13 August 2008
Rising gas and electricity costs are hitting elderly consumers the hardest, according to new research from the Alliance Trust. The financial services group points out that energy bills have increased by around 13% in the last year, with further increases predicted in the near future. In its research it found that over-75s spend almost 7% of their budget on gas and electricity, compared to just 3% for under-30s. Any increases in the cost of energy will therefore have a bigger impact on the finances of elderly households that those of younger consumers. Taking into account increases in the cost of food - to which 16.3% of the elderly household's budget is allocated - and vehicle fuel, Alliance Trust calculates that the inflation rate experienced by elderly consumers is 6.3%. Shona Dobbie, Head of the Alliance Trust Research Centre, comments: "Over-75s are facing a rate of inflation 43% higher than the official rate of inflation, which is currently 4.4%, mainly due to rising utilities and food costs which have soared over the past year." This year over-60s will receive a maximum winter fuel allowance of £250, up from £200, while over-80s will receive a maximum of £400.
© 2008 Adfero Ltd
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