National Seniors opposed ceasing payment of the Energy Supplement to new pensioners.
We fought hard for this and won.
The Coalition have now ruled out taking the Energy Supplement away from new pensioners.
Now we need to reinstate indexation.
Why is the Energy Supplement so important to pensioners?
The Energy Supplement is critical to help pensioners cope with rising energy costs.
Electricity and gas prices have increased excessively over the past 10 years.
Between 2007–08 and 2015–16 electricity and gas prices increased at a rate of 80 to 90 per cent, far exceeding inflation.
In 2017, retail electricity prices increased as much as 20 per cent in some jurisdictions.
Some households are $600 – 700 worse off as a result.
The loss the Energy Supplement would have increased this to around $1,000 for some households.
What’s the supplement worth to pensioners
The Energy Supplement for a single pensioner is worth $366.60 per year and $550 per year for a couple combined.
Inflation means the value of the Energy Supplement is declining.
The Energy Supplement used to be indexed so that inflation would not erode its value.
Indexation was removed in the 2014-15 Budget and held at the June 2014 rate from 1 January 2015.
If government was fair dinkum they would reinstate indexation and link this to energy prices as a practical demonstration of their commitment to bringing prices down.
What is National Seniors doing?
National Seniors fought hard to retain the supplement for new pensioners.
We are now fighting to reinstate fair indexation to ensure it adequately compensates low-income households.
If prices go up, the supplement should go up.
This will ensure the supplement is adequate over time and that government continues to play an active role in reducing energy costs.
What can you do?
We’re asking you to show your support by signing our petition.
National Seniors will present this to politicians to lobby for the reinstatement of indexation.
Don’t forget you can sign up to the campaign and get regular updates.
The best way to help is by becoming a National Seniors member (if you are not one already).