CHARITIES are warning the increase in state pension will be wiped out by a soaring cost of living.
From today (April 10), pensioners will see their weekly payments rise by almost £19 after the government increased the rate by 10.1%.
AlamyCharities are warning the cost of living is outweighing an increase in the state pension[/caption]
But charity bosses have warned the rising cost of essentials such as food, energy, fuel, social care and accommodation will cancel out the boost, reports The Daily Mail.
Caroline Abrahams, Age UK’s charity director, said the state pension increase will give some relief but is not enough to “help many make ends meet”.
Meanwhile, John Palmer, policy director at Independent Age, said the charity is receiving hundreds of calls a month from pensioners asking for cost of living support, grants and other ways to boost their incomes.
He added: “We’ve heard from older people skipping meals, risking their health because they can’t use the heating and living in isolation because they can’t afford to go out.
“This shouldn’t be happening in modern Britain.”
Inflation soared to 10.4% in February, according to the Office for National Statistics.
It means the cost of everyday essentials such as food are more expensive, squeezing households’ wallets and purses.
Energy bills for the typical household stand at £2,500 a year too, despite the government’s energy price guarantee discount.
The government reinstating the state pension triple lock means the rate will go up by 10.1% today, from £185.15 a week to £203.85 a week.
But Ms Abrahams said despite that meaning the full state pension will rise to £10,600 a year, most pensioners receive less than this and the government should step in to offer extra financial support.
A government spokesperson said: “The full rate of the New State Pension will be more than £10,000 per year for the very first time, while the Basic State Pension will be over £3,050 a year higher than in 2010.”
They added the government was boosting Pension Credit for households on the lowest incomes, was providing cost of living payments worth up to £1,350 and had extended the Household Support Fund.
What other help can I get?
If you are worried the increase in basic state pension isn’t enough to cover your additional costs, there is extra support on hand.
Millions are in line for cost of living payments worth up to £1,350 in total this year and into 2024.
Millions on certain benefits, including Universal Credit, are in line for a £900 cost of living payment that’s been split into three instalments.
The first £301 instalment is set to land in eligible households’ bank accounts within weeks.
The second and third instalments, worth £300 and £299 respectively, are set to be paid in autumn this year and spring 2024.
Meanwhile, millions of pensioners are in line for payments worth up to £300 which will be made from November.
Plus, millions with disabilities will receive a £150 payment this summer.
The Household Support Fund has also been extended until March 31, 2024.
Under the scheme, you can get extra support in the form of vouchers or bank transfers, to cover the cost of living.
The support is administered by local councils – you should contact yours to see about getting help.
If you don’t know what council area you fall under, you can use the government’s locator tool on its website.
You might be entitled to extra help through Pension Credit too.
The benefit is paid to those who have reached state pension age and are on a low income.
It is designed to top people up so they can afford everyday living costs and is worth around £201.05 from today (April 10).
But there are thousands who aren’t claiming the benefit when they could.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]