Pensioners struggle with fuel bill increases

MONDAY, SEPTEMBER 11, 2006

A new survey has found that a quarter of those over 56-years-old are struggling to pay their debts on their utility bills. Following recent sudden increases in energy prices, many pensioners (2.5 million) are having difficulty making ends meet, Money Expert has found.

These figures are all the more startling when compared to the other group that might be expected to struggle with paying their debt: the 25 to 34-year-olds. However, only 14 per cent of this age group claimed to be in difficulty.

The findings support recent findings by Prudential that pensioner inflation (the rate at which daily expenses are increasing for those on a pension) is much higher than retail inflation (3.5 per cent compared to 2.5 per cent).

According to Money Expert, the average fuel bill has increased by about 40 per cent over the last 12 months. "There have been around a dozen fuel price increases since the beginning of this year and these have hit many homes hard," said Sean Gardner, chief executive at Money Expert.

"Those hardest hit with debt problems are pensioners where already one in five is below the poverty line. Rising fuel bills, which are primarily a result of increased wholesale prices, are having a terrible effect on many homes." The online price comparison site suggests that people shop around for the best supplier in order to try and keep their bills down. Many may also be considering taking out a homeowner loan in order to free-up their income to meet bill payments.