Older people are having to reduce their energy usage as their fuel bills soar, in a bid to stave off debt management worries.
According to the Institute for Fiscal Studies, pensioners have seen their electricity bills rise by 36per cent in the two years to April 2007, while gas bills have soared jump by 55 per cent in the same time.
The report was commissioned by charities Age Concern and Help the Aged, who warn that additional rises in the cost of fuel over 2008 woul dhave increased the burden on pensioners, and forced many to cut spending in other areas to be able to afford their bills.
The group reported that some of the elderly were even resorting to staying in bed in an effort to try and reduce the amount they spent on heating.
This comes after a recent study by Scottish Widows which illustrated that a third of pensioners still had outstanding loans and credit card debts.
With living costs having risen dramtically in recent years, eating in to any savings, many have had to use personal loans, credit cards or release equity in their property to cover rising costs.
But with the property market plummeting recently and banks refusing to loan money, many have racked up outstanding overdrafts and credit card debts to cope.
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.”
Ivan Cooper, Chairman at the UK’s leading debt management company Chiltern, said: “The debt management worries of the elderly have been increased by rising costs of energy bills in recent years.
“Unfortunately many are also still trying to help their adult children, like with deposits for a property, which hasn’t helped either.
“For many pensioners some impartial debt advice could ensure that they do not develop any serious debt problems.”
The government has claimed that it will assist the elderly with their fuel expenses though.
Minister for Energy and Climate Change, David Kidney, said: “Pensioners must not feel they can’t heat their homes this winter.
“Cuts in the wholesale costs of energy must be passed on by energy suppliers to consumers, and that’s particularly important for those on lower incomes.”
“We’re giving extra help to those households through a range of measures including Warm Front grants for insulation and heating improvements, winter fuel payments to all pensioners this winter, and we will create mandatory social price support for the poorest at the earliest opportunity.”
