It has been calculated that some pensioners will not receive enough to cover their energy bills - let alone anything else - if price rise predictions for next year come to pass. It has already been announced that the price cap will rise from £1,971 currently to £3,549 for the average household from October 1.
And it is thought that worse is to come, with predictions expecting that to top £5,000 when the cap is next reviewed in January. Some predictions for the following review in April 2023 fear a cap of more than £7,000.
And, as The Telegraph has reported, that will mean those on the basic state pension will receive several hundred pounds less than the predicted cap for the average household come April, reports the LiverpoolECHO.
Energy consultancy Auxilione has forecast that energy bills will hit £7,700 from April 2023. If correct, Auxilione’s prediction could see the current price cap more than double in the new year, having already nearly trebled since October 2021 compared to October 2022.
Currently, the basic State Pension pays just £141.85 a week to those who retired before April 6, 2016. This equates to £7,376.20 a year for those who qualify for the full amount, although some will get additional State Pension on top.
That means that those on the basic state pension would be receiving £324 less than what an average energy bill could cost. That would mean pensioners who fall into that bracket having to choose between food and heat as it leaves nothing for basic everyday costs, such as eating, council tax and water.
The Government has already announced some support for this coming winter, with all households receiving a £400 discount on their bills. Those receiving certain benefits will receive further payments in an effort to ease the burden. More measures are expected to be announced by either Liz Truss or Rishi Sunak when one of them become Prime Minister next week.
