Apr 12 2007
Older households in the UK have the highest living costs in the country, it has been claimed, with the rate of inflation for the over-75s consistently exceeding that for the rest of the population.
Recently published figures from Alliance Trust show that inflation for elderly households during 2006 was 56 per cent higher than the headline rate, rising by 64 per cent to 4.6 per cent during the year.
The reason for this disparity between age groups is attributed to older Britons spending a higher proportion of their income on necessities including food, utilities and housing.
Shona Dobbie, head of the Alliance Trust Research Centre, said: "Our findings, which show clear differences in the way inflation affects people in various age groups, suggest that it is inappropriate to link age-related benefits, such as pensions, to a national average for inflation."
Ms Dobbie added that preoccupation with the headline rate of inflation clouds issues relating to the stronger inflationary pressures on older citizens.
Earlier this month, Alliance Trust announced that it had written to economic secretary to the Treasury Ed Balls regarding changes in the tax laws relating to alternatively-secured pensions.
