Older People Up To £50,000 Out Of Pocket, UK

Main Category: Seniors / Aging
Article Date: 30 Nov 2007 - 5:00 PDT

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New research from the London School of Economics, for the British Gas Help the Aged Partnership's winter deaths campaign, reveals individual pensioners could be losing up to £50,000 in benefits over a lifetime by not claiming their entitlements (1).

These benefits currently sit in the Government's pot of £4.5 billion unclaimed benefits for older people, but 1 in 3 pensioners are not aware of who to turn to for help and advice on how to access these entitlements (2) which could amount to between £5,000 and £50,000 per individual over a lifetime (3).

While the Government sits on this unclaimed jackpot of benefits, it is set to fail its duty in law to eradicate fuel poverty in vulnerable households by 2010, with over one million pensioner households living in fuel poverty - a major cause of preventable winter deaths (4).

The new research supports the Partnership's call for the Government to end fuel poverty and save lives in winter by introducing the automatic payment of benefits and investing more in face-to-face benefits advice programmes. It finds that around 50% of those eligible for additional benefits could receive enough financial support to cover all their heating costs which would lift them out of fuel poverty (5).

The research also shows that for older people face-to-face advice services are most effective. Evidence from the face-to-face British Gas Help the Aged Benefits Advice Programme shows that one in five older people who accessed the projects were found to be eligible for around £50 per week in additional benefits - around 66% more in cash than a similar benefits service that provides advice over the phone. Additionally, as 80% of the benefits identified through the British Gas Help the Aged Benefits Advice Programme are disability entitlements, the study strongly suggests that face-to-face benefits advice is needed to ensure older people with disabilities are receiving the benefits they are entitled to (6).

In response, as part of the Partnership's campaign, older campaigners throughout the country will kick-start a winter long effort to help other older people claim the vital benefits needed to keep warm and well in the winter on Friday 30 November.

Around 10,000 older people are expected to write, send or hand deliver free Partnership greeting cards to older family members or friends. The card includes a voucher for a free Department of Work and Pensions benefits check that gives the recipient access to three main benefits: Pension Credit, Housing Benefit and Council Tax Benefit.

British Gas Help the Aged Partnership spokesperson Anna Pearson explains, 'Recent research by the British Gas Help the Aged Partnership revealed that over one million older people cut back on food to cover their heating costs *. If the Government is serious about meeting its fuel poverty commitment it must stop gambling with the lives of older people in winter and recognise its current strategy for delivering benefits is completely off the mark.

'This Friday, older campaigners throughout the country will join the British Gas Help the Aged Partnership's campaign in its greeting cards day to encourage older people to make a claim and beat the Government at its own benefits game. With individual pensioners possibly eligible for up to £50,000, our message to older people is: you've got to claim it to gain it!'

The Partnership is encouraging all older people to get a benefit check this winter, even if entitlements are already being received, as benefits and schemes constantly change along with an individual's eligibility. Older people should also check which assistance is offered by their energy supplier. For example, just one benefit such as Pension Credit will now make an older person eligible for the British Gas social energy tariff, Essentials, which allows eligible customers to benefit from the lowest available standard tariff and helps them cut down on gas and electricity bills.

In addition, the British Gas Energy Trust can provide grants to help individuals and families in need to meet arrears of energy charges - whoever their supplier.

To download a free greeting card for yourself or an older person you know visit here.

Notes:

1. Based on a 65-year-old woman claiming £50 per week in additional benefits for the remainder of her expected lifetime or, alternatively, a 75-year-old women claiming £80 per week in additional benefits. For further details, see 'Maximising the Benefits: An analysis of British Gas' benefit health check programmes, Tom Sefton, London School of Economics, November 2007.

2. ICM interviewed a random sample of 1171 adults aged 60+ from its telephone panel between 12th - 21st October 2007. Surveys were conducted across Britain and the results have been weighted to the profile of all adults. ICM is a member of the British Polling Council and abides by its rules. Further information at http://www.icmresearch.co.uk

3. Maximising the Benefits: An analysis of British Gas' benefit health check programmes, Tom Sefton, London School of Economics, November 2007.

4. Fuel poverty indicators 2006, Department of Trade and Industry, 2006, headline indicator 1 and Help the Aged estimated figures for pensioners.

