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Price Cap Shift challenged as smoke and mirrors

The Scottish Pensioners’ Forum, the campaigning organisation for older people in Scotland, welcomed the announcement that there would be some lowering of gas and electricity prices under the new Ofgem price cap but stated that ‘the overall issue is much too serious for smoke and mirrors”

SPF Chairperson, Rose Jackson stated:

“Ofgem’s recent announcement fails to address the real affordability issue for pensioners when it comes to heating and lighting their homes. The paltry reduction in the price cap must be considered against the backdrop of the Government’s Energy Support Scheme being pulled – people are still worse off!

“The price cap does not affect the daily standing charges that every consumer has to pay, no matter how much energy is consumed, how many people live in a property nor their income. Overall, standing charges represent a disproportionate element of the energy bills of pensioners who typically live in single or two-person households.”

Standing charges on energy bills are a fixed cost and represent a greater share of pensioners’ fuel bills than in many other households – an issue that the Scottish Pensioners’ Forum has been campaigning on for many years.

“Standing charges increased by more than 40% in April to cover the number of smaller suppliers going out of business, and although this factor has now reduced, standing charges have still managed to increase by 10% - how can this be right?

“Unfortunately, one small price cut will not mark the end of the UK’s energy crisis. For too many pensioners, as well as the most vulnerable within our society, the choice between eating and heating continues to be all too real.”

26th May 2023