Pensioners see energy bills 'quadruple overnight'

Pensioners living in two tower blocks said they felt like "second class citizens" after a social landlord quadrupled their heating and hot water bills overnight.

It was now cheaper to boil a full kettle than it was to fill a washing up bowl with warm water, according to residents in Woodall and Hamilton House, in Bloxwich, Walsall.

On 1 October, tenants in Woodall House saw their prices go from 4p per kWh to 13.75p, while the unit price in Hamilton House increased from 4p to 17.67p per kWh.

The landlord Walsall Housing Group (WHG) said it could no longer afford to subsidise "low rates" and that customers with concerns could contact them for help.

The firm removed individual gas boilers from flats in 2021 for safety reasons, and installed a central heat network at both blocks.

Although the firm covered a "large part" of the cost, bosses said it was no longer sustainable to continue subsidising energy rates.

According to energy price comparison website Uswitch, the average cost of gas in the UK is 6.29p per kWh and 26.35p per kWh for electricity.

Resident David Turner, 73, said he was "very frugal" with his heating, adding that he only had the heating on in one room.

"Even then I'm using £3 a day," he said. "It is really astronomical. I wouldn't expect everybody else to do what I'm doing. I've got arthritis so I do feel the cold."

Kathleen Haughton, 96, said she could not understand the new prices.

"We had a meeting in the community room and they'd already put it up," she said.

"We'd like to see the prices go down. You've got to have your heating on sitting in your flat."

WHG said the average user was still paying less than the national average for hot water and heating.

Bloxwich East councillor Mark Statham criticised the housing provider for the difference in prices between the two blocks.

"The only way you can get to the blocks being different prices is if they analyse how much they make from each block and divide it by how much it costs to run it," he said.

Compounding the issue, the heating went off in Hamilton House for about 16 hours over the weekend, which residents claimed was almost a monthly occurrence.

"I think it's bordering on an insult," Mr Turner said. "It's treating us as second class citizens to a degree."

He added: "We know inflation increases but this is more than inflation."

Rob Gilham, a director at WHG, said the firm would never plan to make a profit from heat supply.

"For several years we've kept charges far below the true cost by covering a large part of the expense ourselves," he said.

"Customers have been paying around £200 per year on average for heating and hot water, well below expected energy costs for these types of properties.

"It was not sustainable to continue subsidising these low rates for a small number of customers."

Mr Gilham said the increase meant customers were now paying the "full and fair" cost of the energy they use.

An average user would pay between £412 and £530 he said compared to the national average of £1,266, according to regulator Ofgem.

"We understand that some people are making careful choices about how they use energy, and we urge anyone who is struggling to contact us.

"We offer confidential money advice and one-to-one support, and no customer will ever be disadvantaged for raising a concern."

This news was gathered by the Local Democracy Reporting Service which covers councils and other public service organisations.