Friday, 16 December 2011

Older people suffering under 'poorly publicised' fuel poverty scheme

Tea's up … but so are energy bills – and older people are struggling. Photograph: Ian Shaw/Alamy

Thousands of older people may be left in the cold this winter because the government's fuel poverty scheme is poorly publicised and too complicated, according to a leading pensioners' group.

The National Pensioners' Convention (NPC), which has 1.5 million members, has criticised the government's Warm Home Discount (WHD) scheme in the wake of statistics released by the Office for National Statistics which show there were 25,700 excess winter deaths last year.

Under the programme, participating energy suppliers hand cash-strapped pensioners a £120 yearly rebate on their bill. But the "big six" energy companies and the government are failing to publicise the scheme sufficiently, meaning many pensioners are unaware they could benefit, according to the NPC.

For the first year of the scheme, which the government says is worth up to £1.1bn over four years, only older people on pension credit – worth £137.35 a week – are eligible for the yearly rebate, while participating energy suppliers have discretion to extend support to those on low incomes.

NPC's general secretary Dot Gibson said: "There has not been enough publicity about the scheme – it's too complicated and pensioners are unsure whether they qualify for extra help or not.

"The cost of fuel is rising and the government's cut to the winter fuel allowance means pensioners need all the help they can get to keep warm this winter – yet neither the government nor the 'big six' energy companies seem particularly bothered about letting people know what help is available."

The NPC is calling for energy companies to adopt broader criteria so that more vulnerable pensioners can benefit from the scheme. Three companies – EDF, npower and Scottish Power – only offer the rebate to people who are disabled, while British Gas closed the wider support scheme on 11 October, meaning new customers will miss out.

E.ON has also closed the wider scheme to new customers, while EDF appears to be the only company that has written to customers notifying them of the WHD programme.

While British Gas did offer support to those on lower incomes, E.ON and Scottish and Southern Energy only provide help for those on pension credit guarantee, guarantee and savings, or just the savings element of pension credit.

The Department for Work and Pensions also came under fire after making no mention of the fact that people may be eligible for WHD in recent letters sent about the winter fuel allowance.

A spokesman for the DWP said it was not their responsibility to mention the scheme, but the duty of the Department of Energy and Climate Change. He said: "Eligibility for the Warm Home Discount rebate and the winter fuel payment are entirely different, and it would not be appropriate to refer to the Warm Home Discount in a letter notifying a much wider group of people that their winter fuel payment has been sent."

However, the DECC has yet to send pensioners any information about the programme, publishing only a statement on its website. However, in a statement it said: "This year nearly 600,000 pensioners will be notified by Christmas that £120 will be paid automatically into their account – this is the beauty of the Warm Home Discount scheme as most pensioners don't need to lift a finger to claim because the hard work is done for them.

"Energy companies will also be required to help more than just the poorest pensioners too – they will need to identify other vulnerable people they can help like the terminally ill or disabled. Suppliers will also be spending more money than previouslym – last year the voluntary agreement was worth £179m and this year they will spend £250m."

The NPC point out that many pensioners do not use the internet, leaving them unaware that they may benefit. "It is no good simply relying on a message on a website when the vast majority of older people don't even own a computer," Gibson said.

By 2014 the government plans to roll out the scheme so that all households in receipt of the guarantee and savings element of pension credit are eligible.

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