Age UK response to ONS inflation figures
Published on 12 April 2011 01:00 PM
Michelle Mitchell, Charity Director at Age UK, said:
'Although inflation has fallen slightly, RPI - which we believe is a better measure of pensioner inflation - is still 5.3%, far higher than this week's 4.5% increase to the basic state pension. Other benefits including the state additional pension still won't rise in line with inflation because they only go up by 3.1% in line with last September's CPI.
'In fact, even the standard RPI can understate older people's living costs. Age UK Enterprises, the commercial services arm of charity Age UK, has created the Silver RPI, to better reflect the impact of inflation on those in later life. Since 2008 this has shown inflation has been higher for older people than for those under the age of 55. This is due in part to the impact of low mortgage interest rates which do not have as great an effect as those in later life as they are less likely to carry mortgage debt, and cost increases on products and services such as food and energy that over 55s spend proportionately more on.
'With pensioner incomes failing to keep pace with the rising cost of living, many older people will be finding it difficult to afford the basics, let alone anything else. To help older people make the most of their money and claim the benefits they are entitled to, Age UK is launching the Let's Talk Money campaign this week. To find out more go to www.ageuk.org.uk or call Age UK's free advice line on 0800 169 65 65 for a free Let's Talk Money advice booklet.'
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Notes to Editors
For media enquiries relating to Wales, Scotland and Northern Ireland please contact the appropriate national office: Age Scotland on 0131 668 8055, Age Cymru on 029 2043 1562 and Age NI on 028 9024 5729.
Age UK is the new force combining Age Concern and Help the Aged, dedicated to improving later life.
We provide free information, advice and support to over five million people; commercial products and services to over one million customers; and research and campaign on the issues that matter to people in later life. Our work focuses on five key areas: money matters, health and well being, home and care, work and training and leisure and lifestyle. We work with our national partners, Age Scotland, Age Cymru and Age NI (together the Age UK Family), our local Age UK partners in England and local Age Concerns. We also work internationally for people in later life as a member of the DEC and with our sister charity Help Age International.
Age UK is a charitable company limited by guarantee and registered in England (registered charity number 1128267 and company number 6825798). Age Concern England and Help the Aged (both registered charities), and their trading and other associated companies merged on the 1st April 2009. Together they have formed the Age UK Group ("we"). Charitable services are offered through Age UK and commercial products are offered by the Charity's trading companies, which donate their net profits to Age UK (the Charity).
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