Age UK responds to Ofgem’s price cap announcement of 7% fall in energy bills from 1 July 2025

Caroline Abrahams, Charity Director at Age UK said: “We welcome today’s announcement that energy prices are set to come down by £129 per year.  This price drop is a step in the right direction, offering some breathing room before we approach the colder months.

“While this news is encouraging, the cost-of-living pressures older people face are unrelenting. There have been significant increases to the cost of other essentials, including water, which increased by 26%, Council Tax, by 5%, as well as rises in mobile phone contracts and broadband services and the cost of groceries.

“This fall in energy prices will not undo the hardship many older people have already endured and may have to endure again this winter. Despite relatively mild weather, last winter was especially tough for pensioners who lost their Winter Fuel Payment. Pensioners, many of whom live on fixed incomes, have faced impossible choices between heating their homes and covering other essential expenses.

“The last time energy prices were at the level announced today – in January of this year – polling by Age UK revealed that 40% of pensioners said they had to cut back on heating and powering their homes. (e.g. turning off your boiler, heating your home less or turning off lights or appliances more than usual). Of the one in eight (13%) who said they cut back on ‘other’ household bills, 34% have cut back on water. This indicates reduced levels of personal washing, cleaning and cooking. One in five (21%) said they cut back on groceries.

“Without intervention, we anticipate similar, if not worse, levels of hardship next winter. There is an urgent need for the government to introduce additional targeted support measures before the winter hits.  – which may feel a long way off but is really only six months away. It could do this by reinstating broader eligibility for the Winter Fuel Payment, expanding eligibility for the Warm Home Discount and increasing funding for the Household Support Fund. Ensuring that all eligible pensioners are aware of and can access benefits like Pension Credit is also crucial, given that up to 700,000 eligible households have not claimed this support.”