Customer use of home reversion plans and equity release schemes could increase as a result of a government funding change.
The BBC reported that the budget for the Warm Front scheme, which provides households with grants to pay for energy efficiency upgrades, is set to be halved from £369 million to £195 million.
This could mean that some elderly people are less able to improve their home insulation, resulting in higher energy bills and greater need for equity release plans over the long-term.
Applicants for Warm Front assistance have already been notified that waiting times will increase up to six months.
Speaking to the broadcaster, David Kidney, the energy minister, said that he was planning to ask the chancellor to maintain good levels of funding for the scheme.
"All ministers are part of the government and I will stand by the chancellor’s decision," he said.
"But I’ve been fighting for Warm Front."
Elsewhere, energy industry regulator Ofgem has announced that customer electricity bills can rise by £4.30 a year in order to pay for infrastructure upgrades.
Posted by Alison Stephenson
