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Older people on low incomes must be protected from rising fuel prices

Date published: 
Friday, May 16, 2008
News source: 
Age Action Ireland
Region: 
Republic of Ireland

Age Action has urged the Government and energy providers to take steps to ensure that vulnerable older people are protected from rising fuel prices, so that they can afford to heat their homes this winter.

Age Action’s comments in the wake of confirmation that Bord Gais is seeking approval from the Commission for Energy Regulation for a 17-19% rise in gas prices.  If approved, the price rise would be introduced from October.

“In the absence of additional support, this price increase, along with expected rises in the price of other fuels, will result in severe hardship for the poorest of pensioners, especially those living alone and in poorly insulated homes,” Age Action spokesman Eamon Timmins said.

The price of home heating oil rose by 35% last year, while bottled gas and solid fuels rose by over 5%. The price of natural gas and electricity fell (5% and 8%) over the 12 months to April 2008. However, pensions struggling to stay warm received no increase in their fuel allowance in Budget 08 (although pensioners received the payment for an extra week). The fuel allowance was increased by just €4 by Budget 2007.

Overall, 7.5% of all pensioner households experience fuel poverty, which equates to 16,300 households. 

Age Action fears that many older people depending solely on the State Pension (Non-Contributory) of  €212 a week or the State Pension (Contributory) of €223.30 will not be able to afford major price increases this winter.

Age Action believes that a significant increase in the fuel allowance is needed in this year’s Budget. “The problem is that increases in allowances made in the Budget in December are not paid until January – which is of limited value to people in the middle of the winter,” Mr Timmins said. 

Age Action believes energy providers can play their part in easing hardship for pensioners by deferring any increased charges until after the Budget.  They can also work to promote weekly payment schemes for low-income customers to help them budget for the increased cost of fuel during the winter.

The Department of Environment and Local Government provides the Special Housing Aid for Older People scheme to prolong the life of houses for older occupants, by upgrading the fuel efficiency of their homes. An expansion of this scheme must be part of a longer term solution to the issue of fuel poverty among older people.

FOR FURTHER INFORMATION CONTACT EAMON TIMMINS, HEAD OF ADVOCACY AND COMMUNICATIONS, AGE ACTION. 01-4984746 OR 087-9682449.

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