PENSIONERS could die this winter because massive fuel price hike means they can't afford to keep warm, according to a power watchdog.
The stark warning comes as the M.E.N. reveals how one couple were found shivering in their Salford home after British Gas told them their monthly direct debit would be increased from £23 to a STAGGERING £130.
Age Concern says there has been a big increase in the number of people contacting them struggling to pay their bills and insists emergency measures are needed to protect the most vulnerable. One in three pensioner households is likely to be living in fuel poverty by the end of 2008, according to the charity which believes many have already been forced to cut back on essential food or fuel, which could put their health at risk
And Karl Brookes from watchdog Energywatch said: "Vulnerable customers should be receiving extra assistance and care from energy companies instead of the cack-handed approach adopted by some, and tragically it is quite possible that a death or deaths could result from being faced with the stress and worry of not being able to afford to heat their home.
He said that 70 per cent of the calls to his organisation are complaints or calls asking advice about bills.
Case study: Couple left in the cold.
End 'greed' of energy companies.
"Every year there are unnecessary winter deaths, but we cannot be certain just why. It may be because they simply cannot afford the bills they are faced with, even though they could receive help in dealing with them, or they may take the course of putting on extra clothing rather than keep the heating on, with the result that they don't keep warm enough."
The country's biggest domestic supplier British Gas, heaped problems on hard-up households when it raised gas bills by a staggering 35 per cent and electricity prices by 9 per cent in July.
And the last of the big six suppliers, ScottishPower and Npower jumped on the bandwagon at the end of last month when they too announced hefty increases.
All have used the excuse of the rising cost of wholesale gas and power prices for the increases for residential customers, though are still managing to make vast profits themselves.
The price hikes have taken the combined average household bill for gas and electricity to between £1,200 and £1,300 a year, when at the start of the year dual fuel bills were well below the £1,000 mark.
A coalition of Age Concern, National Energy Action and the Child Poverty Action Group, says that well over five million households are likely to face fuel poverty this winter.
Age Concern says that a key to any solution to the problem has to be a fairer deal for the most vulnerable consumers. A spokesman for the charity said: "We are in a fuel poverty crisis, and the pensioners and other groups most affected will take cold comfort from future energy efficiency measures when they are struggling to heat their homes this winter.
"If fuel poverty levels are to be significantly reduced, improving energy efficiency is a key part of the solution but widespread reform is also needed from government to address the unfairness in energy prices faced by the poorest households."
A spokesman for Age Concern in Trafford said: "We have noticed a marked increase in the number of older people coming to us via our information and advice service with great concerns over the increase in their energy bills. Many people are worried about how they will meet the rising costs of fuel.
"We would advise all customers who are having difficulty paying their bills to contact their energy supplier directly to make sure that they are on the best tariff for them. They may be able to switch to a cheaper or fixed tariff with their current energy supplier.
"There were more than 3,000 deaths last year in the north west due to cold-related illnesses. If you are struggling to pay gas or electricity bills, the consumer watchdog Energywatch can help you avoid getting into debt.
"As well as advice on bills, Energywatch can help you switch suppliers, register you for free services and let you know about grants and benefits you may be missing out on.
Contact them on 0845 688 9594. Your local Age Concern can also offer you free, independent advice."
Case study: Couple left in the cold.
End 'greed' of energy companies.
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Price rises put penioners at risk
September 09, 2008
Tough winter ahead
Showing comments 1 to 23 and replies | View All
Rugbygirl 2605, urmston (09/09/2008 at 07:52)
The Seeker, Eccles (09/09/2008 at 09:40)
Sir Reginald Ringpull, A-u-L, Lancashire (09/09/2008 at 10:16)
"Labour have done nothing to help pensioners."
You think that the Winter Fuel payment worth at least a fiver a week, a minimum income quarantee of £124.05 a week and free bus travel for a single over sixty year old is nothing? It may be not enough but it is an improvement on what went before. Prior to privatisation they "owned" a little bit of the gas and electric companies as well.
Guten Tag (09/09/2008 at 10:19)
Black Flag (09/09/2008 at 10:37)
I don't see the point of means testing either. It just adds an extra layer of bureaucracy, it gives the impression that the payment is a hand out, which will discourage some from claiming and it unfairly punishes those who have made provision for their retirement.
