm This Winter campaign, also revealed that over 1m of these adults were older and those with disabilities were especially vulnerable to living in cold damp conditions.

From 1 July energy bills will be roughly the same as last winter and while some reduction in the Ofgem price cap may come through before winter 2023/24, the Convention heard that this would still mean energy bills are double what they were in 2021/22.

New figures from Age UK and the ONS reveal that almost half (45%, 11.3 million) of people aged 50+ in Great Britain are currently finding it difficult to afford their energy bills.

Addressing the meeting in Blackpool, Simon Francis, coordinator of the End Fuel Poverty Coalition, said:

“At a recent meeting with pensioners, one told me that the only change between their living conditions in the 1940s and those of today was that they had an inside toilet now. They said that the poverty they experienced as a child is what they are now experiencing again.

“Food banks, sanitary banks, pet food banks and massive government support for energy bills are the only things keeping people from destitution.

“We cannot allow this to continue any more and the Government needs to act to keep people warm this winter and every winter. We can only do this through debt relief and financial support now alongside a rapid programme of energy efficiency improvements and speeding up the generation of cheap renewable energy and moving us away from the fossil fuel profiteers of the past.”

Delegates representing the National Pensioners Convention’s 1.1 million UK members have met at The Imperial Hotel in Blackpool to discuss why millions of today’s – and tomorrow’s – older people face poverty, hardship and the loss of vital services.

NPC General Secretary Jan Shortt said: 

“The last few years have been particularly tough on our oldest and most vulnerable. 

“Hundreds of thousands died in the pandemic, and millions now struggle to make ends meet as prices rocket, while the real value of pensions drop. Older people are having to choose between eating and heating, while the essential services they rely upon, from health and care to housing and transport, continue to decline or disappear completely. 

“This isn’t just a problem for older people now, it is a major issue for today’s workers who wonder if they’ll ever be able to afford to retire. Especially if the government pushes back the retirement age to 68 and threatens to scrap the Triple Lock that should guarantee state pension cost of living increases.” 

Other Convention speakers will include Robert Palmer from Tax Justice, John Lister from Keep Our NHS Public, Lord Davies of Brixton on the future of the state pension, and Tom Lowe from the Digital Poverty Alliance on the exclusion of older people from our increasingly online world. Leaders from national organisations like Age UK, Independent Age, Ageing Better, as well as the TUC, Unite and UNISON will also be attending.

Hypothermia cases in England surge during energy bills crisis

The Daily Mirror has today reported a huge rise in the number of hypothermia cases in England.

The statistics published in the Mirror today show that there was an 82% increase in hypothermia cases in December 2022, compared with December 2021 and a 36% increase in hypothermia cases comparing 2022 to 2021 as a whole.

The figures come following the inquest of the death of a 87-year-old woman who died in December 2022 after reportedly refusing to turn on her heating for fear of rising energy costs. 

A spokesperson for the End Fuel Poverty Coalition commented:

“From Awaab Ishak to Barbara Bolton, the deadly impact of living in cold damp homes has been made painfully clear in recent months.

“The energy bills crisis is now a public health crisis and without additional support for those in fuel poverty we will continue to see thousands of excess winter deaths caused by people living in Dickensian conditions.

“The Government must step in to speed up roll out of insulation measures and reform Britain’s broken energy system this summer. Without this, hypothermia cases will soar again next winter.”

Eight million older people worried about heating their home

More than three in five over-65s (62 per cent) – equivalent to 7.8 million older people – are worried about heating their homes compared to 43 per cent just six weeks ago, according to new research for Age UK.

Ahead of the widely anticipated price cap announcement from Ofgem next month, the new poll shows a sharp rise in concern over energy bills.

Over half (52 per cent) of over-65s – 6.5 million older people – are worried about their energy bills now compared to just under a third (31 per cent) last month, and nearly half (45 per cent) – 5.6 million over-65s – are worried about having to reduce energy use due to financial concerns compared to under a third (30 per cent) in December.

Additionally, 82 per cent – equivalent to over 10 million over-65s – think the Government should step in to help poorer older people pay their energy bills.

The high levels of concern are reflected in a surge of support for the Charity this month, with over 50,000 people adding their names to a letter to the Prime Minister in the past week, urging him to act now to protect older people from unaffordable energy bills.

The Charity is warning that many older people are already feeling the impact of the rising cost of living, with basic household bills fast becoming unaffordable for many pensioners living on a low fixed income – many of whom have few, if any, savings to fall back on.

Age UK has been flooded with stories from thousands of older people who are already struggling and cutting back on heating, food and other essentials. People such as Carol who is 78 and says, “I simply cannot cope with even higher bills”, or Denise who says, “This is so scary.”