5. Maximising the Benefits: An analysis of British Gas' benefit health check programmes, Tom Sefton, London School of Economics, November 2007.

6. Maximising the Benefits: An analysis of British Gas' benefit health check programmes, Tom Sefton, London School of Economics, November 2007.

The British Gas Help the Aged Partnership

Since the British Gas Help the Aged Partnership began campaigning on the issue of avoidable winter deaths, the Government has made some progress in tackling the underlying issues, including a promise to increase investment in schemes such as Warm Front by £300 million over three years. The Government will have spent £1billion on its heating and insulation scheme Warm Front by 2010. The scheme has been reformed recently so that now all eligible households receive assistance with the installation of better central heating systems, insulation and energy efficiency measures.

In addition to highlighting the disgrace of the UK's winter deaths through campaigning, the British Gas Help the Aged Partnership continues to deliver practical advice and support. In 2003 the Partnership set up a Benefits Advice Programme, which now runs in 26 locations throughout the UK, helping older people on low incomes or poor health access their benefits. During the campaign four new Benefits Advice Programmes will be launched in Stevenage, North Greenwich and North Bexley, Luton and Thanet and open days will be held at existing Programmes in Neath, North Lincolnshire and Glasgow.

British Gas Help the Aged Benefits Advice Programmes work in the following areas: Barking and Dagenham, Barrow and District, Basildon and South Essex, Bedford and District, Caithness, Ceredigion, Dorchester, Dumfries & Galloway, Eastbourne, East Glasgow, Hull, Kirklees and Lindsey, Luton, Neath Port Talbot, Newcastle, North East Wales, North Lincolnshire, Preston and South Ribble, Rotherham, Sandwell, Southwark and Lewisham, Tyneside, Warwickshire , Weymouth and Portland and Wymondham, Attleborough and District.

About Help the Aged

Help the Aged is the charity fighting to free disadvantaged older people in the UK and overseas from poverty, isolation and neglect. It campaigns to raise public awareness of the issues affecting older people and to bring about policy change. The charity delivers a range of services including information and advice, home support and help in difficult times that are supported by its fundraising activities and paid for services. Help the Aged also funds vital research into the health issues and experiences of older people to improve the quality of later life.

About British Gas schemes for vulnerable people

Essentials Tariff

British Gas has introduced the UK's largest social energy tariff, Essentials, which is aimed at cutting gas and electricity bills for 750,000 of our most vulnerable customers. Essentials provides additional help to vulnerable customers, particularly those who use prepayment meters, by offering them access to our lowest direct debit tariff rates, irrespective of their method of payment. The tariff is open to existing British Gas prepayment customers in receipt of at least one of a number of Government benefits.

British Gas Energy Trust

British Gas has already established a £10 million Energy Trust to offer help to customers who having difficulty with their energy bills and also, in cases of extreme hardship, for other utility costs such as water or telephone bills. The Trust, established in 2004, is run independently of British Gas and is a registered charity. In 2006, the Trust awarded around 4,000 grants with a total value of £1.5 million.

'here to HELP'

Working with 6 charity partners, 'here to HELP' is an innovative programme which aims to improve the lives of people living in some of the poorest communities in Britain. The scheme offers free insulation, a benefits assessment and other free products and services from our charity partners, depending on individual circumstances.

To date the scheme has signed up over 580,000 homes and has found unclaimed benefits totalling nearly £10.4 million. On average, qualifying applicants are over £1,400 a year better off as a result of the benefit health check alone.

British Gas Home Energy Care Register

The British Gas Home Energy Care Register provides essential services for some of our most vulnerable customers. Almost 560,000 customers now benefit from the service, which provides annual safety checks and specially designed appliance controls and adaptors for older people, people with disabilities and those who are chronically sick.

Home Heat Helpline

The national Home Heat Helpline was launched in 2005, offering help to customers struggling to pay their energy bills. The service is run by the Energy Retail Association and is funded by British Gas and other major energy suppliers. It gives one point of contact, connecting customers to advice and help from their energy supplier. A specialist British Gas team takes the calls from British Gas customers and connects them to the most appropriate support.

Central Heating Programme

Scottish Gas are managing agents for the Scottish Government's free central heating programme which installs new central heating systems for the elderly who are vulnerable to fuel poverty. Eligibility for the scheme is determined according to qualifying criteria based on age and benefits receipt.

http://www.helptheaged.org.uk