Autumn statement: the pensioners' view

Retired couple Bob and Anne Henderson live on a joint income of £275 a week, comprising their basic state pensions and a small income from a private pension. They were pleased to see a £5.30 a week increase from April 2012 in the basic state pension, but Bob says they will probably gain little from it because it means other benefits for which they qualify will be reduced. A 4.6% increase worth just over £2 a week to their state pension in April 2011 means they no longer qualify for pension credit or the cold weather payment – the £25 that is paid to people on certain benefits if the temperature is recorded at zero degrees or less for seven consecutive days. Bob said: "The increase [in pension] will be about £21 a month, but as we still get a council tax reduction, that will probably be reduced in line. I suspect we'll actually be about £1 a week better off – we can maybe buy a loaf of bread with it." The Hendersons, who live in Cramlington in Northumberland, were dismayed when their shared winter fuel allowance was allowed to lapse from £250 to £200 – a measure announced in the 2011 budget. The cuts have made a difference. The couple, who live in a two-bed modern bungalow, use gas central heating and "the bills have gone through the roof". They took energy secretary Chris Huhne's advice and switched to a cheap one-year fixed deal but Bob said: "We have to turn the heating off. We're just hoping the weather stays as it is now." He believes the government is creating a new group of people living in or just above poverty. "We've got a certain level of pension and a little bit of savings, so we don't qualify for benefits. If you get pension credit, it doesn't matter how small that credit is, it opens a whole treasure chest of other things you are entitled to. Now [we don't qualify] we're gradually going down the ladder."