“It’s not enough,” said pensioner Elaine Yates, when asked about Rachel Reeves’ pledge to raise the state pension in her second Budget.
The 75-year-old will be one of 13 million pensioners to benefit from an above inflation rise next April, receiving an extra £575 a year, the equivalent of around £10 a week.
But for the retried factory supervisor, who lives on her own and survives off the state pension, more help is needed, particularly for paying for rising energy bills.
Despite being in line for the Winter Fuel Payment, Ms Yates told The Independent she can not afford to have the heating in her bungalow on overnight.
“From 9.30pm to the morning I have the heating turned off,” she said. “I wake up cold, sometimes shivering, it’s a cut-back I have to make because I can’t afford to keep the house warm, what with prices going up so much.
“The extra money each week in the pension is not enough to cover it.”
Also as part of the Budget announced on Wednesday, Ms Reeves said there would be a change to energy levies that will save the average household £150 a year.
But Mrs Yates, whose husband Michael died in 2022, said any additional funding support would get quickly eaten up by the cost of living.
She also fears, with the freeze on income tax thresholds extended to 2030, she could become liable for income tax, which currently has a personal tax allowance of £12,570 a year.
“I go shopping in the supermarket and pick up food for my pets and a few essentials, but quickly I realise I don’t have enough for more food and I head to the check-out,” she said.
“I only eat two meals a day, often soup or toast. It’s really hard, especially living through it on your own.”
Mrs Yates said she can also no longer afford pet insurance for her 13-year-old dog.
“If something happens I’d face the difficult decision to put him down,” she said. “Everything just costs too much today.”
Charity Age UK issued a statement in response to Ms Reeves’ Budget, which included tax hikes set to bring in £26bn for the Treasury.
Director Caroline Abrahams welcomed the rise in the state pension, but said she feared many pensioners would get “dragged” into paying income tax, including some on low and modest incomes.
She added: “Looking at the overall impact of all these measures in the round leads us to the view that the sovernment should be doing more to help with energy costs – which will still be higher than when they entered power in 2024.”
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