Cuts and rises to leave pensioners a further £240 a year worse off

According to research from the Institute of Fiscal Studies (IFS), pensioners will be a further £240 a year worse off due to benefit cuts, fuel duty and the recent rise in VAT, The Telegraph reports.

The findings come just one day after charity Age UK revealed that inflation will leave over-55s, on average, £600 a year worse off.

The IFS believes over 50% of the loss to pensioners from the tax and benefit reforms that will be brought in over the next two years would `result from the increase in VAT`.

The outlook doesn`t get better over the next few years, with pensioners expected to be £367 a year worse off from 2014.

A spokesperson at Gregory Pennington, specialising in debt management, commented: "If these predictions are correct, this will be worrying news for pensioners - particularly those already carrying debts or struggling with other financial issues.

"We would advise anyone worried about their ability to service their debts to seek professional debt advice without delay. The sooner they seek advice, the more options they should have available to them."