Energy News

Pensioners to get £80 energy rebates

Friday, 12 March 2010

By Daniel Barnes- daniel@consumerchoices.co.uk

If you’re over-70 and on pension credits, you may shortly be getting an £80 credit on your electricity bill.

Low income pensioners should be in line for a rebate in £80 on their electricity bills.

The Energy Rebate Scheme will offer an £80 electricity rebate to 250,000 of the poorest pensioner households. The scheme is funded by the “big six” energy suppliers British Gas, EDF Energy, E.ON, npower, ScottishPower and Scottish & Southern Energy, which have pledged to spend £150 million on social assistance schemes in the coming year.

The rebates will go to over-70s who are receiving Pension Credits. They will be contacted directly by the Department for Work and Pensions (DWP), after a data sharing deal with the energy companies was signed.

Pensions secretary Yvette Cooper said: "I don’t want any vulnerable pensioners to be afraid to turn up their heating. That's why we’ve spent a record £295 million in cold weather payments and £2.7 billion in winter fuel payments so far this winter.

"This deal will now deliver extra help of £80 to some of the poorest of pensioners over 70 and give them the reassurance they need as we come out of the coldest winter in decades."

Jonathan Stearn, energy expert for Consumer Focus, said: “Better targeting of assistance to low income households is the way forward in assisting the poorest customers who are struggling to meet their energy bills.

“This is a very welcome move and needs to be developed to help all low income consumers struggling to make ends meet.”

He called on the government to repeat the rebate for low income families, disabled people, and those facing energy debts.

The DWP hopes the pilot data sharing scheme could be extended so all those eligible for social tariffs receive lower energy bills.

Currently some people are failing to get energy discounts as they are eligible but there name does not appear on the electricity bill.

Garry Felgate, chief executive of the Energy Retail Association (ERA), which represents the major energy firms, raised hopes the pilot could be repeated.

“Suppliers work very hard to identify those customers most in need of the help that’s available from their energy company and the information being provided by DWP should make this process easier and more efficient,” he said.

“We hope this pilot scheme will pave the way for further cooperation in the future.”

He added the scheme builds on cheaper social tariffs aimed at vulnerable households along with grants for free or low cost insulation and energy efficiency improvements.

In most cases, households will not need to claim the rebate directly, but it a number of cases the DWP will contact people informing them how to make a claim directly so they do not lose out.