The situation could be improved by simply increasing the basic state pension.
The Seeker, Eccles (09/09/2008 at 10:41)
Guten Tag (09/09/2008 at 11:03)
Black Flag (09/09/2008 at 11:20)
I also don't believe that means testing would release more money for those who need it. It would release more money which would then be spent funding the testing processes. Means testing is just wasteful.
Ace Shakepseare, manchester (09/09/2008 at 11:25)
Good idea i also know some pensioners (ex company directors) Who have a very healthy pension ans use the winter heating money for holidays.You are right it should be means tested,so that it goes to the people who really need it.
Guten Tag (09/09/2008 at 11:38)
Black Flag (09/09/2008 at 11:59)
The reallocation of wealth is done by taxing the wealthy more. There is no need to supplement that by denying them the benefits afforded to everybody else.
By making the system dependent on means testing, you force people to stay poor and dependent on the state. Those who are poorest know that if they try to improve their lot, they could end up worse off in the long run as their increasing wealth is cancelled out by the loss of benefits.
By taking away means testing and making benefits universal, it creates a genuine safety net and allows people to work to improve their lives with the confidence that they won't be punished for it.
It is your approach that creates the divide between rich and poor, not mine.
Guten Tag (09/09/2008 at 12:49)
Black Flag (09/09/2008 at 13:10)
As you say, action is needed know, which, thankfully, doesn't allow time for the introduction of another layer of bureaucracy to administer another invasive means tested scheme, so any benefit given needs to be universal.
sarahx, manchester (09/09/2008 at 13:25)
Guten Tag (09/09/2008 at 15:13)
Chris Green, Chorlton-cum-Hardy (09/09/2008 at 16:49)
The more complex the benefit the more open it is to wasteful bureaucracy, fraud and failure to reach the intended recipient.
The state pension should provide those who have contributed the appropriate NI contributions a decent living income.
hodie, wiltshire (10/09/2008 at 10:15)
Black Flag (10/09/2008 at 10:49)
It could be funded by an increase in income tax, but I think it would be better still to fund it by bringing the VAT on domestic energy, which is currently 5%, in line with the VAT on other products at 17.5%. That way the revenue would automatically move in line with price movements.
A Singleton, Gorton (10/09/2008 at 11:32)
The revenue from this tax increases in line with the price of fuel, which has risen substantially in recent years.
Did the Labour opposition not completely slate the Tories when VAT on fuel was introduced ?
Black Flag (10/09/2008 at 12:44)
Unfortunately it doesn't work that way. VAT on domestic energy is 5%, but on most other purchases it is 17.5%, so, if people are spending more on energy and cutting back elsewhere, the amount of VAT collected will fall.
EU rules don't allow the scrapping of VAT anyway, so even it the government wanted to get rid of the VAT on fuel, they couldn't.
Ace Shakepseare, manchester (11/09/2008 at 10:56)
Black Flag (11/09/2008 at 11:11)
If it bothers you so much, instead of whinging, switch to a supplier that isn't.
betty senior, huddersfield (11/09/2008 at 19:40)
Dear I'm alright Jack, Gordon,
Don't you realise Gordon that these energy companies are just businesses, not charities, only interested in one primary thing, profits and as much as they can get their greedy little hands on. Therefore Gordon I will tell you now that through 'stealth' and indirect charging, they will one way or the other get their dirty grubby hands on the £900 million plus you say they will have to pay into your system again at some time in the near future. This must be the most unintelligent decision that you have made and where your hope is ill-founded. Haven’t you heard of Owen-Lloyd of E.On, the one who very recently said ‘…the continued high gas and electricity prices would mean "more money for us"
Wake up Gordon, I thought that you were supposed to be the wisest of the wise chancellors. This appears suddenly a bit of a misdemeanour and where there was absolutely no truth in this rumour whatsoever.
Give us a pound Gordon, I promise that I will give it you back,…err sometime...err I promise, you know that you can trust me.
Dr David Hill
World Innovation Foundation Charity (WIFC)
Bern, Switzerland