Chancellor Rachel Reeves' second Budget has failed to alleviate the severe financial pressures facing Britain's pensioners, with a 75-year-old woman revealing she is forced to switch her heating off overnight and survives on just two meals a day.
A Budget That Leaves Pensioners in the Cold
Elaine Yates, a retired factory supervisor living alone, is one of 13 million pensioners set to receive an above-inflation rise to the state pension next April. The increase of £575 a year, or roughly £10 a week, was announced by the Chancellor as a key measure to support older people.
However, for Mrs Yates, this extra money is insufficient to cover her soaring energy costs. Despite being eligible for the Winter Fuel Payment, she has made the difficult decision to turn her heating off from 9:30pm until morning to save money.
"I wake up cold, sometimes shivering," Mrs Yates told The Independent. "It’s a cut-back I have to make because I can’t afford to keep the house warm, what with prices going up so much. The extra money each week in the pension is not enough to cover it."
Broader Financial Squeeze and Tax Fears
The Budget, delivered on Wednesday 26 November 2025, also included a change to energy levies that the government says will save the average household £150 a year. Yet for Mrs Yates, whose husband Michael died in 2022, any additional financial support is quickly consumed by the rising cost of living.
Her anxieties are compounded by the Chancellor's decision to extend the freeze on income tax thresholds until 2030. With the personal tax allowance remaining at £12,570 a year, Mrs Yates fears she could soon be dragged into paying income tax, further eroding her limited income.
The financial strain extends to all aspects of her life. Her supermarket trips are now limited to pet food and a few essentials, forcing her to survive on two meals a day, often just soup or toast. In a heartbreaking admission, she revealed she can no longer afford pet insurance for her 13-year-old dog.
"If something happens I’d face the difficult decision to put him down," she said. "Everything just costs too much today."
Charity Echoes Calls for More Government Action
Charity Age UK responded to the Budget, which included tax hikes projected to raise £26 billion for the Treasury. While director Caroline Abrahams welcomed the pension increase, she voiced significant concerns.
She stated that the combination of measures could lead to many pensioners on low and modest incomes being pulled into the income tax net. Abrahams concluded that the government "should be doing more to help with energy costs – which will still be higher than when they entered power in 2024."
The story of Elaine Yates underscores a growing crisis, suggesting that for millions of pensioners, the government's financial support is failing to match the harsh reality of their daily lives.
