EDF Energy last week became the final one of the Big Six suppliers to reveal inflation-busting increases.
Yet Your Money can reveal a bid to ease the pain of rocketing bills will ignore millions of families who need help the most.
Experts fear this year’s double dose has plunged another 840,000 households into poverty, leaving 6.9 million with a daily struggle to afford heating. Until now, suppliers tried to lessen the blow by offering cheap-rate deals – known as social tariffs – to those facing hardship.
In 2009/10, firms provided an average discount of £84 each to 1.6 million customers. But many people don’t know they exist and suppliers have different rules on who qualifies.
To tackle this, the Government has launched the Warm Home Discount, setting legal targets for suppliers to help the most needy.
Under the scheme, costing £1.1billion over four years, those deemed the most vulnerable will automatically get electricity rebates of £120 in the first year, eventually rising to £140.
You don’t have to apply, instead letters will be sent to those who qualify, with the money credited to accounts by next March. There are different arrangements for pre-payment meter customers.
The vast majority of people getting help – more than 600,000 households – are pensioners, the Department of Energy and Climate Change said.
Yet only households who get the guarantee element of pension credit will receive the money this winter.
Pensioners who only get the savings element, because they’ve put money aside, won’t get the rebate until later years, depending on age.
PAYMENTS
The boost is in addition to winter fuel payments for pensioners.
This will see households with someone under 79 get £200 this year, down from a temporary jump of £250 last year.
For those over 80, the amount is down from £400 to £300.
It’s also in addition to cold weather payments that older people (along with disabled households and families with children under the age of five on income-related benefits) get in extreme conditions during the worst months of the year.
But, while the scheme is a positive step, critics are worried about the many others facing a bleak winter.
Industry regulator Ofgem is talking to suppliers about how to provide emergency help but the DECC admits as few as 26,000 households in what it calls a “broader group” will get the £120 rebate this year.
This will rise to 650,000 by 2014/15 but they will have to apply rather than get the rebate automatically.
Yet it’s a fraction of those struggling to make ends meet, with campaigners fearing this year’s price hikes will leave as many as 12 million people in “fuel poverty” – defined as spending at least 10% of their income on energy.
The automatic rebates for pensioners came after the Department for Work and Pensions shared information with suppliers about who is in need.
SHARING
There are growing calls for this data sharing to be extended to ensure all those who need help, get it.
Fiona Weir, chief executive of single parent group Gingerbread, said: “We get a lot of calls from single parents who are struggling in fuel poverty, which is why it is so disappointing that single parents are not prioritised under the Warm Home Discount.
“With high inflation and an ongoing squeeze on household budgets, many single parents find it difficult enough to make ends meet on a day-to-day basis – let alone when a huge energy bill drops on to the doormat.”
Age UK spokesman Mervyn Kohler said: “It’s a step in the right direction but pension credit is a means-tested benefit that people have to apply for and we know about one third of people entitled haven’t done so.
“And while the £120 is welcome, that’s exactly the average amount that pensioners will see their bills rise by after the price increases that have just been announced.”
Helen Dent, chief executive of Family Action, said: “We want to see the Government ensuring this help is better targeted and more available to low income, disadvantaged and vulnerable families and individuals.
“As we know from the results of our Energy Saving Advice scheme in Bradford, fuel poverty is an issue that is only going to get worse as we see rising energy prices.
DEAL
“We want to see more measures to protect the poorest from energy price rises so that families aren’t sitting in the cold this winter.”
Suppliers’ trade body the Energy Retail Association says social tariffs will be offered for the next four years, so those who don’t get rebates at first still benefit from cheaper deals. Policy adviser Alun Rees said: “The rebates are just one way of helping those in fuel poverty. Another is energy efficiency and suppliers will have invested £5.5billion in providing things such as insulation by the end of 2012.”
EDF Energy will raise gas prices by 15.4% and electricity by 4.5% in November, following recent hike announcements by British Gas, npower, E.ON, Scottish Power and Scottish & Southern Energy.
Since November, suppliers have increased average prices by £224, or 21%, leaving the typical family facing an annual bill of nearly £1,300.
