UK think tank urges energy discounts for elderly
The UK-based Institute for Public Policy Research (IPPR) has proposed that the government bulk-buy energy to help fight against fuel poverty.
More than 3.5 million people are paying GBP160 million a year more for their electricity and gas because they are using more prepay meters rather than paying by direct debit, IPPR says. IPPR says the government could bulk-buy energy for pensioners and benefit claimants currently using prepay meters, deducting the charges direct from their income support or pension credit benefit payment. The plan could save them GBP60 a year each - up to 15% of the average annual bill, the research body says. At the moment, the cruel irony is that the poorest people in the country pay the most for gas and electricity. That's not just unfair, it makes no sense for either the energy companies or the taxpayer, says the IPPR's deputy director Ian Kearns. Gas and electricity companies don't want to have to use prepay meters or weekly saving stamps because they are expensive to maintain and administer. At the moment they pass the extra cost on to these consumers. If the government bought the gas and electricity direct, they could pass on the savings to the poorest and protect them from being ripped off. And they could do it right away because the computerized mechanism already exists to deduct utility payments directly from income support and the pension credit, Mr Kearns added.

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