£500 better off: Pensioners Thomas and Esther Summers retired from their newsagentcy business in 1989.

Mr Summers, 81, said: "While working, we could never go out on the spur of the moment but now we go for walks and days out. We have to keep a check on our spending but we can afford some luxuries."

Mr and Mrs Summers, 75, enjoy a bottle of wine a week. They own their own home in Saltdean and drive a 1200cc car. They have private pensions topped up by the State pension.

They will get an extra £4.80 a week due to the pension increase. Their private pension is linked to inflation, which is currently one per cent.

Mr Summers said council tax and petrol increases had made a big hole in what the Chancellor gave them in increased pensions last year.

Mr Coward said: "The combined £4.80 per week increase in the pension and increases to tax allowances for pensioners should please Mr and Mrs Summers. Improved winter fuel payments of £200 each year will also help them."

Their income should increase by more than £500 a year.