Calls for discounted tariffs on water and energy bills as price cap hike looms

A group is calling for "swift action" from the Government to ensure pensioners have enough to live on.

By Nicholas Dawson, Finance Reporter based in London, covering personal finance with a focus on the state pension and retirement planning.

A man checks his bills

Energy bills are increasing in October (Image: Getty)

The Government has been urged to bring in social tariffs for water and energy bills as rates are set to hike in October.

The new price cap announced on Friday means energy bills will increase 10 percent from October, with average bills increasing £149 a year.

Joanna Elson, chief executive at Independent Age, urged: "To prevent people in later life being forced to make dangerous cutbacks on usage, we are calling on the UK Government to implement single social tariffs for energy and water bills.

"Current social tariffs provided by individual water companies do offer social tariffs which provide vital support to people living in poverty.

"But the postcode lottery means that people living in financial hardship across England and Wales pay vastly different amounts, and many simply can’t afford the high costs."

All water suppliers offer social tariffs for those in need, offering up to 85 percent off bills.

Some suppliers offer caps on the total you pay while others reduce your bills by a set amount for the year. You can view the list of social tariffs on the Consumer Council for Water website.

Ms Elson also called for more help for elderly Britons. She said: "We urge the UK Government to take swift action to ensure that older people on a low income receive all of the financial support they are entitled to.

A woman checks her finances

Energy bills are increasing in October (Image: Getty)

"Support like Pension Credit, Housing Benefit and Council Tax Reduction can make a huge difference to people’s lives, yet we know that too many are still missing out.

"This is even more crucial now that millions who are eligible but not yet receiving Pension Credit will now lose their Winter Fuel Payment."

She also said there need to be a cross-party review into what constitutes an adequate income in later life "to avoid poverty and put in place plans to ensure everyone has enough money to live on in later life".

DWP figures suggest more than 800,000 people are missing out on Pension Credit when they could be claiming.

The benefit tops up a person's income up to £218.15 for single claimants and up to £332.95 for couples.

Other payments are available if you care for another adult or if you have a severe disability.

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