Par of the state pension paid to Britain's most elderly citizens has not been increased for an incredible 36 years - as successive governments have ignored the needs of the over-80s.

When pensioners reach 80, their state pension is increased by the Age Addition. This allowance was introduced by Prime Minister Edward Heath in 1971 when it was set at 25p a week - and that's what it remains at today. Had it just kept pace with inflation, it would now be £2.67.

And because the Age Addition is paid as part of the state pension if the pensioner is a taxpayer, he will lose a chunk of this already tiny sum to HM Revenue & Customers.

The paltry amount is paid to Britain's 2.75 million pensioners over 80. The original idea of the Age Addition was to recognise the extra living costs - such as higher heating bills - incurred by this age group.

Jim Barry, a disabled World War II veteran from Skegness, Lincolnshire, was amazed to discover his state pension had increased by just 25p per week when he turned 80 earlier this year.

He says: 'This is not only farcical but insulting. I served my country during the war. Is this what the Government thinks I am worth?
'I'd rather not receive this money at all. I suppose I could go to the local public toilet, pay 20p and give the attendant a 5p tip if I was feeling flush.'

Norma Turnbull, an 82-year-old widow from Buckinghamshire who relies on income from the state pension and a small personal pension, says: 'This payment is an absolute insult. It won't even buy me a first-class stamp.'

Research from Prudential shows the extra money is urgently needed by many pensioners. The cost of living for those aged 65 and over is rising faster than the national average.

Between 2002 and 2006 the average annual expenditure in households where the main occupant is aged between 65 and 74 increased by around 9%, compared with a 4% national average. But where the main occupant of the household was 75 or over, the increase was 10%. Alliance Trust's Age And Inflation report shows that households headed by someone aged 75 or over are hit by inflation 16pc higher than younger people.
 
Shona Dobbie, head of the Alliance Trust Research Centre, says: 'The impact of higher prices for basic goods and services such as heating and food almost always falls most heavily on the elderly, and those on low incomes in these households spend a larger proportion of their budgets on these necessities.' But now pressure is mounting on the Government finally to increase the Age Addition after 36 years of neglect.

Mervyn Kohler, from charity Help the Aged, says: 'Even when it was introduced, the Age Addition wasn't a huge amount of money, but it helped. Now it is seen as an insult by pensioners. It needs to be increased to a meaningful sum to acknowledge the extra costs faced by older people.'

Pension campaigner and former Government adviser Ros Altmann says: 'This is a disgrace and shows once again that we have the meanest, most complex state pension in the world.' But the Government says because the Age Addition is taxable, increasing it would reduce many pensioners' entitlement to means-tested benefits.

It says it has also implemented several measures since 1997 to help those over 80, including increasing their winter fuel allowance from £200 to £300 and introducing free television licences for the over 75s in 2000.

Paddy Millard, from charity Tax-Help for Older People, says: 'The Government is wasting millions of pounds by giving fuel allowances to millionaires and people who don't need it instead of giving extra financial support to pensioners who need it most.'

More Information on World Pension Issues