Age UK, the largest charity in the UK for elderly people, is being criticised for selling insurance which might not be the best value for money.
The charity has been accused of steering elderly people towards more expensive energy deals, in an arrangement with E.ON, receiving approximately £21m as a result.
Ofgem, the energy regulator, has said it will investigate Age UK’s behaviour, alongside the Charities Commission.
Age UK has responded to the allegations, saying: “We strongly reject the allegations and interpretation of figures. The Age UK fixed two-year tariff offers a good deal and was the market-leading two-year tariff when launched in January.”
“The Age UK fixed two-year tariff is over £100 cheaper than the E.ON standard variable tariff and is cheaper than other variable tariffs. With E.ON’s support we have managed to maintain our level of charitable work.”
Its website appeared to show that a 70 year old woman driving a 2005 Nissan Micra would have to pay £544 for her car insurance premium, but Ageas, the policy supplier, can better that. Under its Kwikfit brand, it offers it for £371, considerably cheaper.
Some of the insurance deals offered by Age UK are cheaper than rival quotes, however.