Cost of Living Increases: Pensioners

Alex Sobel Excerpts

Monday 21st March 2022 Commons Chamber

[Matt Rodda (Reading East) (Lab)]

It is a pleasure to sum up in today’s important debate on behalf of the official Opposition.

I would like to start by thanking Members from across the House who have spoken in today’s debate. I thank the hon. Member for Kilmarnock and Loudoun (Alan Brown) for pointing out the pressure on pensioners. The hon. Member for Amber Valley (Nigel Mills) spoke about the need for more Government help, which I thought was telling from a Government Member. My hon. Friend the Member for Lancaster and Fleetwood (Cat Smith) spoke movingly about the high energy costs for residents living away from the gas grid. The hon. Member for Darlington (Peter Gibson) talked about the need for a long-term plan for pensioners. My hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams) talked about the pressure on disabled people—obviously, many pensioners are disabled. The hon. Member for Broadland (Jerome Mayhew) talked about the cost of living crisis. My hon. Friend the Member for Cynon Valley (Beth Winter)—I hope I have pronounced her constituency correctly—spoke about the need for urgent help for pensioners.

My hon. Friend the Member for Liverpool, West Derby (Ian Byrne) talked clearly about the way that pensioners are living in poverty in his seat and across the country. My hon. Friend the Member for Kingston upon Hull West and Hessle (Emma Hardy) spoke particularly movingly about a whole generation of pensioners. That brought to mind figures from my childhood, and I am sure that we were all touched by her speech.

The hon. Member for North Shropshire (Helen Morgan) spoke about her local pensioners, and the hon. Member for North East Fife (Wendy Chamberlain) talked about pensioners having to choose between heating and eating. The hon. Member for Leicester East (Claudia Webbe) spoke about pensioners having to pay more to keep warm, and my hon. Friend the Member for Liverpool, Riverside (Kim Johnson) mentioned the real-terms cut to the state pension. Finally, my hon. Friend the Member for Luton South (Rachel Hopkins) spoke about the most vulnerable people being left to suffer by the Government.

As my right hon. Friend the Member for Leicester South (Jonathan Ashworth), the shadow Secretary of State, said, pensioners who have worked hard and paid in all their lives now face an unprecedented cost of living crisis. Food prices are up, energy prices are up and the cost of living is going up. The cost of living is a crisis made in Downing Street, but, sadly, it is felt on every street across this country. Pensioners are at the sharp end, facing the inevitable choice of having to pay for heating or eating. Not since the 1970s have pensioners faced a fall in their standard of living as great as the one that faces them in the next few months.

As I am sure we all agree, the recent events in Ukraine have been absolutely shocking. However, this cost of living crisis predates Putin’s war and his vicious attack on the Ukrainian people. The atrocities unfolding in Europe have brought into stark relief the need for the UK to radically address our energy security. However, it was clear in the autumn that food and fuel prices were rising steeply, yet the Government actually made matters worse, despite all the warning signs. The Prime Minister and the Chancellor decided to break the pension triple lock, breaking their manifesto commitment and betraying the people who are now struggling to pay their weekly food bills.

To add insult to injury, the Government failed to cut energy bills even when it was clear that a windfall tax would have provided the cash to ease heating bills for pensioners. Energy giants are enjoying record profits and see their companies as a “cash machine” at the same time as pensioners face the toughest of choices. We have to ask ourselves: what do the Government have against pensioners? Why is the plight of our pensioners not worthy of intervention by the Government? How can they do so little when we know the consequences will be so dire for so many older people?

Perhaps the Prime Minister and the Chancellor were distracted by the Government’s internal instability following the revelations about parties at No. 10 during last year’s lockdown. Or perhaps they just failed to grasp what it is like to cope on a modest income, as many colleagues mentioned so eloquently today. For whatever reason, I am afraid that the Government have simply failed our pensioners at the very time when pensioners most needed their help.

My right hon. Friend the shadow Secretary of State summed up well the sorry state that we find ourselves in today. Two million pensioners are living in poverty and that number will only grow because of the choices made by this Government. Some 1.4 million older people are fuel-poor. The scrapping of the triple lock has robbed pensioners of £30 a month, which is a significant amount for people on a fixed income. Energy bills are rising by 54% already and are likely to increase by a staggering further 25% in October. Some 1.3 million working pensioners will be dragged back into taxation though a national insurance rise that will pick their pockets to fund a health and social care levy.

Pensioners are being hit very hard.

Today’s debate has been an important opportunity to raise the very serious cost of living crisis now facing our pensioners.

[Alex Sobel]

Will my hon. Friend give way?

[Matt Rodda]

I am afraid that I am out of time. Every Member of the House will have constituents for whom the next few months will be filled with worry about bills. We owe so much to our pensioners. They have worked so very hard and paid in all their lives, raised their families and given so much to our communities. So far, the Prime Minister and the Chancellor have failed to listen to pensioners and they have failed to take any meaningful action to help them at this very difficult time. Theirs is a record that they should be ashamed of: the state pension cut; the triple lock abandoned; energy bills up; food bills up; and pensioner poverty up.

