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Our response to the Prime Minister putting fuel poverty at the top of his political agenda

Gordon Lishman Director General of Age Concern England, said:

"It‘s right that Gordon Brown is making fuel poverty a top priority. Decisive action is needed as price hikes are pushing more older people to the point where they are really struggling to pay their energy bills. We are renewing our call for the Prime Minister to hold an urgent summit at Downing Street to look at long term solutions to address how the Government can get its fuel poverty strategy back on track.

"As an emergency measure, the Government and energy companies should be working together to offer one-off ‘fuel vouchers’ to the poorest pensioners to get them through the coming winter. But as part of a wider package of reforms, the Government must also introduce mandatory social tariffs to ensure that the poorest customers pay a fair price for their energy."

Age Concern’s key calls:

• The Government’s fuel poverty strategy should be urgently revised, with new policies and measures announced as soon as possible.

• As an urgent, short-term measure, energy companies should use the extra £50 million they have pledged to social assistance schemes this year to redeem fuel vouchers for pensioners over 70 who are entitled to Pension Credit.

• Mandatory social tariffs for vulnerable households, which offer the lowest market rate, must be made compulsory through the current Energy Bill.

• A commitment to recycle the £400 million in extra VAT revenue the Government is receiving from fuel price increases to fund measures to help those in fuel poverty.

• The Warm Front programme should be urgently reviewed, with funding immediately increased by at least 25% and the maximum grant available under the scheme increased significantly.

• The Winter Fuel Payment should be permanently increased to reflect unprecedented energy price increases in recent years.

• The Government should use statutory powers to abolish unfair pre-payment meter premiums.


Key Facts

• The number of pensioner households in fuel poverty has more than doubled since 2004. Age Concern estimates there are now more than 2.25 million older households in fuel poverty in the UK.

• If energy prices go up by 40% by the end of the year as widely predicted, the numbers affected could increase by 800,000 leaving over 3 million pensioner households in fuel poverty.

• Almost 1 in 5 UK households – an estimated 4.5 million – are now living in fuel poverty. If energy prices go up by 40%, this could rise to around 6 million households.

• When it was first introduced the £200 Winter Fuel Payment covered over a third of the average fuel bill – it now covers less than a fifth.

• Energywatch estimates the average annual energy bill is now £1058. Predictions of a 40% increase in energy prices this year could see the average annual energy bill increase to £1481.

ACS
14/09/2008