Challenges of Living on a Fixed Income
Many older people have contacted the Commission to tell us of the financial struggles they are facing due to living on a fixed income. These have covered all areas of the financial spectrum from pensions and benefits to rising fuel prices and facing a drop in earnings through being forced to retire at 60 or 65. Also with the worldwide economic crisis, many older people are now concerned about their savings, built and maintained throughout their working lives, and whether falling interest rates will impact on their retirement plans.
“The definition of fuel poverty is when a household needs to spend more than 10% of their household income on all domestic fuel use including appliances to heat their home to an adequate level of warmth.” (www.carbondescent.org.uk/glossary.php)
Older people have voiced their concern about being able to afford to heat their homes following the recent rises in energy costs.
On a positive note, the Commission has received many letters and phonecalls from older people who have had new heating systems installed in their homes thanks to the scheme and wanted to contact the Commission to convey their appreciation and thanks.
In response to the high level of enquiries received expressing concerns surrounding rising fuel and energy costs, the Commissioner held an Energy Summit in November 2008. Concerns over pressure sales and confusing information from energy companies, along with queries about eligibility for cold weather and winter fuel payments were high on the minds of the older people that contacted us, making the stark decision between eating and heating a reality for many.
The Summit brought together advocacy and advice organisations, the Pension Service, as well as Jane Davidson AM, Minister for the Environment, Sustainability and Housing, to focus on identifying some immediate actions that could have a practical impact on these issues.
"I received a letter from my energy supplier to tell me my energy bill was going up by 29%...This is a huge blow to me and it really will be a question of food or heat."
An Older Person, South Wales
"The gas company has recently increased my direct debit payment from £30 to £72 a month because of the gas used over the winter period…At this price I shall be unable to heat my property, nor will thousands of other people."
An Older Person, South Wales
During early 2009, the Commission was pleased to work in partnership with Care & Repair Cymru to send a joint letter to all those over 60 that Care & Repair has helped over the last six months. It encouraged older people to seek advice on how they may be able to reduce their fuel bills.
The letter raised awareness of the HOMEHEAT HELPLINE, where specialist advisers give advice and are also able to transfer callers directly through to the right department of their gas and electricity supplier who in turn can register them as a priority customer, offer energy efficiency advice and advise of the best (cheapest) tariff for the customer.
You can contact the HOME HEAT HELPLINE on 0800 33 66 99. For more information, you might find it useful to have a look at the HOMEHEAT HELPLINE website - www.homeheathelpline.org.uk.
"I had been having some trouble with my energy supplier and the helpline helped me gain reimbursement. I am very grateful."
An Older Person,
South Wales
"The service was excellent in both departments…Thank you for your kind consideration."
An Older Person, South Wales
"I am receiving letters and emails every day from people who are concerned about the cost of heating their home. The global rise in fuel prices is no fault of older people and they should not have to live in fear of the cold or have to choose between heating and eating during the winter months." Ruth Marks, Older People’s Commissioner
The Commission has heard from thousands of older people, many of whom have concerning troublesome stories to tell. The reduction in interest rates, the rise in fuel and council tax bills all serve to diminish what is often, at best, a fixed income.
The Commission liaised with the Pension Service to send a joint mailing during 2009 to every person of pensionable age in Wales. The letter raised awareness of the role of the Commissioner and encouraged older people to seek expert advice to assist them to maximise their income level. Ruth Marks states “Many people have already contacted me about the difficulties they are experiencing of living on a fixed income. I hope to encourage older people to check that they are receiving their maximum income entitlement”.
Contact the Pension Service for advice on how to ensure you are receiving your maximum income entitlement:
English language - 0845 60 60 265
Welsh language - 0845 60 60 275
Textphone - 0845 60 60 285
The Pension Service offers a personal home visiting service to discuss matters face to face.
"If we had a proper and reasonable basic state pension then all the other problems would be solved."
An Older Person,
South Wales
"The cut-off points for tax and benefits are sometimes unfair, and people just above the cut-off point are often worse off than the people below."
An Older Person,
Mid Wales
"Fuel for people using bottled gas, which was £40 for two bottles five years ago, is now £94.68. In winter two bottles last 2-3weeks used carefully. Our pensions need to be improved in accordance to living costs."
An Older Person,
North Wales
"The current financial crisis makes it even harder to put money aside for retirement."
An Older Person,
South Wales
"It is a continuous struggle to make ends meet - £5 a year rise (in pension) is insufficient."
An Older People,
Mid Wales
"Undoubtedly the biggest problem for most pensioners is the level of pensions."
An Older Person,
South Wales