Lights out: How older people on a low income are being impacted by high energy costs
Senior Policy Officer Ellie Gaddes explores the impact of high energy bills on people in later life, and what support is needed to help older people living on a low income.
In this series of blogs, we’re breaking down our research on how household costs impact older people on a low income. We’ve explored how broadband costs are increasing the digital divide and forcing many older people to miss out on important connections and opportunities, how water bills are putting pressure on people, especially those living with long-term conditions or disabilities, and how promoting Council Tax Reduction could help more older people get the financial support they need as Council Tax costs rise.
At Independent Age, we believe that no-one should have to live in a cold or dark home due to unaffordable energy bills. This blog explores what we think needs to change.
High Energy Costs
The typical annual energy bill is currently set at £1,923. While bills have fallen slightly from the level set earlier in 2023, this is still considerably higher than it was in recent years. In the winter of 2021–22, a typical household paid £1,277 per year — nearly £650 less. It’s worth noting that these amounts are just averages, and some households with high energy requirements — for example those needing to power medical devices — will be paying far more.
Energy bills are expected to remain high in the coming years, with prices not predicted to return to pre-2020 levels before the end of the decade at the earliest.
Independent Age’s report released in September 2023 explores the impact that high costs, including energy bills, are having on older people living on a low income. We heard:
“I am in debt. I don’t use my cooker, only shower once a week, washing done by hand, only heat one room in cold weather for one hour in the morning and one hour in the evening.” Tracy, 60s
As part of this research, we commissioned nationally representative YouGov polling into how people in later life are coping with their household bills. This polling found that 58% of people aged 65 and over on a low household income in Great Britain are having to cut back their spending on heating a ‘great deal’ or a ‘fair amount’. Another 37% said they are having to cut back on non-heating electricity — for example lighting, television, and appliances.
The older people we spoke to told us about the struggles they are facing as they try to reduce their high energy bills. Some people told us they were afraid to turn their heating on, and instead wore extra clothes, spent as much time in public places as they could, and went to bed early. Others told us they were keeping the lights off, washing in cold water, avoiding doing laundry, or eating cold food — all to try and keep their spiralling costs as low as possible.
At Independent Age, we believe that this is unacceptable. So, what can be done?
Additional financial support this winter
Extra financial assistance over the winter would have a huge impact on those struggling the most with their energy costs, including older people on a low income. It could prevent them from having to live in cold homes, or from making dangerous spending cuts.
In our polling, we found that when thinking about their financial situation over the next six months, 52% of older people on a low income said they were worried they will not be able to pay their gas or heating bills, and 54% had this concern about their electricity bills.
“I can manage my bills in the summer [with] no heating, but winter is another story. I dread the winter and spend long evenings in bed to keep warm.” Ann, 75
“I go to bed at 7pm in winter…I get up later in winter…My house is freezing, I’m scared to use the central heating.” Margaret, 76
“I gave myself, on top of rheumatoid arthritis, the condition known as Raynaud’s by being so cold at home last year, as I was too frightened to heat my home. Was so depressed and anxious…It was awful…Can’t do that again this year.” Anonymous
It is clear that without immediate financial assistance, the coming winter will be another incredibly difficult struggle for older people living on a low income. We are concerned that some people in later life struggling with financial hardship could lose their lives as their health conditions are exacerbated while living in a cold home.
We believe that no-one should be forced to live in a cold home because of unaffordable energy costs. That’s why we are calling on the UK Government to introduce additional financial assistance to support the most vulnerable through the winter of 2023/24. In the absence of the Energy Bills Support Scheme this winter, households will be facing bills 13% higher than this time last year.
We also believe that the eligibility criteria for the current Cost of Living Payments should be expanded to include those on Housing Benefit and Council Tax Reduction. This will ensure that this important financial support reaches more older people on a low income who need it.
Introducing an Energy Social Tariff
Alongside this support, a long-term solution is urgently needed to provide more protection from high energy prices.
Simply put, an energy bills social tariff would discount the cost of energy for those in greatest need, including people in later life living on a low income.
An energy social tariff could have a huge impact on the lives of older people facing financial hardship. It could prevent people from being forced to make impossible choices — such as choosing between heating or eating. The older people on a low income that we spoke to told us what an energy social tariff would mean to them:
“It would be a godsend. People wouldn’t have to choose between buying food or being warm.” Anonymous
“An amazing difference, stop the worry and stress of getting my energy bill and possibly being able to heat my property instead of how it is now.” Caro, 76
The nationally representative polling we commissioned showed that there is majority support in Great Britain among older people on a low income for an energy bills social tariff. Over 85% of the older people we polled told us they supported introducing an energy bills social tariff.
There are different ways an energy bills social tariff could work. Our research has suggested that a unit rate discount — which would discount the rate charged for each unit of energy used by the eligible household — would be a helpful and fair way of providing longer-term energy bills support.
Social tariffs already exist for other household bills — all water companies in England and Wales offer one, as well as most major broadband companies. Although improvements are needed, where they exist water and broadband social tariffs are already having a huge impact on the lives of older people living in financial hardship — so its time an energy social tariff was introduced too.
Alongside multiple other charities and non-profit organisations across the UK, Independent Age is calling on the Government to introduce an energy social tariff for people of all ages on a low income. We believe this would provide a long-term solution to support those who are struggling with the impact of high energy costs, including older people living in financial hardship.
You can find out more about our research on rising household costs and their impact on older people in financial hardship by reading our blog posts on broadband, water and council tax costs, or by reading the full report.
Find out more about ways to boost your income and cut costs through advice on our website. You can always contact our free Helpline on 0800 319 6789.
If you have experienced problems affording your energy bills since reaching your State Pension age and want to share your story, please contact: campaigns@independentage.org
