PENSIONERS are paying 36 per cent more for their goods and services than they were ten years ago, according to a report out today. The extent of pensioner inflation is revealed by Clerical Medical, part of HBOS, which found that the 36 per cent hike compared with a 32 per cent increase in retail price inflation. It said average pensioner household expenditure has increased 24 per cent since 2001-2.
The rise has been driven by a 69 per cent hike in housing costs – not taken into account by the government's official measure of inflation – including council tax, repairs and maintenance.
"The average cost of living facing pensioners has risen b
y more than one-third over the past decade," said Martin Ellis, chief economist at HBOS. "The cost of living for pensioners has increased by more than that for all households during the period, particularly in the last five years."
The report reinforced the need for the government to take action to improve standards of living for pensioners, said a spokesman for Age Concern Scotland.
"Small increases to the basic state pension each year have simply failed to keep pace with the escalating cost of living for older people.The government should increase the state pension to as much as £124 a week at least and reinstate the link to earnings as soon as possible."
He said the problem was exacerbated by low awareness among pensioners of the benefits to which they are entitled. Each year billions in benefits available to pensioners go unclaimed, with pension credit the primary benefit that opens the door to others.
"Up to £1.4 billion of council tax benefit, which exempts pensioners receiving the basic state pension from paying it, is not claimed because people don't know about it, and it's a similar story with several other small bits and pieces that can make a difference," according to Age Concern Scotland.
• For more information on benefits to which you may be entitled, go to
www.entitledto.co.ukThe full article contains 340 words and appears in The Scotsman newspaper.
