Easing the pain of gas and electric bills

01 March 2010 11:44:46

Pensioners could reduce their energy bills by taking certain steps.

Britons will no doubt welcome the approaching spring after the coldest December and January since the winter of 1981/82. But for many people, particularly older consumers, the gradual departure of winter will leave an unpleasant hangover in the form of sizeable gas and electric bills.

The ice-cold weather has prompted many people to turn up their heating for long periods of time and this has undoubtedly had a damaging impact on energy bills. The situation has had a disproportionate effect on older people, who generally spend more time at home than their younger counterparts. This is highlighted by figures from the Alliance Trust Research Centre, which show that the elderly typically spend nearly 8% of their budgets on gas and electricity bills, compared with less than 4% among under-30s.

Age Concern and Help the Aged has expressed concern at the number of Britons in fuel poverty, a situation that arises when a household spends more than 10% of its income on fuel. In many cases, older people have little choice but to turn off their heating to keep costs down. According to the charity, 36,700 excess winter deaths were recorded in England and Wales alone last year and one in three pensioner households are currently in fuel poverty.

Cost-cutting measures

While reducing the thermostat by just one degree can shave a significant amount off gas and electricity bills, older people can rapidly succumb to illness if they fail to keep warm. There are, however, a number of steps that can help to minimise bills, while ensuring that rooms remain at a comfortable and safe temperature.

Firstly, pensioners should ensure they are claiming any benefits they are entitled to. Andrew Harrop, head of policy at Age Concern and Help the Aged, recently claimed that 1.7 million eligible people do not claim Pension Credit. By not claiming, people will not receive the £25 payments that are automatically handed out to Pension Credit recipients whenever the average temperature falls to zero degrees Celsius or below for seven consecutive days.

As well as claiming their share of benefits, pensioners can help to keep their house warm and cut their gas and electric bills by ensuring their property is properly insulated. According to E.ON, un-insulated roofs and walls account for 25% and 33% of heat lost from a house respectively. The energy provider calculates that full insulation could reduce energy bills for a three-bedroom semi-detached home by as much as £370 per year, highlighting the benefits of this tactic.

Many over-60s are entitled to grants towards heating and insulation improvements thanks to the government's Warm Front Scheme. Grants worth £3,500, or up to £6,000 for properties with oil central heating, can be put towards loft, cavity wall and hot water tank insulation, heating systems and other such energy-saving measures.

In addition, many energy companies operate their own discount schemes to help householders with the cost of energy-efficient home improvements. This underlines the importance of comparing gas and electricity suppliers, both to ensure the best price in the short term and to reduce the cost of long-term home improvements that will keep energy bills down in the future.

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