Industry experts are warning that the basic State Pension is falling short and won't cover the looming energy bills.
According to the The Telegraph, some pensioners will not receive enough to cover their energy bills as predictions for next year's price cap suggests a staggering jump. This comes as Ofgem announced on August 26 that the price cap will rise from from £1,971 currently to £3,549 for the average household.
This has left many wondering how they will make ends meet, even if with the cost of living payments as the 80 per cent increase will come into force on October 1. On top of that, costs are expected to rise again in January after the energy regulator confirmed the price cap will change every three months.
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And it is thought the worst is yet to come as energy consultancy Auxilione has estimated that energy bills will hit £7,700 from April 2023. If correct, Auxilione’s prediction could see the current price cap more than double in the new year, having already nearly trebled since October 2021 compared to October 2022.
Meanwhile, the basic State Pension pays only £141.85, adding up to £7,376.20 a year for those who qualify for the full amount. Those who retired before April 6, 2016 will receive this payment but it means that they will be getting £324 less than, Liverpool Echo reports.
According to a survey by pension provider Royal London, the average person needs £1,117 per month to live comfortably in retirement but the new full state pension only pays £802 a month.
The Government has already announced some support for this coming winter, with all households receiving a £400 discount on their bills, however experts warn this won't be enough.
Those receiving certain benefits will receive further payments in an effort to ease the burden with those claiming Pension Credit receiving an additional £326.
On top of that, those born on or before September 25 1956 you could get between £250 and £600 to help you pay your heating bills. This is known as a 'Winter Fuel Payment'
More measures are expected to be announced by either Liz Truss or Rishi Sunak when one of them become Prime Minister next week.
Looking forwards to 2023, the full new state pension is on expected to increase next April by £18.70 a week, from £185.15 to £203.85. For those who reached state pension age before 2016, the basic state pension is set to increase £141.85 to £156.20.
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