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Basic state pension shock – pays £324 LESS than average energy bill from April | Personal Finance | Finance

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Tens of millions of the oldest pensioners will probably be terrified to make use of any gas or electricity as costs proceed to rocket. Those on the bottom incomes urgently need support now or they are going to face misery and destitution.

Incredibly, energy consultancy Auxilione has forecast that energy bills will hit £7,700 from April 2023.

War in Ukraine and global energy shortages mean that prices are set to go higher than previously predicted, it says.

On Friday, regulator Ofgem announced the energy price cap would increase from £1,971 to £3,549 for the common household, from October 1.

If correct, Auxilione’s prediction could see that greater than double.

Yet currently, the fundamental State Pension pays just £141.85 every week to those that retired before April 6, 2016.

That is price £7,376.20 a 12 months for many who qualify for the complete amount, although some will get additional State Pension on top.

Incredibly, that’s lower than the common predicted energy bill. It would leave precisely nothing for basic on a regular basis costs, resembling eating, council tax and water.

Express.co.uk readers are furious as the price of living spirals to unprecedented levels, with many wondering how they are going to survive.

Reader Pinnermac wrote: “[The] old age pensioner’s income will probably be nil. They’d have just one selection, either to eat or starve and warmth the place.”

The outcomes might be extreme: “Plenty of them will find yourself dying of hypothermia.”

One other reader, Sommer, said that pensioners worked all their lives for a good pension however the UK’s pays the bottom within the developed world. “The old state pension is just over £7,000 you are trying and continue to exist that.”

Auxilione’s price prediction is for next April, at which point the fundamental State Pension may have increased, based on September’s inflation figure.

But reader Sommer noted: “A pay rise on just over £7,000 is nothing.”

READ MORE: State pensioners’ income slashed by £800 amid cost of living crisis

One other reader, Shmuck, said: “All of us won’t be living but merely existing. [It’s] amazing how all of the politicians appeared to have disappeared at this v worrying time.” 

There was also widespread anger at politicians, with many noting that MPs “enjoy public-funded gold-plated inflation proof pensions”.

Reader Virago highlighted the discrepancy between the old State Pension and the brand new State Pension, with the latter paying £185.15 every week, or £9,627.80 a 12 months.

Virago said: “The true issue is having two rates of State Pension. The result’s that those that have paid in most get less pension.”

Worse, the lower basic State Pension is paid to older people. “[They] are more liable to the cold and have higher medical and care costs. Yet they get far less.”

Virago said she is 77 and paid income tax for 60 years and National Insurance for 47 years, yet gets less State Pension than someone who has made 35 years of NI contributions to the brand new State Pension. “This has to stop. We’d like fair state pensions for everybody.”

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Express.co.uk Reader TOM the ONE called on politicians to play fair. “How about giving pensioners a price of living pension [of] £342 per week?”

He wasn’t hopeful, though. “They can not do this because it means we’ll have the ability to live longer and never die of malnutrition or hypothermia and never drain the Treasury coffers.”

Amid widespread anger, some pensioners called their generation to revive the Blitz spirit that saw them through the Second World War and other crises.

AntiEU wrote: “We had inflation at 25% in 1975 as a result of oil crisis and once I bought a house in 1980 it was 18% and we’re all still here. What now we have now’s nothing to panic about.” 

Yet as energy bills rocket Andy Government seems in paralysis as a result of the Conservative Party Leadership crisis, panic is growing.

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