12,000 pensioners in Luton South constituency could see any energy bill savings wiped out by Tories’ real-terms cut to the state pension
Analysis from Labour shows that the basic state pension will be worth hundreds of pounds less in real terms over the next year, affecting 12,000 pensioners in Luton South.
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 real terms cut to the state pension is more 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 was pushed through by Conservative MPs on 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.
Rachel Hopkins MP said:
“At a time of rising energy bills and soaring inflation, Conservative MPs have pushed through a real terms cut to pensions, wiping out any potential gain from the Government’s measly energy loan scheme.
With working people, families, and pensioners struggling to make ends meet, along with rising child and pensioner poverty, this is clear proof that the Conservatives are not on our community’s side.
This is a shameful way to treat those who have contributed so much to our country. It’s clear that only Labour will stand up for Luton’s pensioners, guaranteeing older people the respect, security and prosperity they deserve.
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.
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|
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/