Rising energy bills put elderly in debt (From Swindon Advertiser)

Rising energy bills put elderly in debt

7:27pm Sunday 11th September 2011 in News By David Wiles

Linda Hobson is among the many people who are falling into debt

GRANDPARENTS Linda and Andy Hobson are already struggling with energy prices and will consider releasing some equity on their home if they rise further.

And they’re not the only people in the town suffering. According to charity The Advice Point, soaring fuel costs from energy companies are forcing more over-55s into debt than ever.

The charity, based in Cavendish Square, Park South, says rising gas and electricity bills mean some people either end up in debt or have to take on more borrowing.

Linda, 64, of Penhill, who has terminal chronic obstructive pulmonary disease, said she spends about one third of her income on energy bills and cannot take another hit.

“If it increased again it would start to make a difference. I wouldn’t be able to afford it,” said Linda, who receives a state pension and disability living allowance.

“All my disability living allowance basically goes on the gas, the electric, and the council tax and the other rates. We just about manage at the moment, that’s all.”

Linda, who worked as a social services care officer, said she would never consider going into debt or turning off the heating, but things are getting tight now.

She said: “We haven’t gone without but we do keep an eye on things more than we used to.”

The big energy firms have announced substantial bill increases again this year, with Npower warning customers that from October gas bills will rise by 15.7 per cent and electricity by 7.2 per cent.

Karen Turner, a money advice supervisor at The Advice Point, said older people can go into debt for a number of reasons.

She said: “In some cases they are being pushed into debt by fuel costs. Clients come just with gas and electricity arrears, especially if they are on small incomes.

“In the last two years as far as I’m concerned, there’s been a huge increase in the number of people who are cutting back – and their heating especially – so that they cannot get into debt.”

Karen said about 25 per cent of her clients are aged over 55 and she has seen older people with debts ranging from a few thousands of pounds to a man whose mortgage shortfall and other debts was more than £150,000.

The Advice Point runs a free over 55s drop-in clinic every Tuesday from 10.30am-12.30pm.

National debt charity the Consumer Credit Counselling Service (CCCS) has also revealed that people aged over 55 contacting the service owed an average of £30,162 last year. This figure, which relates to credit cards, loans and other unsecured debts, compares to a UK average of £24,397.

Matt Hartley, a spokesman for CCCS, said: “Absolutely it’s going up. A lot of older people are struggling, particularly with all the gas and electricity bills. All this chips away at people’s ability to pay back what they owe. The most important message is to seek free advice from a debt charity as quickly as possible. There should be no need to pay for advice.”

The CCCS believes the debt situation among over 55s may lead to increasing numbers of retired homeowners following Linda and Andy’s lead and considering releasing equity from their homes.

For more information call CCCS on 0800 138 1111 or log on to at www.cccs.co.uk. For the Advice Point call 01793 487934.