In spite of rising affluence amongst people over 65, the living standards of many pensioners continue to be a matter for public policy concern. In particular, it is people without occupational pensions who are among those worst off. While the proportion of those over 65 with an occupational pension have risen from 43 per cent in 1979 to 60 per cent in 1998, a quarter of all pensioners fall into the bottom quintile of income, having no resources other than state pension and benefits. Poorer pensioners spend the greater part of their weekly budget on food, which consists of a quarter to a third of total income. However, the amount spent may get squeezed in difficult times because poor people usually attend to fixed items like fuel and rent first and only then turn to the purchase of flexible commodities like food. Poorer pensioners carry a greater burden of ill health and also live in poorer quality housing. Through lack of money, people are not only unable to purchase certain commodities, they are also unable to participate in activities which most people would think are essential – thus becoming socially excluded from mainstream society. The effects of poverty are multidimensional and relatively little is known about the reality of life on a low income in older age.