A leading charity working with older people said it was “gravely concerned” and called on the government to intervene urgently. According to Sky News analysis, the full state pension is likely to rise to £10,600 from April next year if inflation remains at 10.1% in September when rates are set for 2023-24. But consultancy Cornwall Insight predicts the typical energy bill will also jump in April to £6,616. This would mean the cost of gas and electricity would be 62% of the state pension, leaving the elderly with just £10.92 a day for food, transport and other essential living costs. Independent Age, which provides advice and support to older people, said: “We’re seeing more and more calls to the helpline every day from people who are just desperate, who really have no idea how they’re going to pay. their bills in the fall and winter. “They talk to us about things like turning off their fridge at night to try and save electricity. “We’re seriously concerned. It’s going to be devastating for a lot of people.” The full ‘new’ state pension is paid to people who have reached retirement age from April 2016. Use Chrome browser for more accessible video player 1:33 “People will suffer and die” this winter People who reached retirement age before then receive a basic state pension, which is topped up based on lifetime National Insurance contributions. With the triple lock, both basic and full state pensions rise by the higher rate of inflation, pay rises or 2.5%. The amount for 2023-24 will be determined by the next month’s inflation rate. However, inflation is expected to continue rising over the winter, reaching 18.6% in the spring, according to financial services firm Citigroup, far outpacing the rise in pensions. Energy prices will rise even faster. New York University analysis given to Sky News shows that pensioners and older families will be hit hardest by rising energy costs, with 90% expected to be in fuel poverty by January. Tony O’Brien worked in an office for 40-some years and managed to put down some savings when times were good. But even that is not enough to give him the pension he was hoping for. “I mean, I could get a second job, but it might as well kill me,” he said. “I’ve had health problems, diabetes and various injuries over the years with my back and knees, so it wouldn’t be easy for me to find another job. “It would be possible, but it would probably shorten my life.” Image: Liz Truss is reportedly considering a 5% VAT cut. The 4.5 million people lucky enough to retire on private sector pensions are likely to see their incomes cut, with a potential £25,000 hit over their lifetime due to rising living costs. Pensions group XPS warns that annual inflationary increases in defined benefit pension schemes, which are common in the private sector, are usually limited to 5%, a third of the expected rate of inflation. This would mean the average 66-year-old pensioner on a private sector pension could lose £1,200 a year, XPS said. Public sector workers are not affected because their schemes have no caps on inflation. Writing in the Mail on Sunday, Boris Johnson said the cost of heating was already “horrendous” and future bill rises would be “plunging”. He has been criticized for failing to outline further support, but said his successor would provide significant measures. The front-runner for the next prime minister, Liz Truss, is reportedly considering cutting VAT to 5% and allowing people to earn more before paying income tax. But neither she nor Rishi Sunak have given public details about how they will help people deal with the spiraling crisis.
