Age UK suspends energy tariff in face of widespread media criticism

10 Feb 2016 News

Age UK has suspended an energy deal it recommended to pensioners, and which a Sun investigation claimed led supporters to overpay for gas and electricity.

Age UK has suspended an energy deal it recommended to pensioners, and which a Sun investigation claimed led supporters to overpay for gas and electricity.

Some 55,000 people have also signed a petition on Change.org demanding the charity and its partner E.ON refund the difference.

Last week an investigation by The Sun newspaper alleged that a tariff recommended by Age UK in 2015 was an average of £245 a year more expensive than E.ON’s cheapest rate, creating an overspend of £37m a year for the 152,000 customers currently on the deal.

In a joint statement, German-owned E.ON and Age UK said: “E.ON and Age UK Enterprises have announced that they are temporarily to stop offering an Age UK Enterprises branded tariff to new and renewing E.ON customers from Wednesday 10 February 2016.

“This decision has been reached on a mutual basis and both organisations retain confidence in the tariff offered to customers. However, due to continued speculation regarding the partnership, both organisations feel it is right to pause and reflect on the best way for both parties to achieve their shared goal of helping customers.”

Separately, around 55,000 people have signed a petition calling on the charity and E.ON to refund the £245 to customers who have been overpaying.

A letter by a customer, Raymond Noble, said: “You have announced that you will now withdraw the misleading Age UK tariff and replace it with a better deal for older people. That is good news and we thank you for your company's response.

“However, it is acknowledgement of the misleading nature of the Age UK tariff. Many older people are not in a good position to 'shop around' for the best deals. They trusted that there would have been a duty of care to ensure their interests were looked after.

“This is why many were attracted to it. They now find that this was not the case and they have effectively been overcharged. We ask that you now put this right by arranging to refund Age UK E.ON customers.”