More than 12 million pensioners will receive a pay cut worth hundreds of pounds, slashing their spending power. The state pension will rise by 3.1pc next month, falling far short of inflation, as the increase is based on the inflation figure from September 2021.

The sharp increase in energy prices is equivalent to more than four weeks’ worth of the average state pension, which is rising to £8,530 in April. This alone will account for almost a quarter of the yearly benefit, meaning retirees will spend three months of their annual income just on heating their homes.

Nigel Mills, a Tory MP, said it was “clear that the Government will have to act and give more support”. He said: “It’s inevitable. They will have to give some more support to pensioners in particular, whether that is an additional increase in the state pension or the winter fuel allowance. There is no law that says that it has to be increased once a year only, so it can be done.”

Pensioners will have to spend an additional £2,246 a year if inflation reaches 8.7pc. However, the state pension will increase by just £289 a year.