The state pension will rise by 3.1% today, which is just half the rate of inflation - by which the soaring cost of living is traditionally measured.
The state pension and government benefits will both rise from today, but inflation, which is 6.2% could hit a 40-year high of 8.7% in the fourth quarter of 2022, according to the Office for Budget Responsibility (OBR). It comes as energy regulator Ofgem hiked its price cap - which limits how much you can be charged for each unit of electricity and gas you use - by an eye-watering £693 for someone with typical use.
Council tax bills have just gone up as well while higher national insurance tax has taken effect. Retirees on the full, new state pension, will see their earnings rise by £290 a year.
