A recent study has found that despite the inflation rate falling, pensioners are facing annual inflation rates around ten times higher than the rest of the population.
Responding to the figures, Age Concern and Help the Aged said that with high food and fuel bills, many pensioners are forced to make huge cut-backs compared to their younger counterparts who are still earning.
This could impact on the home care which many pay for.
Mervyn Kohler, the special adviser for Help the Aged, said it was time the government "took the bull by the horns" and ensured that pensioners received the benefits they have available to them, particularly in light of the £5 billion which goes unclaimed each year.
He added: "The government has known for a while that automatic payment of benefits could lift a huge number of older people out of poverty - what's needed now is the political will to make it happen."
Earlier this month, Mr Lishman said the government are demonstrating double standards in regard to ageism in the workplace, stating that if MPs were subject to the same rules in the workplace as their regular counterparts, one in eight would be forced to retire.
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