Over the past year, pensioner inflation was 3.9 per cent, the highest rate in a decade.
Rising housing costs have been the main driver behind pensioner inflation in the past decade with a 73 per cent increase in this expenditure item, accounting for 44 per cent of pensioner inflation between 1996 and 2006. Increases in council tax (94 per cent) and repairs and maintenance (93 per cent) were the key factors behind the increase in housing costs.
Housing is the largest single expense facing pensioners, accounting for an average 25 per cent of all expenditure (£55.79 a week). Housing now represents the same proportion of expenditure for pensioners as for all households (25 per cent).
Clerical Medical group economist Tim Crawford says:
“Pensioners have faced a one-third rise in the average cost of living over the past decade. Higher housing costs have been the key factor driving up living expenses for pensioners with these costs accounting for almost a quarter of the average pensioner’s total spending.”