Retirees across the UK are being advised to take immediate action to cut their household energy costs, with a leading consumer group highlighting two common devices as silent budget drainers.
The Standby Energy Culprits
Ahead of the new Ofgem price cap coming into force, the consumer champion Which? has identified wireless or smart speakers and sound bars as the worst offenders for consuming electricity while on standby. Their research reveals these gadgets are the most power-hungry in this mode, costing the average household around £6 per year based on 20 standby hours daily.
The advice is for state pensioners to consider unplugging these items where possible within the next fortnight to realise savings. This call comes as pensioners face a 0.2 per cent increase in their energy bills from New Year's Day under the revised price cap.
Broader Financial Pressure on Pensioners
The need for retirees to find savings is particularly pressing this winter due to wider financial changes. Many face the prospect of repaying the £300 Winter Fuel Allowance to the Labour government and the Department for Work and Pensions (DWP).
HM Revenue and Customs (HMRC) will claw back the payout from retirees whose income exceeds the £35,000 threshold. Defending the policy, Labour Chancellor Rachel Reeves stated that targeting Winter Fuel Payments was a “tough decision, but the right decision” due to the economic inheritance from the previous government.
She emphasised the government's move to means-test the payment to ensure it is “targeted and fair,” while expanding eligibility so that “no pensioner on a lower income will miss out.” This expansion is expected to result in over three-quarters of pensioners in England and Wales receiving the payment this winter.
Understanding the Price Cap Protection
The Ofgem price cap is designed to ensure fairness for customers on standard variable tariffs, making sure prices reflect the actual cost of energy. Households are protected by the cap if they pay for gas and electricity via several methods, including:
- Standard credit (paying on receipt of a bill)
- Direct Debit
- Prepayment meter
- Economy 7 (E7) meter
With the combined pressure of rising bills and changes to state support, the simple act of unplugging a few devices represents a practical step for pensioners to manage their budgets more effectively in the new year.
