Two million pensioners don’t have enough savings to cover rising energy bills this year, says Labour

Two million pensioners don’t have enough savings to pay for this year’s rise in energy bills, new analysis from Labour shows. 

The figures come ahead of the biggest real terms cut to the state pension in 50 years on Monday, 11 April.

Average yearly energy bills rose by nearly £700 last week, and experts are warning they could rise by another £630 in October.

• New figures show that thirty per cent of single pensioner households and nearly one in five pensioner couple households have savings of £1,500 or less, leaving millions of pensioners without the savings needed to cover the unexpected and significant jump in bills they now face.

• The figures show that around two million pensioners live in households where the level of savings is lower than this year’s increase in energy bills.

On Monday, pensioners will also be hit for the second time this month as the biggest real terms cut to the state pension in almost fifty years comes into effect.

Labour is calling on the Government to take immediate action to support pensioners and cut home energy bills by up to £600 through a one-off windfall tax on oil and gas companies.

Alongside soaring price rises and rising energy bills, Labour has today warned that pensioners are at the sharp end of the Tory cost of living crisis, facing impossible choices to deal with rising bills.

Jonathan Ashworth MP, Labour’s Shadow Work and Pensions Secretary, said:

“The simple truth is Boris Johnson has betrayed Britain’s retirees.

“Not only have the Conservatives just imposed the biggest real terms cut to the state pension in 50 years, but they’ve done little to help the two million pensioners left high and dry without adequate savings who are now struggling with rocketing heating bills. 

“With older people facing impossible choices, it’s time the Government adopt Labour’s costed plan to bring down energy bills.”

Ends

Notes to wditors:

• Energy bills rose by nearly £700 last week and could rise by another £630 in October.

‘Warning of fresh energy bill shock in October as prices rise again’, BBC News, 2 April 2022

• Labour analysis using the DWP’s ‘Family Resources Survey’ and ONS statistics on the number of households estimates that around two million pensioners live in households that have savings and investments of £1,500 or less.