Skyrocketing energy prices mean pensioners will be feeling the
crunch this winter, according to new Labour analysis.
As the Tory leadership candidates tour the country offering
fantasy tax cuts to their members, their proposed plans will do
little to help pensioners, many of whom are already feeling the
impact of the ongoing cost of living crisis.
Labour analysis shows that £1 in every £5 spent by the pensioners
in this country will go on energy bills this winter.
Proposed cuts to taxation through National Insurance and income
tax will not provide respite for pensioners, who will be paying
almost triple on energy as a proportion of their overall incomes
in comparison to 2020-21.
Increases in the Ofgem price cap could mean households can expect
bills of £3,358 from October, rising to £3,615 from January.
This comes as the Bank of England forecasts one of the worst
recessions for the country since the 1990s, highlighting that
inflation could hit 13 per cent by the end of the year.
, Labour's Shadow Work
and Pensions Secretary, said:
“Pensioners up and down country are worrying about how they’ll
heat their homes this winter while Tory leadership candidates
propose fantasy tax cuts that won’t get help to those who need
it.
“12 years of Conservative inaction has already left us with a
weak economy that lacks resilience to shocks. Now they have lost
control completely and we are watching inflation skyrocket while
they sit on their hands.
“A Labour government would act now to cut bills by taxing the
huge profits made by the oil and gas producers, bring down
energy bills for good with a green energy sprint for home-grown
power, and a bring forward a 10-year warm homes plan to cut bills
for 19 million cold, draughty homes.”
Ends
Notes to editors:
- The table below illustrates the impact of inflation on the
energy bills of those who are 65+ in comparison to the median,
accounting for the £400 energy support
|
|
|
|
|
2020/21
|
65+
|
Median
|
|
Weekly expenditure on energy
|
£23.00
|
£21.90
|
|
Total weekly expenditure
|
£342.50
|
£525.80
|
|
Proportion on energy
|
7%
|
4%
|
|
|
|
|
|
2022/23
|
|
|
|
Fuel inflation
|
3.47
|
3.47
|
|
CPIH inflation
|
1.197
|
1.197
|
|
Weekly expenditure on energy
|
£79.81
|
£75.99
|
|
Total weekly expenditure
|
£409.97
|
£629.38
|
|
Proportion on energy costs
|
19%
|
12%
|
|
|
|
|
|
Accounting for £400 energy support
|
|
|
|
£7.69
|
£7.69
|
|
Weekly expenditure on energy
|
£72.12
|
£68.30
|
|
Total weekly expenditure
|
£402.28
|
£621.69
|
|
Proportion on energy costs
|
18%
|
11%
|
|
|
|
|
- Expectation for the price cap comes from analysis by Cornwall
Insight
