Energy price cap rise sparks warning over impact on older people in Wales

Mark Mansfield

Older people in Wales could be pushed further into financial hardship after the energy price cap was increased to a three-year high, the Older People’s Commissioner has warned.

Ofgem has announced the cap will rise by 4% from October 1, increasing the annual bill for a typical household using gas and electricity by £60, or £5 a month, to £1,723.

The increase will apply until December 31 and comes as households begin using more energy during the colder months.

Analysts at Cornwall Insight have also forecast a further 9% increase from January, which would take a typical annual bill to £1,872 – £149 higher than the October level.

Ofgem said higher wholesale gas prices resulting from the continuing conflict in the Middle East were the main reason for the latest increase.

Older People’s Commissioner for Wales Rhian Bowen-Davies said the increase would be particularly concerning for those already struggling to meet essential costs.

She said: “While this may appear modest in annual terms, for many older people in Wales already cutting back on heating, food and other essentials, any further increase will add to the pressures they face this winter.

“This rise comes at a time when poverty amongst older people is continuing to increase.”

The Commissioner pointed to figures showing that in November 2024, 22% of older people in Wales went without heating in their home, 15% went without bathing and 23% skipped meals or ate less.

Ms Bowen-Davies called on the Welsh Government to provide additional help for people who are struggling but fall just above the eligibility thresholds for existing support.

In June, she wrote to First Minister Rhun ap Iorwerth calling for a Resilience Fund to provide assistance to older people who do not qualify for existing schemes.

She also called for UK Government action on Pension Credit take-up and targeted energy support, including consideration of a social tariff.

Ms Bowen-Davies said: “Many older people are missing out on support that could make a real difference.

“Even a small award can provide vital extra income and may open the door to further help with costs such as Council Tax, TV licences, dental and eye treatment, and housing costs.”

Impact

Prime Minister Andy Burnham acknowledged the impact of the increase but pointed to the government’s decision to remove VAT from electricity bills from October.

He said: “It’s difficult for people and I recognise that.

“But it’s why, within days of taking office, I announced that we would remove VAT off electricity bills to give people that little bit of help. That kicks in from October.

“We know the price cap will have an impact, but it is what we can do right now.

“We’ll continue to look as we go forward at how we get energy prices down in the long term, and that’s what we need to do too.”

Ofgem said households may be able to make savings by switching to fixed tariffs, with some deals available at £100 or more below the October cap.

Neil Kenward, Ofgem’s director-general for markets, said: “High international gas prices are continuing to drive energy costs in the UK.

“We welcome the Government’s intervention to remove VAT from electricity bills, without which customers would have faced even higher costs this winter.”

Struggling

Consumer groups have warned that the government measures will not be enough for households already struggling with bills.

Citizens Advice chief executive Dame Clare Moriarty said the rise was “another sign of the relentless erosion of living standards across the country”, while the End Fuel Poverty Coalition called for ministers to provide further targeted support.

The new price cap takes effect on October 1 and will remain in place for three months.

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