In yesterday’s Budget announcement, the Chancellor pledged to provide pensioners over 60 with an extra £50 on top of their standard £200 winter fuel allowance. Pensioner’s over 80 will receive an extra £100.
Charity for the elderly Age Concern have been quick to point out that these allowance increases will not cover recent price hikes by fuel providers. Fuel bills are averaging around the £1000 a year mark, and Age Concern predicts 2.25 million pensioners will live in fuel poverty this year.
Gordon Lishman, director-general at Age Concern, was quick to highlight the tokenistic nature of the winter allowance increases:
‘An increase to the winter fuel payment this year is a spoonful of sugar to make the bad medicine Budget go down. Although this announcement is welcome, many older people will feel it is nowhere near enough to address the cocktail of price hikes they have had to swallow this year.’
Each of the ‘big six’ energy suppliers announced inflation busting price hikes at the beginning of the year, citing rising wholesale prices and the exorbitant price of crude oil as the reason.
Charities criticised the Government further for refusing to bring forward the date at which the basic state pension will be linked to earnings.
Chris Eagle, Commercial Manager at CreditChoices, thinks more can be done:
‘2.25 million pensioners constitutes lot of people. It’s essential that the elderly and the young are kept warm in their own households, regardless of their status or circumstances. Compare the latest deals to make sure that you’re getting the best value out of your current energy tariff.’
