How can older people heat their homes in 2022?

With the average household set to see their energy bills increase by nearly £700 a year, it’s no surprise that research from Age UK has found that three quarters of older people are worried about the rising cost of living.

24 percent even said that if their bills were to go up significantly, they would have to start choosing between heating and food.

Last year we shared our advice on how to cope with rising bills and supplier issues. However, with fuel poverty continuing to hit the elderly hardest, we’ve looked at the current financial support that’s available, if it can really make a difference, and how easy it is to claim it.

New support from the Government

On the 3rd of February 2022, the government announced that millions of households across the UK would receive up to £350 later this year, to help with rising energy costs.

It’ll come in the form of two new payments – the first being a new Energy Bills Rebate. Low income households will be eligible for an upfront discount of £200 which energy suppliers will apply to their accounts from October 2022. However, while the government will foot the bill initially, customers will have to pay this money back in £40 instalments, which can be spread over a five year period.

Households in council tax bands A to D will also be eligible for a second rebate of £150 in April. This will be paid automatically by local authorities in England, Wales, and Scotland, however it won’t need to be paid back at any point.

An additional discretionary fund will also be available for those on low incomes or who are considered vulnerable, but who live in properties outside of council tax bands A to D.

But will this help older people?

While the exact details of how the £200 energy discount will work are fairly sparse at the moment, it was announced that the scheme will be open to all domestic energy customers – suggesting those of pension age will be eligible.

However, concerns have been raised about whether older people already receiving some council tax relief will benefit from the £150 rebate too, as the rules have not been clarified by the government.

Older people who are already receiving a council tax discount through their pension credits may still need additional financial help to meet higher heating costs, however many organisations are concerned they may be excluded from the proposed rebate.

Unclaimed Pension Credit

According to Age UK, more than a million older people may be unaware that they’re eligible for pension credit, which provides a weekly cash top-up.

As well as increasing your pension pot, simply receiving pension credit will mean you automatically qualify for the warm home discount, the winter fuel payment, and cold weather payments, which could help you access an additional £440+ a year towards your heating bills.

You may think that having savings or owning your home may rule you out, but this often isn’t the case. And, even if your pension is above the weekly threshold of £177 for a single person or £270 for a couple, you may still be entitled to a small top-up payment.