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Thousands of retirees facing energy price hikes

20 pound note plug socket representing high energy prices

Thousands of later life homeowners are facing a further squeeze on their retirement finances thanks to energy bill price hikes this month.

  • Three of the ‘Big Six’ energy providers announced price hikes in March*
  • 77 fixed energy deals set to expire before the end of April, adding around an extra £200 a year to the average household’s bills*
  • Some customers on especially cheap tariffs have been told their bills will rise by 28%*
  • EDF customers have seen their energy bills rise as prices for electricity went up by an average of 8.4 per cent from 1st March**
  • Scottish Power will increase its standard dual fuel tariff by an average of 7.8% from 31 March**

Could you save £265 on energy prices?

Three of the ‘Big Six’ energy firms are raising their standard prices this month.

It means thousands of customers locked in to fixed energy deals due to expire risk being moved to standard variable tariffs – typically the most expensive energy price plans.

Customers already on standard variable tariffs, or on fixed deals due to end soon, may wish to spend some time comparing prices online before the best deals for cheap fixes come to an end.

It’s been estimated by the MoneySavingExpert website that energy customers with EDF, Npower and Scottish Power could save around £265 per year. If you’re with a ‘Big Six’ supplier yet to announce price hikes, you could save around £220 per year on current prices.

Energy customers looking to switch to a better deal can get quotes in just a few minutes using comparison sites such as uSwitch, MoneySupermarket and GoCompare.

Why retirees are hit harder by hikes

Those of us in retirement may well feel the effects of the energy price hikes more than our younger generations.

Energy bills often take up a larger percentage of our outgoings, as we generally spend more time at home in retirement than we did when we were out working during the week.

For the thousands of retirees already feeling the pinch, a significant hike to energy prices such as this could well break the bank.

Could equity release boost your finances?

Many homeowners aged 55+ are living in properties worth hundreds of thousands of pounds, yet struggle to get by on their retirement income alone.

If you can relate, you might wish to consider the solution of equity release.

Perhaps due to rising house prices, or the ‘interest-only time bomb’ putting pressure on mortgage customers approaching retirement, equity release has been growing in popularity.

How much could I unlock from my home? Use our FREE equity release calculator

Thanks to new providers coming to the market and flexible new deals being brought to the table, today’s equity release plans offer more choice than ever before.

Traditional plans offer a cash lump sum without the need to make any monthly repayments; you can also choose from interest-only and variable rate deals.

Customers can also make voluntary payments to reduce or prevent interest from accruing on some plans.

Speak to a specialist

If you are considering equity release then speak to a member of the Bower team today to arrange your FREE, no-obligation initial home consultation. Call free phone [tel].

Remember, equity release will reduce the value of your estate and the amount of the inheritance you leave, so it is vital to speak to an independent specialist in retirement lending before making a decision.

*Guardian 15 Feb 2017 “Energy bills to rise up to 28% for thousands in UK as fixed contracts end”