Bill Jupp, 76, will see his state pension increase by 3.9 per cent next month in April - a grand total of £3.50 a week or £177 a year.

However, his electricity bill is set to rise from £324 to £420, gas from £612 to £780 and council tax from £1,452 to £1,508.

The increases in these bills alone mean he has to find an extra £320 - and that's without the increase in the cost of other basic essentials such as food, fuel and household maintenance.

He tries not to use his car, which will need an expensive service next year.

He said: "All those bills have got to be paid - and I'm not one of the worst-off.

"For many people, particularly women living on their own, its a question of whether to put one bar on the electric fire or to have a bowl of soup."

In the year which marks the 100th anniversary of the introduction of Britain's first state pension, launched by the then Chancellor of the Exchequer Lloyd George, in 1908, Mr Jupp is campaigning for a universal state pension above the poverty line, with a permanent link to average earnings.

He said: "Our state pension is ranked as one of the worst in Europe - and for a society that's the fifth richest in the world, it's not good enough."