The CEO of Age UK has argued that measures confirmed by Chancellor John Healey in Wednesday's budget do not go far enough to support pensioners this winter, warning that older people have been hit by "unfair" changes.
Paul Farmer, CEO of Age UK, said the announcements, which include scrapping the gas standing charge and a one-off £100 Household Energy Payment, "do not go far enough" to protect vulnerable pensioners. The comments come as independent energy consultancy Cornwall Insight predicts the Ofgem price cap for a typical dual-fuel household will rise from £1,723 to £1,999 in January 2027, while EDF Energy forecasts a 27% jump that could push typical annual bills up to £2,192.
Standing charge scrapped for 23 million homes
The Chancellor confirmed that standing charges on gas bills will be scrapped from next year for around 23 million homes. The charges are a fixed daily fee added to bills, regardless of how much gas a customer uses, and cost around £108 per year for a typical household.
He also announced £100 worth of support for people in council tax bands A to D. The move is forecast to help around 20 million households with their energy bills this winter.
Age UK raises concerns over targeting
Mr Farmer told the Daily Express: "While today's announcements are welcome, they do not go far enough to protect older people from the sharp rise in energy bills that is still to come, especially those who are struggling on lower incomes - some pensioners are undoubtedly going to need more financial support this winter."
He added: "Furthermore, delivering support through Council Tax bandings is an inefficient and potentially unfair way of targeting help to those most in need. There are a number of older people living in higher banded properties who have a very low income, and under the current plans they will completely miss out. Once we all know next just how high fuel bills are set to go this winter the Government must come forward with an adequate response."
Concerns for low-income households
Mr Farmer continued: "Those least able to absorb rising costs are set to face the biggest hit. Low-income households with higher energy need due to a long-term health condition or disability, as well as those living in energy-inefficient homes, could see their energy bills rise further as a result of changes to standing charges."
He said: "Currently there is a real risk that many pensioners will be left facing impossible choices between keeping warm and making ends meet. The Government need to ensure that they can heat their homes adequately so they can stay safe and well."
Chancellor defends measures
On the moves, Mr Healey said: "I know that with the conflict in the Middle East, rising energy bills are a real worry. I know that people look to government at times like this, not to solve all their problems, but to give them a bit of breathing space."
He continued: "So today I'm taking one further step: this winter for 20 million households in council tax bands A to D, I'm announcing a £100 energy payment for households."
He added: "£50 off VAT, £100 off council tax for this winter 2 tax cuts. For next year, fairer bills and for the long term radical reform of the energy market to produce cheaper power. Breathing space now, hope for the future delivered to the British people by this Labour government."
Prime Minister Andy Burnham added: "Abolishing gas standing charges is about basic fairness and giving people more control over their bills. I am determined to reform our broken energy market, so it better serves the public interest."
