British pensioners will suffer the biggest loss of income since 1975, as the state pension will fall by hundreds of pounds in real terms this April. 

A dramatic surge in inflation and the Government’s controversial decision to break the state pensions “triple lock” will leave a £388 hole in 12 million pensioners’ pockets. 

The state pension will rise by £5.55 a week in April but this 3.1pc increase is not enough to keep up with inflation, which is predicted to hit 7.25pc according to the Bank of England. This will equate to pensioners taking a real terms cut worth £7.45 a week, or £388 a year.

It represents the greatest loss of spending power in 47 years, with inflation expected to outpace the increase by more than 4 percentage points, analysis by Telegraph Money and wealth manager Quilter showed. The last time the state pension fell so much in real terms was in 1975, when inflation hit 21.7pc and the annual state payment increased by just 14.7pc.

Jon Greer, of Quilter, said this would be by far the biggest loss in spending power since the triple lock was introduced in 2010.

This comes as a further blow for pensioners who are among the most vulnerable to rising energy prices and have little protection as the cost of living crisis bites.

Someone turning 66 this year would be £9,291 out of pocket by age 85, in real terms. This is the most conservative calculation as it assumes the state pension only increases 2.5pc beyond 2022. The £388 difference between the two payments would compound over time, costing pensioners thousands of pounds in retirement benefits.