Age Action has warned that a significant intervention by the Government is needed this winter to protect the most vulnerable of pensioners from the soaring cost of fuel and food.

“Age Action and other organisations working with older people are gravely concerned that many thousands of older people will suffer unnecessarily this winter because they will be unable to afford to heat their homes properly,” Age Action spokesman Eamon Timmins said. “Unless the Government intervenes, many of our poorest pensioners will be left with the choice between food and fuel. This is unacceptable.”

Commenting in the light of the publication of the Exchequer figures this afternoon, Age Action said pensioners were facing a very difficult winter even before the full impact of the economic slow down was known. The Government had to ensure that adequate resources were made available to protect this most vulnerable section of society.

Home heating oil has risen 47% in the 12 months to May. This is the most common form of central heating used by older people. Bord Gais has applied to the Commission for Energy Regulation (CER) or a 17%-19% price rise from October. ESB has applied to the CER and is believed to be seeking a double-digit increase in prices.

Rising fuel prices, together with the demand for fuel crops are also among the factors which have driven up the price of essential foods for older people. In the 12 months to May, the price of flour jumped by 39%, bread (17%), milk (30%), butter (17%) and tea (11%). This has placed further pressure on the capped incomes of pensioners.

Although prices are rising at a soaring rate, pensioners have received no significant increase in the means-tested fuel allowance over the last two years. Budget ’07 gave pensioners an extra €4 per week, bringing the Fuel Allowance to €18 per week for the 29-week payment period. Budget ’08 left the fuel allowance unchanged, but extended the payment period by a week (which equates to a €0.60 increase per week for the 30 week period).


Pensioners living alone are at greatest risk among older people of fuel poverty. The Living Alone Allowance – introduced as an anti-poverty measure – has not been increased since 1996.

What is needed
Age Action believes the Government must act decisively and quickly to address this issue. While we understand that there will be pressure on revenue this year, there is a need to protect our most vulnerable older people this winter. It should:

 

• Increase the Fuel Allowance by €12 to €30 (to cover 70% of fuel costs, rather than the current 42%);
   
• Bring forward this increased payment to October. If introduced in Budget ’09 it may be too late for some older people who will not receive it until January. If needs be, this may require passing a supplementary estimate;
• Increase the Living Alone Allowance by €7.70 to bring it to €15.40, with a pro-rata increase in the over-80 allowance;
• Ensure that value of the gas discount in the Household Benefit Package reflects the rise in the price of gas;
• Front-load the Government’s commitment to bring the State Pension to €300 by 2012 in order to provide some protection to all pensioners from rising food and fuel costs.
  Ring-fence the extra VAT revenue generated by the rising fuel prices, to fund increases in the Fuel Allowance;
• Give pensioners the option of receiving their fuel allowance in two lump sums in October and January. This would enable those with oil central heating systems to fill their tanks;

Time is running out

Even a significant increase in the fuel allowance in December’s Budget may come too late for some older people who may not be able to endure some of the coldest months of the year before any such increased payment is received in January. This is why Age Action is calling for the increases to be paid in October and a supplementary budget passed, if needed.

It would be unacceptable for the most vulnerable of our society to be left facing the choice between food and heat this winter. But only strong political leadership can now avert that situation.