Cost of living: Longridge pensioner forced to use her life savings to pay for 44 per cent 'loophole' housing association rent hike

The 76-year-old pensioner from Longridge received a letter from Onward Homes informing her of the increase, which will see a rise of 44 per cent in her weekly bills for her one-bedroom supported living accommodation in April. Her weekly rent will go from £123 to £178.

Onward’s rent increase is capped by the Government to seven per cent, going from £68 to £73, but the housing association has almost doubled its service charge from £55 to £105, meaning June’s monthly payment is now almost £700.

Retired special school teacher June says her pension now doesn’t cover her outgoing and she will now have to use her savings to meet her living costs.

June said: “I came into sheltered housing thinking I could have my old age in peace and quiet. When I rang them up they told me I signed an agreement that included annual increases, and I did, but I didn’t sign up to be taken advantage of.

“People like me have savings, but we need that just in case we need to go into an old peoples home but we shouldn’t have to go into that.

"I’m absolutely stressed out, I spoke to my doctor as I was on anti-depressants previously but came off them because I was so happy here, but I feel I may have to go back on them. I don't want to go back on them.”

June, who hopes to organise a meeting to fight against the price rise, said: “My incomings won't cover my outgoings, I’m 76 my savings should provide me a comfortable end to my life in case I need to go into a home and then bury me.

"We need people to know what’s going on in this so-called social housing, I have come here thinking I can afford sheltered housing, not to live lavishly but to live comfortably.”

She added: “I’m going to fight this to the nail, I’ll pay the old rate until somebody can make a sensible decision. I’ve got to do it because I am frightened.

"Social housing is supposed to be social rent but it's anything but people here are left out on a limb.”

A spokesman for Onward Housing said its rent increase was in line with Government rules and the service charge increase was prompted by the rise in global energy prices.

The spokesman added: “We understand that the increase in costs many customers face at the moment is difficult. There are lots of ways we can help anyone who is struggling to pay and we will contact Ms Roebuck directly to see how we can help.

“Each year we review customer rents so they remain at a level that allows us to improve our homes and services. Our rents will increase by 7% in April, which is below inflation and at the capped level set by government. Almost all housing organisations are increasing their rents by this amount.

“Most of the charge increase for Ms Roebuck relates to the separate service charge, which covers things like utilities costs and scheme managers. The increase is because over the past year energy costs have risen significantly. Onward has subsidised these costs until now, meaning that customers have not had to pay higher bills over the winter. Unfortunately, we cannot afford to do this indefinitely, so the higher cost of energy will be reflected in service charges from April. Onward makes no profit from this increase in charges, rather we are covering the costs we are now paying for energy.

“We have contacted customers facing high charge increases in advance to explain the changes and understand if additional support is needed. Our promise remains in place that no one will lose their home as a result of hardship where they are working with us to make payments.”