Ofgem price cap increase will hit older customers hard this winter

Age Scotland has responded to news that the price most households pay for gas and electricity will rise by 0.2% on average from Thursday 1 January.

The charity has also highlighted a ‘built-in bias’ between those paying for their energy direct debit and those paying on receipt of bills.  

Age Scotland’s Chief Executive, Katherine Crawford, said: 

“Today’s announcement that the Ofgem energy price cap will increase from January will be a real concern for older households, many of whom are living on tight, fixed incomes and already cutting back on energy use in fear of unmanageable bills. 

“What makes the situation even more unfair is the built-in bias in payment methods. People who pay on receipt of a bill – often older people who may prefer or need to manage payments manually – are being penalised. It is unacceptable that the most vulnerable households are charged more for the same energy than those who pay by direct debit.  

“It’s more pressing than ever that the UK Government take steps to introduce a social tariff for households on low incomes, as this would ensure longer term relief for those who need it most. 

“The current level of support offered by the Warm Home Discount will not go far this winter when you consider a further increase to bills. We would also urge the government to consider the adequacy of this scheme and how it can be strengthened in order to keep pace with energy costs.  

“Older people are the group most affected by fuel poverty in Scotland, so it’s vital to double check you are not missing out on any financial support such as Pension Credit, or help with home insulation and draught proofing. We’d encourage anyone who is unsure about their entitlements to call our free 0800 12 44 222 helpline to do so."