Responding to Office for National Statistics (ONS) information on pensioner household spending, David Sinclair, Head of Policy for Help the Aged says: 

'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. 

'Council Tax increases are taking an ever-larger toll on pensioners pockets, fuel costs overwhelm the annual Winter Fuel Allowance while even the costs of basics such as food and clothes means many older people are facing tough choices this year. 

'The Government must now accept that the state pension is inadequate and in need of serous rethinking. More must be done to secure higher levels of take-up of key benefits so that pensioner poverty is properly tackled. Paying benefits automatically via a single application would reduce the means-testing which acts as a real barrier for many older people when it comes to getting what they are entitled to. As much as £5 billion worth of benefits is going unclaimed by our pensioner population, which is a damning indictment of a system that is in urgent need of reform.'