People with cochlear hearing loss often have considerable difficulty in understanding speech in the presence of background sounds. In this paper the relative importance of spectral and temporal dips in the background sounds is quantified by varying the degree to which they contain such dips. Speech reception thresholds in a 65-dB SPL noise were measured for four groups of subjects: (a) young with normal hearing; (b) elderly with near-normal hearing; (c) young with moderate to severe cochlear hearing loss; and (d) elderly with moderate to severe cochlear hearing loss. The results indicate that both spectral and temporal dips are important. In a background that contained both spectral and temporal dips, groups (c) and (d) performed much more poorly than group (a). The signal-to-background ratio required for 50% intelligibility was about 19 dB higher for group (d) than for group (a). Young hearing-impaired subjects showed a slightly smaller deficit, but still a substantial one. Linear amplification combined with appropriate frequency-response shaping (NAL amplification), as would be provided by a well-fitted “conventional” hearing aid, only partially compensated for these deficits. For example, group (d) still required a speech-to-background ratio that was 15 dB higher than for group (a). Calculations of the articulation index indicated that NAL amplification did not restore audibility of the whole of the speech spectrum when the speech-to-background ratio was low. For unamplified stimuli, the SRTs in background sounds were highly correlated with absolute thresholds, but not with age. For stimuli with NAL amplification, the correlations of SRTs with absolute thresholds were lower, but SRTs in backgrounds with spectral and/or temporal dips were significantly correlated with age. It is proposed that noise with spectral and temporal dips may be especially useful in evaluating possible benefits of multi-channel compression.