Charity warns thousands of Welsh pensioners will suffer after energy price cap hike

A leading charity has warned that thousands of older people in Wales will suffer as a consequence of the 10% hike in the energy price cap announced last week.

The average household energy bill is to increase by £149 from October after Ofgem announced on Friday that it was increasing its price cap.

The regulator announced it is raising its price cap from the current £1,568 for a typical household in England, Scotland and Wales to £1,717.

Ofgem said rising prices in the international energy market, due to heightened political tensions and extreme weather events, were the main driver behind the decision.

It means households will be going into the colder months facing higher bills than since April when the cap was lowered.

Millions of pensioners are facing a winter with less support after the new UK Government decided to scrap winter fuel payments for those who do not receive pension credits or other benefits.

Pensioners will also have up to £600 less this winter in UK Government support with their heating bills, compared to last year, because cost-of-living payments brought in temporarily by the previous Government have now stopped.

Devastating

Age Cymru described the price cap announcement as “a devastating blow to older people across Wales”, combined with the plans to cut winter fuel payments “with virtually no notice and no compensatory measures to protect poor and vulnerable pensioners”.

A spokesperson for the charity said: “We believe that thousands of older people in Wales will be seriously hit by this increase, with many people reliant on the Winter Fuel Payments to cover their energy bills throughout the colder winter months.

“We’re deeply concerned that some older people will be tempted to turn their heating down or off to save money. This could jeopardise people’s health and place more pressure on our health and social care services during winter.

“Some older people will cut back on their social activities to save money, increasing isolation and loneliness.”

Age Cymru’s 2024 annual survey found that almost half of older people in Wales found the cost of living to be a challenge over the last 12 months, and over half of older  people had issues with their physical health.

It says it is particularly worried about people who just miss out on Pension credit because their very modest incomes are slightly too high for them to be eligible, usually because they have a small occupational pension. Many of them are women.

It has also highlighted the plight of pensioners with high energy needs because of disability or illness, and/or who live in energy inefficient homes which cost a lot of money to heat.

Pension Credit

Between 70,000 to 80,000 pensioners in Wales don’t receive the Pension Credit for which they are eligible because they do not claim it.

The charity says: “The problem of low take up with Pension Credit is deeply entrenched, with about a third of all those entitled to it consistently failing to claim it over many years.

“There simply isn’t long enough for many to work out another plan. The UK Government has said more will be done to encourage those entitled to Pension Credit to claim it, but this will take time and won’t stop many missing out this year.

“To help maximise their income we’re encouraging older people to see if they’re eligible for pension credit. This will also enable people to access the Winter Fuel Payments. If you’ve been turned down before, it may still be worth making a new claim, as benefits rates change, as can your finances.”

Commons vote

On Saturday former Prime Minister Rishi Sunak backed proposals for a Commons vote on the means testing of winter fuel payment.

The former prime minister is one of several MPs to have signed an Early Day Motion (EDM), urging the Government to back down on its policy to end the universal winter fuel payment for pensioners.

Winter fuel payments of up to £300 were previously paid to all pensioners, regardless of their income or benefits.

But Chancellor Rachel Reeves claimed Labour had inherited a £22 billion “black hole” in this year’s budget when she arrived in Number 11 Downing Street, made up of allegedly unfunded spending pledges by the previous Conservative government, so declared she would limit winter fuel payments to people on income-related benefits or tax credits to ease fiscal pressures.