Financial support for older people during the colder months has remained broadly unchanged for years and is nowhere near enough to match the scale of the current problem.

In its letter to the Government, Age UK echoed concerns of other members of the Coalition and urged Ministers to announce a financial package to support vulnerable older people through this crisis.

Caroline Abrahams, Charity Director at Age UK, said:

The number of older people who are worried about being able to heat their homes is staggering and should be a source of shame for this Government. Millions of older people across the UK are absolutely dreading the imminent price cap announcement and urgently need reassurance that help is on its way so they can keep their heating on. This is a national crisis which needs a swift and decisive response from Ministers.

Every single day we are hearing heart-breaking stories from desperate older people who are being forced to choose between heating and eating. This isn’t a looming crisis, it’s already upon us – and while the Government is dithering, millions of older people are suffering and putting their health at risk because they can’t afford to keep warm. It is an absolute scandal and one that requires urgent government action.

Energy price rises on the scale we are now seeing are unprecedented and the Government’s response must be equal to the threat they pose to older people, many of whom are vulnerable and struggling to afford exorbitant bills on a meagre state pension.

Anyone who is interested in adding their name to the Charity’s open letter to the Prime Minister can do so by visiting: bit.ly/ageuk-energy. Sources for the press release are available from the Age UK website as well.

Cost of cold highlighted in new campaign

An estimated 150,000 older households are likely to be plunged into fuel poverty this winter because of soaring energy prices, according to new analysis by Age UK.

Launching its new The Cost of Cold campaign, the charity issued a stark warning that the number of fuel poor older households could reach over 1.1 million by the spring unless the Government takes urgent action.

Rising energy prices and living costs will lead to some of the poorest pensioners rationing their heating this winter in order to afford higher energy bills.

Age UK believes that rising inflation and escalating prices are now threatening the standard of living of many pensioners on low incomes, creating uncertainty and anxiety as winter begins to bite.  Part of the problem is that many older people are living in hard to heat, older homes and, as a result, often need use a lot of energy just to stay warm.

The cold can be dangerous for older people, especially those with pre-existing health conditions.  Older people tend to feel the cold more than younger people, as it is harder for them to regulate and maintain body temperatures. Low temperatures can increase the risk of heart attacks and strokes in an older person, exacerbate lung conditions and worsen arthritis.

Living in a cold home can also undermine an older person’s mental health, contributing to anxiety, depression and loneliness.

Extra support such as Cold Weather Payments and the Warm Home Discount Scheme are vital tools in the fuel poverty armoury for those on a low income, yet they fail to reach many of those who need them the most because they are not claiming Pension Credit. This crucial benefit opens the door to these and many other benefits, but nearly a million (920,000) pensioner households are missing out on Pension Credit payments worth up to £1.6 billion every year – that’s an average of £32 a week.

Age UK, which is a member of the End Fuel Poverty Coalition, is campaigning for the Government to:  

  • Provide a one-off £50 payment to all those eligible for Cold Weather Payments and expedite existing payments so they arrive no later than seven days after a period of cold weather. 
  • Double the Household Support Fund to £1billion to help safeguard all those on low incomes this winter.  
  • Take urgent action to get Pension Credit – a vital benefit and passport to a package of extra financial support – into the pockets of all those who are eligible. 
  • Ensure the energy price cap is enshrined in law in the shorter term, and then move to re-introduce a social tariff into the energy market to offer protection against high energy costs in the medium term. 

Peter, aged 75, told Age UK:

It’s a simple choice, heat or eat. I already confine myself to one room and stay in bed as long as possible. If I cut down any further there won’t be any point in living.

Geraldine, aged 77, said:

I have arthritis which is worse when it is cold. I will have to keep my heating low now. Already I wear gloves on my hands and a heat pack inside my leggings to help my back.

Caroline Abrahams, Charity Director at Age UK, said:

There’s no doubt that media reports about rising energy bills are filling pensioners on low fixed incomes with absolute dread. More than twenty-five thousand people have told us how worried they are, and it is clear that as things stand, some fully expect to have to choose between cutting down on food or turning down their heating, once the cold weather sets in. Doing either is a potential risk to their health, especially if they are living with serious underlying health conditions like heart disease or COPD.

Age UK is urging older people to call its free national advice line BEFORE turning the heating off or down, to check they are receiving the full package of financial support available to them, including key benefits such as Pension Credit and Attendance Allowance.

In addition, energy suppliers have a duty to offer support if people are struggling with bills or debt, so the Charity is urging people to contact their supplier directly to ask about available support including an affordable repayment plan. 

Age UK’s advice line is open every day (365 days a year) from 8am to 7pm. Information and advice is also available on www.ageuk.org.uk or via a local Age UK.