ONS figures show that average net pensioner income in 2009-10 was £338 per week after housing costs, a rise of 47 per cent since 1998-99.
The ONS also says the number of pensioners living below the poverty line fell by 1.1m between 1998-99 and 2009-10, after housing costs.
Labour has seized on the figures as demonstrating the positive effects of its policy of targeting poorer pensioners through means testing.
Shadow minister for pensions Rachel Reeves says: “When Labour came to power pensioner poverty was one of the most pressing challenges. Through targeted measures the Labour Government lifted over 1 million pensioners out of poverty, and today’s stats are proof of the progress made between 1998 and 2010.
“Further reforms introduced by Labour for savers today will reap benefits over a longer time – particularly the advent of automatic enrolment for workplace pension which will get up to 7 million extra people saving for their retirement.
“By allowing the winter fuel allowance to fall and cutting down the scope of auto-enrolment, the Tory-Led Government are moving in the wrong direction.”