Save on Gas & Electric Bills

January 13th, 2006

8.9 MILLION1 ELDERLY PEOPLE WILL STRUGGLE TO PAY ENERGY BILLS THIS WINTER

A mere £20 increase in gas and electricity prices will see 4 million1 (28%2) elderly people struggle to pay their energy bills

With highest rise in winter death toll for 5 years3, concerns over the health of the elderly intensifies as 35% have already reduced the amount of heating they use following price rises

Risk of price rises of up to 15%4 in 2006 set to increase ‘fuel poor’ numbers, as poorest 10%5 of the population are already spending 9% of their income on energy bills

A comprehensive study of the over 60s by uSwitch.com, the independent online comparison and switching site, has revealed that an alarming number of elderly people will struggle to keep their homes warm as rising energy bills and a colder than average winter begin to bite. This could see a substantial rise in the three million households6 already living in fuel poverty.

These are stark statistics considering that we are in line for one of the coldest winters in a decade and predictions indicate that further price increases could push the average bill up by another £1167 in the first quarter of 2006.

Gordon Lishman, Age Concern’s Director-General, said: “All older people should be able to heat their homes without being worried about the bills they’re likely to face. Many pensioners live on a low, fixed income and are hit particularly hard by hikes in their fuel bills.

“Energy companies must do everything they can to protect vulnerable groups such as pensioners from price increases. The Government should increase the state pension so that pensioners have enough money to cover basic living costs such as heating their homes.”

Price increases of £1918 in the last two years have contributed to 2.6 million (18%) older people struggling to finance energy bills, with some having to get extra credit to fund this. To compensate for price rises, 23% of over 60’s are trying to find ways to make savings elsewhere. Worryingly, 53% have either reduced the amount of heating they use or are choosing to wrap up warm instead, which could have serious health implications if they do not adequately heat their home.

Ann Robinson, Director of Consumer Policy at uSwitch.com, states; “Low usage energy users are already paying £50 more for their energy than they were at the start of this year. Our research reveals that only a marginal increase in energy bills, either from increased usage or higher prices will have a serious impact on the thousands of vulnerable households who are at risk of falling into fuel poverty.”

“We would urge people to see if they are eligible for the benefits offered by the Government as well as reviewing their energy supplier and opting for a better deal. The average saving to be made can be as high as £1709, which would allow vulnerable consumers to keep warm for longer”.
Fuel Poverty – the facts:
It is estimated that for every 1% rise in fuel prices, 40,000 households are pushed into fuel poverty and there are already 3 million households classified as being affected by this10.
Age Concern has already stated that eight pensioners could die from the cold every hour in the UK this winter and 35% will have to reduce the time they put their heating on overall to mitigate the effects of a cold winter.
Despite government grants and benefits available to help those struggling to pay their energy bills, only 20% of over 60s are taking advantage of these incentives. As many as 1.8 million people do not currently claim their entitlement to council tax benefit 11.
In the winter of 2004/05 there was an estimated 31,60012 more deaths in England and Wales compared to the non-winter period and we fear this number can only rise given the unusually cold temperature predicted for this winter by the Met Office.
uSwitch.com and Age Concern recommend taking a series of simple measures to help ensure a warm and safe winter. Here are our top tips to help you fight the cold:
Prepare your home
Stock up on provisions in case it is too cold to go to the shops
Seal gaps around windows and doors
Insulate the loft to reduce heat loss
Check your heating system is working and serviced once a year
Keep your home at the right temperature
Hang thermometers in the living room and bedroom and keep temperatures between 21 and 24 degrees Centigrade (70 and 75 degrees Fahrenheit).
Claim your rightful benefits and grants
Everyone over 60 should claim the Winter Fuel Payment and there are many other benefits and grants to which you may be entitled.
Call SeniorLine to find out more: 0808 800 6565

Apply for grants and programmes
There are many free products and services designed specifically for older people, such as the British Gas 'Here to HELP' programme. Contact major energy suppliers to find out what they offer.
Dress appropriately
Wear thin layers of clothes rather than one thick layer
Choose clothes made with wool, cotton, or fleecy synthetic materials
Wearing the right clothing to bed is as important as wrapping up outdoors
Stay active
Don’t stay sitting still for long periods
Spread chores through day and alternate between rest and activity
Exercise without taking risks in wet or icy weather
Get a flu jab
Eat well
Eat at least one hot meal a day
Sip hot drinks regularly throughout day and before bedtime
Keep a flask of hot drink by your bed should you wake up feeling cold

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