Energy Crisis Causing Misery

Age UK calls for older people who are struggling to ask for help ahead of the expected cold snap this week.

In a new report released this month, Age UK warns that older people living in a household with an income less than £20,000 per year and not in receipt of means tested benefits, have faced particularly steep challenges with managing through recent times.  New research for the Charity revealed that for these older people, the cost of living crisis is far from over:

• Almost a third (29%) of over 60s in this group report that their home was too cold most or all the time – compared to 21% of all people aged 60+.
• Almost half (49%) of them were worried about the impact of energy bills on their health, 59% reported they are worried about their ability to heat their home and 47% were worried about being able to afford wider essentials like food.
• This group was also much more likely to report having to cut back on food/groceries (34%), transport and vehicle costs (30%), and other household bills (18%) and 40% reported feeling anxious about energy bills.

Age UK’s new report, Cold at Home: How winter cost of living pressures continue to impact older people, highlights its concerns about the ongoing impact on older people who are not receiving support from the benefits system.  Many of these people are likely to be eligible for support but will still be missing out for a whole variety of reasons. Government figures show that an estimated 800,000 pensioners are eligible for Pension Credit but are missing out on this much needed support[i].

More broadly, within the poorest fifth of the population, around 4 in 10 households do not receive means tested benefits[ii] and many people of all ages sit just above the threshold for receiving support, despite still facing significant financial strain. In 2022/23 and 2023/24 not being in receipt of means tested benefits also excluded people from the extra Cost of Living Payments provided by the Government. In total this represented £1,550 of additional support over the two years which would have gone a long way towards addressing the anxiety and financial strain faced by those on lower incomes.

Energy prices have been a key driver of the cost of living crisis.  Age UK’s latest estimates show that even with prices expected to come down slightly this year there will still be 1.9 million older households in the UK living in fuel poverty[iii] across 2024, representing around one in six (16%) of all older households in the UK[iv]. 1.3 million of these are older households in the lowest fifth of equivalised after-tax household income, representing over one-third (36%) of such older households.

With the Spring Budget and the General Election fast approaching, Age UK is calling for all political parties to commit to raising the standards of living for those older people who are most disadvantaged – especially those who are not claiming means tested benefits. Everyone should be able to boost their income in order to meet the higher costs of essential goods and services.

The Charity believes the following policies are necessary in order to give older people financial security and create a functioning energy market for those on lower incomes.  It calls on the next Government to:

• Directly fund a targeted energy deal, or ‘social tariff’, which markedly discounts energy costs for those of all ages at greatest risk from the cold.
• Reintroduce the Household Support Fund[v], ensuring it becomes a longer-term support mechanism targeted at those in greatest need.
• Maintain the State Pension triple lock for the duration of the coming Parliament.
• Increase benefit take up, including Pension Credit, through publicity and changes which mean there is less reliance on individuals navigating complicated systems.
• Ensure benefits are sufficient to cover essential costs for all groups and are increased annually at least in line with rising prices.
• Radically expand and improve national insulation and heating system improvement schemes, with priority for those on lower incomes and with higher heating needs.
• Extend the ban on forced pre-payment meter installations to anyone above State Pension age.
• Create one Priority Services Register[vi] across all utilities to make it easier for people to register for priority support.

Age UK is urging anyone who is struggling to make ends meet and who is not already in receipt of Pension Credit to put in a claim without delay, so they don’t miss out on extra money help this winter.