‘165,000 older households can’t cover their essential spending’

AROUND 165,000 older households in Wales will have insufficient income to cover their essential spending this year, according to the latest analysis by Age Cymru.

The charity says almost two fifths of these (around 70,000) are living in poverty or just above the poverty line and/or are in receipt of benefits.

Age Cymru estimates the poorest older households will need to drastically increase the percentage of their net income spent on essential goods and services from 58% in 2021-22 to 73% in 2022-23 due to higher costs of living.

For older people, essential spending covers rent or mortgage, council tax, utility bills, food and drinks, communications and transport.

The charity says it is deeply concerned that, for those living on low and modest incomes, there will be no wiggle room to meet other expenses and the situation will be worse still for those with disabilities or ill-health who have higher energy needs.

It is calling for immediate UK Government action to help all those who need it by increasing benefits and the state pension in line with inflation. It is also calling for a one-off payment of £500 for those on the lowest incomes to mitigate the impact of energy price increases.

Age Cymru’s recent survey regarding older people’s experiences during the latter stages of the pandemic found that 35% reported the cost of living as a current challenge which was a 20% increase in comparison to last year.

The charity’s chief executive Victoria Lloyd said: “This latest analysis, building on the preliminary findings of our post pandemic survey, shows the brutal impact that rocketing prices are having on Wales’ older population and the desperate situation facing thousands of older people, if the UK Government fails to act.

“It is astonishing that there is so much evidence of the struggles facing older people and yet the government fails to intervene in any effective way.

“For older people on low fixed incomes, relying solely on their state pension and benefits, the future is looking extremely bleak as there are no more cuts they can make to their household budgets.

“Without effective government intervention older people are at risk of deep hardship like nothing we’ve seen in this country for many years.”