Pensioners face winter fuel payment wipe out

Date published: 19 January 2008

Rochdale MP Paul Rowen has called for Government intervention after British Gas announced that both gas and electricity bills were to rise by 15%.  They are the third energy supplier in recent weeks who have upped their bills.  EDF Energy announced huge increases earlier this week and just days earlier Npower also announced huge increases.  Paul Rowen is now claiming that "it is inevitable that others will follow".

Mr Rowen has called on the Government to intervene and protect pensioners from these huge, pension busting increases.  He made the call after figures showed that recent increases in the cost of electricity and gas are set to wipe out pensioners' winter fuel payment.

Figures received by the Liberal Democrats from the House of Commons Library show that since 2004/5, and taking into account recently announced price rises:

• For a typical pensioner household aged 65-74 with gas central heating, gas bills have gone up by £260pa and electricity by £160pa - a total of £420.
• For a typical pensioner household aged over 75 gas bills are up £200pa and electricity bills up £150pa - a total of £350.
• The value of the Winter Fuel Payment per household for those aged 60-79 is £200, and £300 for those aged over 80.
• The £300 rate for the over 80s was introduced in the winter of 2003/04 and hasn't risen since.

Mr Rowen, who earlier this week tabled an Early Day Motion on the fuel crisis said: "There are, according to the last census, approximately 15,000 pensioners in Rochdale.  The recent fuel cost rises will put them in a financially difficult position. 

"The Government must do far more to combat fuel poverty. The top priority must be to end the scandal where pensioners are paying a fortune to heat draughty houses where a lot of the heat is simply wasted. Many older people are currently paying to heat the great outdoors in addition to their own home.  The Government needs to get its act together and make sure that our pensioners don't have to make a choice between heating and eating on cold winter days."