Pensioners are forecast to be “hit hardest” by the likely spike in energy bills as a result of the ongoing US-Iran war in the Middle East, analysts warn.
Sir Steve Webb, a former pensions minister and partner at law firm LCP, is sounding the alarm over the projected jump in energy prices later this year.
Britain’s most financially stretched households dedicate roughly 11 per cent of their total expenditure to gas, electricity, and other fuel costs, according to the Government’s Living Costs and Food Survey for 2023/24.
By contrast, the wealthiest families spend less than five per cent of their budget on energy. The national average sits at approximately 6.5 per cent, meaning the poorest are paying double the proportion of their income compared to affluent households.
Pensioners are expected to bear the brunt of the looming hike in energy bills
|
GETTY
Among low-income groups, single pensioners living alone face particular hardship. This demographic tends to spend more time at home throughout the day and often becomes increasingly sensitive to cold temperatures with advancing age.
Approximately 4.7 million single pensioners currently reside in the UK, with Department for Work and Pensions (DWP) data indicating that widows and widowers account for just over half of this figure, totalling around 2.5 million individuals.
Within this population, some 1.9 million are aged 75 or above, a cohort anticipated to allocate the greatest proportion of their spending to heating and energy of any demographic group.
The Office for National Statistics (ONS) has identified this age bracket as facing elevated risks, stating: “adults aged over 75 years have higher excess winter mortality than younger adults, with adults aged over 90 years having the highest winter mortality; older adults are more likely to have weaker immune systems and long-term health conditions and find it harder to stay warm when it is cold.”
Older Britons are forecast to be worst hit by the looming energy bill spike
|
GETTY
Former Minister for Pensions Steve Webb has issued a warning
|
PAWhile average energy bills have fallen since 2023, several forms of Government assistance remain available to help pensioners manage heating costs, though eligibility for some schemes depends on claiming certain benefits.
Those with annual income below £35,000 may receive Winter Fuel Payments worth up to £300.
Pensioners receiving the Guarantee Credit element of Pension Credit, along with other low-income individuals, can access the Warm Home Discount scheme, which provides £150 towards energy bills.
Additionally, Cold Weather Payments offer £25 per week to benefit recipients during periods when local temperatures remain below freezing for seven consecutive days.
Anyone receiving Pension Credit qualifies automatically for Cold Weather Payments | GETTYMr Steve cautioned that older pensioners with limited means would bear the brunt of any future surge in energy costs.
He said: “Older and poorer pensioners will be hardest hit if energy prices spike. It is vitally important that this group is supported to claim the existing help that is available with energy bills, but much more will need to be done if the cost of home heating jumps.
“It is essential that extra help does not require a complex claims process, as many vulnerable people may miss out.”
Earlier today, Chancellor Rachel Reeves warned the war in the Middle East is “likely to put upward pressure on inflation” over the coming months.
