Abacus Daily Debt News

Over-75s ’spend 40% on bills, food and tax’

Households headed by people aged 75 or over spent an average of 40 per cent of their weekly outgoings on food, energy bills, council tax and housing in 2007, according to newly-released figures from the Office for National Statistics (ONS).

The Pension Trends report also showed that households led by people aged 65-74 paid out more than 30 per cent of their income on these goods and services.

However, these figures were compiled before energy prices rose in 2008, the ONS noted, suggesting that the level of expenditure could now be even higher.

It explained that older people’s spending on items such as food, tax and bills rises with age as they are paying out similar amounts from lower incomes.

Commenting on the new report, Age Concern director general Gordon Lishman said: "Despite inflation falling, many of the oldest and poorest have yet to see a reduction in their weekly bills, as the cost of basics such as food and energy continues to fall more slowly than other goods."