Analysis from Labour shows that the basic state pension will be
worth hundreds of pounds less in real terms over the next year.
The analysis shows that, as a result of rising inflation and the
Conservatives’ decision to only increase the state pension by 3.1
per cent, a basic state pension for an individual will be
worth around £222 less in real terms over a year than in
2021/22.
For a couple it will be worth around £355 less. This is a
real-terms cut to the state pension that is less than the amount
Ministers are providing households to
reduce their energy bills over the next year.
The motion to approve Conservative plans for a real-terms cut to
state pensions is set to be voted on by MPs today (Monday 7
February).
In the midst of a cost of living crisis, the Government’s
decision to break the triple lock and give pensioners a
real-terms cut to their pensions will leave older people in
Britain paying hundreds of pounds more as a result of the rise in
energy prices.
Labour’s plan to reduce energy bills would raise money
to keep bills low through a one-off windfall tax on oil and gas
profits to support all households, with households typically
getting £200 off their bills. Labour’s plan will get £600 to the
lowest income households while the Conservatives will only give
them £350.
Commenting, , Labour’s Shadow
Secretary of State for Work and Pensions, said:
“The Tory cost of living crisis is set to hammer pensioners hard.
“Not only have Tory MPs broken their manifesto commitment to the
pension triple lock, today they will endorse Boris Johnson’s plan
to cut the value of the basic state pension by hundreds of
pounds, wiping out any gain from the energy loan scheme.
“This real terms cut on top of rocketing heating bills, price
rises and cuts to other support such as the free TV license means
thousands of pensioners face a tough, bleak year faced with
impossible choices between heating or eating.
“With pensioners poverty on the increase this is a shameful way
to treat those who have contributed so much to our country.
Labour will always stand up for pensioners guaranteeing older
people the security, prosperity and respect they
deserve.”
Ends
Notes to editors:
The Government plans to uprate pensions by 3.1% in the 2022/23
financial year, reflecting CPI in September 2021. According to
the latest Bank of England Forecasts, CPI is set to average
around 6.2% in 2022/23.
https://www.bankofengland.co.uk/monetary-policy-report/2022/february-2022
https://www.gov.uk/government/publications/benefit-and-pension-rates-2022-to-2023/proposed-benefit-and-pension-rates-2022-to-2023
As a result of this discrepancy, a basic state pension for an
individual will be worth around £222 less in real terms over a
year than in 2021/22. For a couple it will be worth around £355
less.
|
2022/23 real terms loss in pension
income
|
Full year
|
April-October
|
|
Individual
|
£222
|
£110.89
|
|
Couple
|
£355
|
£177.34
|
For a couple, this means the real terms loss in pensions income
is greater than the amount saved by the government’s measures to
reduce energy bills in 2022/23.
Analysis for couples based on one person's National Insurance
Contribution with both people under 80.
Labour’s energy plan: https://labour.org.uk/press/labour-slams-decade-of-failure-on-british-energy-with-plan-to-save-families-200-to-ease-immediate-crisis-costs/