Tom Lyon, energy expert at comparison website uSwitch.com, said: “You cannot have two consecutive rounds of energy price hikes in less than a year without seeing casualties.
“The visible victims are the 6.9 million, or over a quarter of all households, now living in fuel poverty, but they are more than matched by those who struggle to pay their bills and are starting to self-ration their usage.
“We are in danger of seeing energy becoming an unaffordable luxury instead of a household basic.
“My concern is the impact will really become apparent this coming winter.
“We cannot underestimate the effect of higher household energy prices – for many it will involve a complete shift in attitude and behaviour.”
Yet Your Money can reveal a bid to ease the pain of rocketing bills will ignore millions of families who need help the most.
Experts fear this year’s double dose has plunged another 840,000 households into poverty, leaving 6.9 million with a daily struggle to afford heating. Until now, suppliers tried to lessen the blow by offering cheap-rate deals – known as social tariffs – to those facing hardship.
In 2009/10, firms provided an average discount of £84 each to 1.6 million customers. But many people don’t know they exist and suppliers have different rules on who qualifies.
To tackle this, the Government has launched the Warm Home Discount, setting legal targets for suppliers to help the most needy.
Under the scheme, costing £1.1billion over four years, those deemed the most vulnerable will automatically get electricity rebates of £120 in the first year, eventually rising to £140.
You don’t have to apply, instead letters will be sent to those who qualify, with the money credited to accounts by next March. There are different arrangements for pre-payment meter customers.
The vast majority of people getting help – more than 600,000 households – are pensioners, the Department of Energy and Climate Change said.
Yet only households who get the guarantee element of pension credit will receive the money this winter.
Pensioners who only get the savings element, because they’ve put money aside, won’t get the rebate until later years, depending on age.
PAYMENTS
The boost is in addition to winter fuel payments for pensioners.
This will see households with someone under 79 get £200 this year, down from a temporary jump of £250 last year.
For those over 80, the amount is down from £400 to £300.
It’s also in addition to cold weather payments that older people (along with disabled households and families with children under the age of five on income-related benefits) get in extreme conditions during the worst months of the year.
But, while the scheme is a positive step, critics are worried about the many others facing a bleak winter.
Industry regulator Ofgem is talking to suppliers about how to provide emergency help but the DECC admits as few as 26,000 households in what it calls a “broader group” will get the £120 rebate this year.
This will rise to 650,000 by 2014/15 but they will have to apply rather than get the rebate automatically.
Yet it’s a fraction of those struggling to make ends meet, with campaigners fearing this year’s price hikes will leave as many as 12 million people in “fuel poverty” – defined as spending at least 10% of their income on energy.
The automatic rebates for pensioners came after the Department for Work and Pensions shared information with suppliers about who is in need.
SHARING
There are growing calls for this data sharing to be extended to ensure all those who need help, get it.
Fiona Weir, chief executive of single parent group Gingerbread, said: “We get a lot of calls from single parents who are struggling in fuel poverty, which is why it is so disappointing that single parents are not prioritised under the Warm Home Discount.
“With high inflation and an ongoing squeeze on household budgets, many single parents find it difficult enough to make ends meet on a day-to-day basis – let alone when a huge energy bill drops on to the doormat.”
Age UK spokesman Mervyn Kohler said: “It’s a step in the right direction but pension credit is a means-tested benefit that people have to apply for and we know about one third of people entitled haven’t done so.
“And while the £120 is welcome, that’s exactly the average amount that pensioners will see their bills rise by after the price increases that have just been announced.”
Helen Dent, chief executive of Family Action, said: “We want to see the Government ensuring this help is better targeted and more available to low income, disadvantaged and vulnerable families and individuals.
“As we know from the results of our Energy Saving Advice scheme in Bradford, fuel poverty is an issue that is only going to get worse as we see rising energy prices.
DEAL
“We want to see more measures to protect the poorest from energy price rises so that families aren’t sitting in the cold this winter.”
Suppliers’ trade body the Energy Retail Association says social tariffs will be offered for the next four years, so those who don’t get rebates at first still benefit from cheaper deals. Policy adviser Alun Rees said: “The rebates are just one way of helping those in fuel poverty. Another is energy efficiency and suppliers will have invested £5.5billion in providing things such as insulation by the end of 2012.”
