Millions of pensioners 'on financial brink'

Millions of pensioners are on the brink of poverty as food and energy price rises hit retirement incomes.

Speaking at the anti-poverty meeting in Edinburgh, George Henderson, chairman of the National Pensioners Convention Scotland, claimed nearly three million pensioners were in fuel poverty – spending over ten per cent of their income on gas and electricity bills – and recent high inflation was hitting pensioners harder than the wider population.

"Pensioners are suffering because they spend a higher proportion of their income on those items that are rising fastest," he said.

"Pensioners are suffering because they spend a higher proportion of their income on those items that are rising fastest - while the purchasing power of their state pension continues to decline," he said.

"The number of older people in poverty is higher now than five years ago and things look set to get worse."

He also hit out at the government that was able to support the City and financial institutions, but had left those in retirement behind.

Mr Henderson added: "People of all ages will ask why should we bail out City fat cats who have brought the economy to its knees and now want a bail out from tax-payers, while pensioners freeze and go hungry."

He added nearly three million pensioners were in fuel poverty – spending over ten per cent of their income on gas and electricity bills.

"The rising costs of household bills basics like heating, food and council tax, mean millions more older people could be using as much as 70 per cent of their income just to keep their house warm and eat a decent meal.

"That doesn't leave very much at the end of the week to enjoy life," he said.

Mr Henderson went on to call for the government to raise pension incomes to over the £151 a week poverty line and ensure that it continues to rise in line with inflation or earnings, whatever is the greater.

"If they do not, then the harsh reality is that many pensioners simply cannot afford to survive," he added.

The National Pensioners Convention claims the poorest single pensioners saw their real incomes drop by four per cent last year.

Up to 61 per cent of all pensioner couples now have an annual income of £15,000, while 45 per cent of all single pensioners live on just £10,000 a year.

A single pensioner living on the pension credit is guaranteed an income of £124.05 a week – but many pensioners fail to apply for all benefits they are entitled to.

Furthermore the government looks set to cut back on the amount people can make in post dated claims.

From October 6th 2008, claims for unclaimed pension credit will only be able to be backdated three months and not 12 months as the system currently allows.