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Pensioners who had been hoping for big increase in winter fuel payments were disappointed by yesterday's pre-budget report, although there was other significant help for the over-60s.
Alistair Darling's most eye-catching announcement was the news that all those in receipt of the state pension would get a Christmas bonus of £60 - the first increase for years. The one-off payment will also go to those on disability allowance, and others on similar benefits.
He also announced help for the poorest pensioners. Pension credit payments will rise in April from £124 to £130 a week, and from £189 to £198 for older couples. The basic state pension will go up from £90.70 to £95.25 a week.
For those struggling with gas and electricity bills that have doubled in recent years, the chancellor resisted the temptation to increase winter fuel payments from their current level of £250 per pensioner household - £400 if one or more resident is aged over 80.
Instead he said he was giving an extra £100m to the Warm Front programme, which targets poorer households with grants to deliver energy efficiency measures, including new boilers and cavity wall and loft insulation. Around £50m of the agency's existing allocation will also to be spent a year sooner than planned.
Britain's biggest pensioner organisation, the National Pensioners Convention (NPC) described the announcements in the pre-budget report as not going "far enough, fast enough" to prevent pensioners feeling a recession in retirement.
Joe Harris, NPC general secretary said: "Darling's proposed rise in the state pension means that millions of people will get an increase next year of just £4.55 a week, and no real extra help with their growing fuel bills. The one-off Christmas bonus is welcome, but pensioners need that money, not only now, but also in the long-term. Whilst VAT has been reduced on other goods, it won't come off fuel bills, which is where pensioners are feeling real pressure most.
"The chancellor may have announced measures to ease the recession for the rest of society, but he's done very little to tackle the recession felt in retirement by Britain's 11 million pensioners. Darling has found billions for bankers, but still offers peanuts to pensioners. One in four older people still live in poverty and every week more and more of them face rising food and fuel prices."
Gordon Lishman, director general of Age Concern, said: "Extra help for pensioners is extremely welcome, but the chancellor's pre-budget package will still leave many of the oldest and poorest, who have been hit hardest by rising living costs, paying the price for the economic downturn."
He said cuts in VAT would be welcomed by pensioners, but the oldest and poorest would benefit least, as they spend a much higher proportion of their income on food and energy which are not affected by lower VAT.
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