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Ofgem price cap hike will hit struggling older customers hard

6 August 2021

222,000 older households already living in fuel poverty with new research highlighting energy bills the biggest financial worry for over 50s.

Age Scotland has warned that a new Ofgem price cap rise risks pushing an increasing number of older people into fuel poverty, at a time when many are already feeling financially squeezed by energy bills.

New research from Age Scotland ’s “Big Survey” of over 50s in Scotland, conducted with ScotInform, found that energy bills were by far the greatest financial cause for concern among respondents, mentioned by 82% of those who felt financially squeezed. In addition, two thirds of respondents (67%) said that the requirement to stay at home over the last year had resulted in higher home energy bills than previous years, with 13% struggling to pay increased bills and 38% taking measures to use less energy.

These new figures come as regulator Ofgem announced that the price cap for default domestic energy deals will rise from October.

As households across the UK could see their bills rise by up to £139 as a result, Age Scotland is concerned about the impact this will have on the 1 in 3 older households (around 222,000) in Scotland already living in fuel poverty, who may have to pay a lot more to heat their homes heading into winter.

Age Scotland’s Chief Head of Policy and Communications Adam Stachura said:

“The increase in Ofgem’s energy price cap will be a real worry for a huge number of older Scots, who even before the pandemic had trouble with being able to afford to heat their homes in the winter months.

“As people have spent an increasing amount of time at home due to lockdown restrictions, shielding and working from home, the rising cost of energy bills has become a source of great anxiety. Our latest research shows that two thirds of older people found these bills increase last year as a result, with 13% struggling to pay.

“It’s worrying to hear of so many already considering taking steps to cut down on other necessities in order to be able to afford soaring energy bills and news that bills may rise further still from October will put struggling older customers in a very precarious position. There must be about a million households in Scotland who are already paying too much for their energy and are stuck on the high, standard variable tariff. For the half million over 60s without the internet, finding out about new deals and switching supplier is very hard indeed.

“It’s vital that older people double check they’re not missing out on any financial support such as Pension Credit or the Warm Home Discount, or help with home insulation and draught proofing. They can call our 0800 12 44 222 helpline to do this. It’s also worth finding out if you could save money by changing your energy tariff or switching supplier before the cold weather hits.”

Age Scotland’s free 0800 12 44 222 helpline can offer further advice about saving energy, staying warm and well, and check for missing social security entitlements. Support and information is also available on the Age Scotland website at www.age.scot/energy