The Minister now has a chance to set out what real help the Government are going to offer our pensioners. I hope that he takes this opportunity to show that the Government listen and understand. He has the opportunity, here and now, to give pensioners peace of mind in their most desperate hour of need. Pensioners need to know that help is available. We need urgent action now—please. It is clear that only Labour will help older people, and I commend the motion to the House.

--- Later in debate ---

[Guy Opperman]

I can answer that question easily. There is no limit whatsoever. This is a means-tested benefit which was set up by Gordon Brown. If there were a 100% take-up, the Government would pay. If the take-up is 70%, the Government pay.

I was going to address some of the comments made by the hon. Gentleman in his interesting speech. I genuinely felt that it was the policy of his party to raise fuel duty, which is certainly an interesting approach to cost of living difficulties. He made no mention of the powers conferred by sections 24, 26 and 28 of the Scotland Act 2016 and the capability of his Government to intervene if they should choose to do so—which, to be fair, they have done. The hon. Gentleman shrugs his shoulders and heaves a sigh, but he probably does that when he tries to analyse and understand the policy of that humble merchant banker-crofter the right hon. Member for Ross, Skye and Lochaber (Ian Blackford), whose approach to the state pension is something that we all struggle to comprehend.

I did test the hon. Gentleman by asking him what genuinely was the Scottish National party policy on the state pension in the unlikely event that the Scottish people were unwise enough to choose independence. Is it the old policy that was agreed previously, or is it the new policy of his leader in Westminster that the rest of the UK should pay for this? I genuinely do not understand, and I think one of the reasons why the popularity of independence is falling in Scotland is the fact that the leadership that the hon. Gentleman so strongly supports are not making the case in any way whatsoever.

The arguments of the hon. Members for Cynon Valley, for Liverpool, West Derby (Ian Byrne) and for Leicester East (Claudia Webbe) centred on the issue of the state pension age. Let me say, with respect, that that is a matter that has been determined by successive Governments. As I pointed out earlier, this Government continued, as did the coalition Government, the policy of the Labour Government under Tony Blair and Gordon Brown. I realise that no one is a Blairite any more, but those 13 years saw exactly the same policy. The arguments put forward on that issue were comprehensively rejected by the Court of Appeal.

The situation in respect of energy prices has been addressed in detail by the Secretary of State, but it is right to make the point that the key intervention was announced by the Chancellor on 3 February with a £9.1 billion energy bill rebate, and there is in excess of £12 billion of support over this financial year and the next to ease cost of living pressures. We have set out in sufficient detail the £200 rebate for households, the £150 non-repayable council tax rebate for all households in bands A to D, and the fact that local authorities will in addition have access to £144 million of discretionary funding to support households in need, regardless of their council tax band.

[Alex Sobel]

I spoke to my constituent Maggie Stead today. Maggie has been diagnosed with chronic lymphocytic leukaemia. She told me that she cannot afford her rising bills on her state pension, and that she sits at home in her hat, scarf and gloves and eats only one meal a day. I am doing everything I can to help Maggie. What can the Minister tell me to tell her about how we can support her, given the ever-increasing energy bills that she cannot afford?

[Guy Opperman]

Quite clearly she should be contacting her local authority, because several million pounds has been set aside for individual councils up and down the country so that they have the capability to intervene for such constituents. Obviously I would hope the hon. Gentleman has advised her to apply for pension credit, which could unleash £3,000-plus for her, and although I cannot comment on individual circumstances, I presume she will qualify for the winter fuel payment, which runs to £2 billion, the cold weather support payment and the various other supports that exist, including the warm home discount scheme, where payments will increase from £150 in 2022-23, with spending rising from £354 million to £475 million. Pensioner households are able to access the £144 million of discretionary funding from local authorities to support households who need support but are ineligible for council tax rebates.

My hon. Friend the Member for Amber Valley (Nigel Mills) rightly defended the record of the coalition and of this Conservative Government. I will just briefly remind the House that the change to the state pension that has been taking place under the coalition—to be fair to our Liberal Democratic colleagues—and the Conservative Government has been absolutely transformational. There has been a 35% increase in the state pension, with massively enhanced figures going forward. Without a shadow of a doubt the triple lock, which the right hon. Member for Leicester South (Jonathan Ashworth) never mentioned, has had an impact. Not once in any of the 13 years of the Labour Government did they have a triple lock—not once. Gordon Brown famously raised the state pension by 75p in 1999, so I will take no lessons on that from Labour.

My hon. Friend the Member for Darlington (Peter Gibson) is a brilliant champion for his local area, and he was right to say that pensioner poverty has decreased under this Government—