Pensioners 'pay more, get less' for energy
Pensioners are paying more but getting less energy, a report from the Institute for Fiscal Studies (IFS) has revealed.
Despite increasing spending on energy by almost one third, pensioners have reduced their consumption by seven per cent between 2004/5 and 2006/7 as fuel bills soar, according to the report.
The study showed a sharp divide between the richest and poorest pensioners, with the poorest fifth of pensioners spending nearly 40 per cent of their budget, after housing costs on food and fuel, while the richest fifth spent just under 20 per cent.
Andrew Harrop, head of public policy at Age Concern and Help the Aged, said: "Shockingly, the report finds that while poorer pensioners are spending more of their available income on energy, they are - at the same time - reducing the amount of energy they buy.
"Not only does this demonstrate the problem of soaring energy costs in recent times, but is a warning to policy makers and others that vulnerable older people could be putting their health at risk in winter just to cut costs."
Jonathan Stearn, energy expert for Consumer Focus, said: "It is shameful that vulnerable pensioners' energy bills have gone up, despite them having to turn down their heating to cut costs.
"We need a radical energy efficiency scheme from the government to protect the poorest pensioners, families and disabled people from fuel poverty. The energy companies must also do the right thing by their customers and pass on the significant wholesale energy price cuts immediately."
The government must take action against the suppliers if cuts are not passed on, Consumer Focus said.
The watchdog estimates that consumers are being overcharged by £100 a year after energy suppliers failed to pass on the falls in the wholesale price of energy this year.
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