EDF Energy will raise gas prices by 15.4% and electricity by 4.5% in November, following recent hike announcements by British Gas, npower, E.ON, Scottish Power and Scottish & Southern Energy.
Since November, suppliers have increased average prices by £224, or 21%, leaving the typical family facing an annual bill of nearly £1,300.
Tom Lyon, energy expert at comparison website uSwitch.com, said: “You cannot have two consecutive rounds of energy price hikes in less than a year without seeing casualties.
“The visible victims are the 6.9 million, or over a quarter of all households, now living in fuel poverty, but they are more than matched by those who struggle to pay their bills and are starting to self-ration their usage.
“We are in danger of seeing energy becoming an unaffordable luxury instead of a household basic.
“My concern is the impact will really become apparent this coming winter.
“We cannot underestimate the effect of higher household energy prices – for many it will involve a complete shift in attitude and behaviour.”
PENSIONER Bridgete Mead will miss out on this year’s rebate – despite battling to afford her fuel bill.
The widow, 75, is officially classed as living in fuel poverty as she spends £97 of her £671 a month income on gas and electricity.
That’s on top of paying other essential bills, including £21 a month for council tax, household insurance of £15 a month plus food and clothing.
But as she only gets the savings element of pension credits, she does not qualify for the extra help.
Mrs Mead, from Rochdale, said: “I was a cook all my life so I’m good at eking out food, but it’s expensive.
“Every time I go to the shops, it seems the price has gone up, and not by a few pennies – by 20p or 30p.
“That’s why having to pay so much for energy has such an impact.
“There is no way I can afford to have the heating on constantly.
“Instead, I have it on for a few hours and will watch it like a hawk.
“I have always had to budget because I had seven children, so we always had to watch the money.
“Not getting the rebate this year is a shame but it’s on top of the drop in the winter fuel payments, so it all adds up.”
The widow, 75, is officially classed as living in fuel poverty as she spends £97 of her £671 a month income on gas and electricity.
That’s on top of paying other essential bills, including £21 a month for council tax, household insurance of £15 a month plus food and clothing.
But as she only gets the savings element of pension credits, she does not qualify for the extra help.
Mrs Mead, from Rochdale, said: “I was a cook all my life so I’m good at eking out food, but it’s expensive.
“Every time I go to the shops, it seems the price has gone up, and not by a few pennies – by 20p or 30p.
“That’s why having to pay so much for energy has such an impact.
“There is no way I can afford to have the heating on constantly.
“Instead, I have it on for a few hours and will watch it like a hawk.
“I have always had to budget because I had seven children, so we always had to watch the money.
“Not getting the rebate this year is a shame but it’s on top of the drop in the winter fuel payments, so it all adds up.”
RABINA Shakil has already been forced to trim her food bill to afford heating – and fears the new price hikes.
Mrs Shakil, 52, spends £191 a month – more than a fifth of her household income – on gas and electricity, which includes debts that built up.
Due to illness, and having to look after a grown-up son with learning difficulties, she relies on benefits.
Yet despite her predicament, she does not receive discounted energy, has never heard of social tariffs and is unlikely to receive help via the Warm Home Discount this year.
“Things were made worse when the boiler broke down and cost £500 to fix,” explained Mrs Shakil, of Bradford, who has another adult son living at home.
“I’m repaying it at £100 a month, which takes a big chunk out of the budget.
“I don’t understand why prices have risen so fast at the same time as benefit cuts.”
Mrs Shakil, 52, spends £191 a month – more than a fifth of her household income – on gas and electricity, which includes debts that built up.
Due to illness, and having to look after a grown-up son with learning difficulties, she relies on benefits.
Yet despite her predicament, she does not receive discounted energy, has never heard of social tariffs and is unlikely to receive help via the Warm Home Discount this year.
“Things were made worse when the boiler broke down and cost £500 to fix,” explained Mrs Shakil, of Bradford, who has another adult son living at home.
“I’m repaying it at £100 a month, which takes a big chunk out of the budget.
“I don’t understand why prices have risen so fast at the same time as benefit cuts.”
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