One in five older households are living in poverty or financial hardship

New analysis from Age UK has indicated that one-in-five (21 per cent) older households are living in poverty or just above the poverty line and/ or are in receipt of income-related benefits.

The Charity is warning that these older households, which include some of the poorest and most vulnerable older people in England, will miss out on much-needed financial help as their property is not in Council Tax band A to D.

There are 4.3m households in England that will not be eligible for the Council Tax rebate because they live in properties with Council Tax band E to H, among whom half (2.1m) include at least one person aged 60+.

The analysis, published ahead of the Chancellor’s Spring Statement, highlights the cracks in Government support for older people living in poverty or financial hardship who happen to live in the ‘wrong kind of homes’. With many already struggling to manage the escalating cost of living, Age UK is warning that basics such as food and heating are fast becoming unaffordable for many pensioners living on a low fixed income – and that’s before energy tariffs skyrocket in the weeks ahead.

Age UK is deeply concerned that the support package announced by the Government last month falls badly short of what is needed to protect older people on low and modest incomes from unaffordable energy bills and other rising prices. With wholesale gas trading at record prices and analysts estimating that average energy bills could rise to over £3,000 a year.

Additional research for Age UK shows that one in six (16 per cent) over-65s worry that their health has been worse [this winter] because they have been too cold, with over two in five (44 per cent) over 65s worrying that their health could be harmed by being too cold – rising to almost half of older women (49 per cent).[iv]

Caroline Abrahams, Charity Director at Age UK, said “It was already clear that the support announced by the Government last month was insufficient to protect older people on low and modest incomes from the impact of inflationary price rises. Now, deepening our concerns, our new analysis shows that one in five of the older population who are already hard-pressed are set to miss out on the £150 council tax rebate. The Government must do more to help them by expanding eligibility for the rebate scheme, or through some other mechanism that puts additional cash into their hands.”

“The Chancellor paused the triple lock guarantee to the State Pension this year on the basis that the increase in average earnings at the time was a temporary blip due to the pandemic. Since then, prices have soared so next month’s planned 3.1% increase is only a drop in the ocean compared to the sharp rises in energy and other costs confronting us all. As things stand, at Age UK we simply cannot see how older people who have no other sources of income besides their State Pension and benefits will be able to pay the higher prices they face. Those with few if any savings are out of options and their only hope now is that the Government will recognise their difficulties and extend a helping hand.”

“At the very least the discretionary fund for those who don’t qualify for the Council Tax rebate should be doubled. Access to this fund must be easy, quick and timely, and the amounts available must be enough to make a difference – otherwise significant numbers of older people in England really will be in dire financial straits from April.”

“The Spring Statement is the Chancellor’s opportunity to demonstrate he understands how inflation is overwhelming the best efforts of older people on low incomes to stay afloat, and is willing to send them a life raft. We are hearing from many older people who never dreamed that they would find themselves in such deep financial trouble at this stage of their lives, and who are frankly terrified about the bad news on prices the rest of the year may bring. It’s an absolute nightmare for them.”