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. Tweet
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It is horrible - maybe people at more risk should have pre payment meters put in their homes? That way they could top up the fuel in a more affordable way. I know my DD has risen from £30 a month to £50 and even now it looks like it could rise further. My gas is £35 a month and I only have a single gas fire and cooker! No central heating at all!!! Jumpers for us I think!!
What kind of country is it that allows One-in-four retired people live below the poverty line (the same number as when Labour first came to power in 1997. Now with rising fuel costs what chance have poverty stricken pensioners got? Labour have done nothing to help pensioners.
The Seeker, Eccles wrote:
"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.
Liarbour promised quite a few things when they came to power, a lot of which have since been broken! Pensioners should enjoy the same benefits Irish pensioners receive, a substantial discount deducted from the bill as well as a winter fuel allowance added direct to the bill (not cash in hand). For those who can't afford it (means testing?) they should get free double glazing, central heating and loft/cavity installation. And before you bleat about the cost, how much is spent on the War on Terror per year? The cost of the Euro Fighter, new warships, etc? Priorities by this government are completely back to front!
Guten Tag, why should the pensioners receive a discount, rather than cash in hand? It just seems like a patronising way to tell them how to spend their money, rather than letting them make their own choices.
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.
Sir Reginald Ringpull. What went on prior to 1997 was ABJECT POVERTY. Now we just have POVERTY. And hey Guten Tag - bang on. 5 Billion spent on Iraq. A country which has nothing to do with Britain. Waste of British tax payers money.
Black Flag, I've ALWAYS bleated on and on about a substantial raise in the pension, but I think Hell will freeze over first before that happens. I know of a few pensioners who use the winter fuel allowance as holiday money as they've made provisions for their retirement, so that's why I talk about means testing, this would release more money for those that need it which should be deducted at source from the bill as a discount, not a cash payout. It works very well in the Republic of Ireland.
Guten Tag, I still don't see why it should be deducted from the bill rather than paid as cash.
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.
Guten Tag
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.
Blackflag, there are literally thousands of pensioners out there that are considered wealthy (even worth millions). They have no need for discounts or cash payouts. A fair and just system would be by way of means testing. Yes, I know, they've worked all their life so they should be afforded little luxuries like this, but that's why we have such a divide between rich and poor as the system just doesn't cater for those that need it. Key words 'need it'. If you've paid NI contributions, then your entitled to a pension, but all other benefits should be means tested, and the extra wealth gained redistributed to those that need it. That makes for a just society were we can look after our pensioners that need it, not those jetting off to Spain for two months over winter.
Guten Tag, what you are suggesting doesn't make for a fair or a just society, it makes for a heavily divided society.
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.
Blackflag, I agree with some of your points, they are sound in theory, but in practice, this country would never be able to raise taxes fairly enough to take into account fuel allowances, the so-called war on terror, etc, etc. We are almost a bankrupt country! Action is needed now, not in a two years time when any changes to tax would come into effect (and then squirrelled away by the Government for their allowances!). The energy companies have made a substantial profit, enough so that a discount can be added at source to all over 60's/65's immediately. This discussion is about pensioners going cold, in the next few weeks, not next year and beyond!
Guten Tag, the cost of taking the universal benefit approach would be far lower than the means tested approach. It would remove the cost of running the means testing structure, leaving more money to be paid out, plus, the people paying more tax would be more comfortable doing that if they knew they would get something back for it.
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.
the energy companys just get richer & richer while the pensioners get poorer & poorer, My parents are pensioners & although my dad has a fairly decent pension which he has worked very hard for my mother hasn't, they are paying £130 a month for Gas & electricity & they fear come winter they may have to not use the heating as it costs too much. it is just disgusting the way people are treated in the country I have worked hard since leaving school & really worry about how i am going to cope when i reach pension age
Sarahx, you raise another important question. I've 30 years ahead before retirement. What is it going to be like then, considering pensions don't keep up with inflation, council tax rises and so on? Or maybe this is the Governments long term plan to reduce the ever growing OAP population through cold related deaths? I know one thing though, and that is, Blair, Brown and Co will never go cold in their old age. Disgusting!
Means tested benefits are a poor way of helping people out of poverty. Hundreds of millions of pounds are not claimed every year on a variety of benefits. This is through people not knowing what to claim for, not being able to fill in many pages of complex forms, or because some people think that after paying a life time’s tax and NI that they are entitled to receive a pension and that this pension should be sufficient to live in dignity.
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.
It need not be either Universal or means tested benefits. Joined up thinking might suggest an increase in pensions for all but one ot two pence extra tax on incomes over £75,000 (or thereabouts). Then listen to those who are well off scream about either going to live abroad or refusing to invest and, of course, being listened to as many of them are the "floating voters" who decide elections in marginal constuencies.
hodie, by definition, an increase in pensions for all is a universal benefit.
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.
The Government say they're committed to help, but no mention is ever made of reducing (or scrapping) VAT on fuel.
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 ?
A Singleton: "The Government say they're committed to help, but no mention is ever made of reducing (or scrapping) VAT on fuel. The revenue from this tax increases in line with the price of fuel, which has risen substantially in recent years."
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.
Its not just pensioners its people like myself who have a problem with health like my lungs i have to keep warm in the winter months which costs me a fortune in heating bills etc.and putting loft insulation etc isnt the the way to go for me? This goverment dosnt help the disabled of the country just the slackers who want to walk into britain for a easy life.My utilitie bills have shot up but my income has stayed the same. this has put some strain on my weekly living.or should i say existance,which i blame on britain being part of europe because most of our utilities are owned by germany/france/italy who are also finding things hard so they shove our prices up to help their own struglling ecconomies.
Ace: "which i blame on britain being part of europe because most of our utilities are owned by germany/france/italy"
If it bothers you so much, instead of whinging, switch to a supplier that isn't.
Open letter to Gordon - Your energy strategy is simply unintelligent rubbish
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