Credit, Collections & Insolvency News
1.3 million elderly people will struggle to afford their energy bill this winter according to new research by comparethemarket.com. Two fifths (43%) of over 65-year olds are worried that cold weather this winter will lead to higher energy costs, over one in ten (11%) don’t feel they are in a position to afford an increase in their energy bills – equating to 1.3 million people nationwide.
Over a third (38%) of elderly people are set to ration their energy use this winter due to the rising cost, according to a survey of 2,000 respondents aged over 65 by comparethemarket.com. Their decision to limit their energy use comes despite the fact that a staggering 88% believe that the cost of energy presents a real health threat to older people living in the UK.
If their energy costs increase this winter, nearly half (48%) of over 65s said they would have to dip into their savings or use credit, while over a third (37%) believe they would need to cut down on expenditure in order to make ends meet. More concerningly, over one in ten (12%) say their health suffers because they limit the amount of heating they use and a fifth (20%) eat less or buy cheaper food to offset the cost of energy bills.
Recent comparethemarket.com research found that the average energy bill has risen by over £240 to £1,625 in 2017, an increase of 14% on last year, but those on standard variable rate tariffs may be paying even more. comparethemarket.com found that nearly a fifth (17%) of over 65s are on these default tariffs, equating to 2 million OAPs across the country.
Despite various government and regulator initiatives to tackle the rising cost of energy, over half of respondents (56%) believe that the proposed price cap would not do anything to reduce their energy bills and over a third (36%) did not even realise the government planned to introduce the cap.
Peter Earl, Head of Energy at comparethemarket.com, said “The rising cost of energy is a real concern for older people, especially at a time when household bills are already sky high. Cold weather already presents worrying health problems to the elderly and it is critical they should not be faced with additional costs at a time when they are at their most vulnerable. The government’s proposed price cap is not going to help them this winter and is unlikely to provide a silver bullet solution to the problem of soaring prices.”
