Pensioners spend 40% of income on bills

Tuesday, 27 January 2009 12:00

Pensioners aged over 75 spend 40 per cent of their income on food, energy and housing, according to official figures.

The Office for National Statistics (ONS) found households headed by someone aged 75 or over spent much of their average £218 a week income on food and bills in 2007 - but the ONS said this was before the sharp increase in energy prices last year.

David Sinclair, head of policy for Help the Aged, said: "Older people are struggling under the weight of increasing costs of living but the basic state pension is now utterly failing to keep pace.

"The ONS figure, which show 40 per cent of an average weekly expenditure of £218 go on food, energy bills, housing and council tax in 2007, is a huge chunk of what is a small pie.

"More must be done to secure higher levels of take-up of key benefits so that pensioner poverty is properly tackled," Mr Sinclair added.

Age Concern's director general, Gordon Lishman, added: "Despite inflation falling, many of the oldest and poorest have yet to see a reduction in their weekly bills, as the cost of basics such as food and energy continues to fall more slowly than other goods."

However, the average pensioner income rose by 39 per cent between 1994/95 and 2006/07, ahead of the growth in average earnings.

"This may seem surprising, given that during this period the basic state pension was linked to prices, which have risen more slowly than earnings. The main reason is that occupational pensions have grown in importance," the ONS explained.

In 2006/07, pensioner couples received an average income of £508 per week, compared with £267 per week for single men and £240 per week for single women.

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