Reliance on switching leaves elderly paying a premium for energy

Age Concern is warning that relying on people to switch energy suppliers will not tackle fuel poverty and is calling on the Government to take action instead to tackle unfair energy pricing in the forthcoming Pre-Budget Report.

New research from the charity shows that despite recent hikes in energy prices and efforts to encourage people to switch supplier - there has been no increase in the number of customers switching. Only one in five customers have changed their energy supplier this year - compared to 18% of customers switching previously - and around seven out of 10 households say they are unlikely to even consider switching supplier next year.

Lack of access to discounted online deals, which are often the cheapest provided by suppliers, is further penalising pensioners and other low income households who are more at risk of fuel poverty. The new research shows that pensioners are the least likely to use the internet to switch energy supplier -only 16% shop around online, compared to almost four in 10 of those aged 25-54. Low income households are also more likely to pay by pre-payment meter, cash or cheque and therefore many cannot receive discounts given to direct debit customers.

Gordon Lishman, Director General of Age Concern, said: "Relying on people to switch suppliers to get the best deal without addressing the unfairness in energy pricing is not going to help those in fuel poverty. Pensioners are the most likely group to be fuel poor, yet are less likely to switch supplier or have access to cheap online deals and many pay higher rates because they pay by cash or cheque. The Government must take urgent action to help the one in three pensioner households in fuel poverty by taking action to end these pricing inequalities in its Pre-Budget Report."

The research shows that older people are the least likely group to switch energy supplier next year - three quarters of the pensioners surveyed said they are unlikely to consider switching. Although the research showed older people are more than twice as likely to switch with independent advice than on their own, the majority are unlikely to switch because they are unsure whether it would save them any money and worry that it may actually make their situation worse.

In light of these findings, Age Concern is calling for urgent Government action in the Pre-Budget Report to end inequalities in energy pricing that mean poorer people pay more. It wants the Government to work with energy companies to reform social tariffs and remove pricing penalties for pre-payment meter and cash and cheque customers. It is also calling for a one-off payment of £100 for pensioners entitled to benefits to enable them to heat their homes this winter.