Pension Credit and Cost of Living Support Grant

Anum Qaisar Excerpts

Wednesday 26th October 2022 Westminster Hall

[Ms Anum Qaisar (Airdrie and Shotts) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Dowd. I thank my hon. Friend the Member for Glasgow North East (Anne McLaughlin) for securing this important debate. She spoke incredibly eloquently and framed this debate extremely well. She is a passionate advocate on this subject, and is truly a champion of the cause.

The Back Benchers who have spoken today are correct: pensioners are facing the brunt of this cost of living crisis, which has been exacerbated by Tory mismanagement of the economy. It is imperative that we do all we can to support pensioners. As my hon. Friend the Member for Glasgow North East noted, pensioners across all four nations of the UK receive the lowest state pension, as a proportion of pre-retirement wages, of any country in north-west Europe. In a recent report released by the Joseph Rowntree Foundation, 2.1 million pensioners, almost a fifth of all pensioners, across the UK were classified as living in poverty. That number continues to grow and is a direct result of a decade of brutal Tory austerity.

As the hon. Member for Salford and Eccles (Rebecca Long Bailey) stated, the cost of living crisis has left pensioners making the difficult decision of whether they can afford to buy essentials. Age UK has warned that pensioners have had to switch off vital medical equipment to save on energy costs. This is not pensioners spending their money on luxury items. This is a crisis that threatens some of the most vulnerable in our society, and it is likely to worsen as we approach winter.

Although the support announced by the UK Government, particularly the £650 cost of living payment, is welcome, it is important that decisive action be taken to ensure that all those eligible for payment receive it. As has been stated, to qualify for that support, people must first be eligible for pension credit, but only seven in 10 of those entitled to the credit claim it. That means that each year more than £1.7 billion goes unclaimed; that represents more than 800,000 families not receiving the money to which they are entitled.

As the hon. Member for Merthyr Tydfil and Rhymney (Gerald Jones) mentioned, it is vital that we do more to ensure that all those eligible for pension credit receive it. It is deeply worrying, given the difficult financial times that we face, that so many families are not receiving the support for which they are eligible, so I echo the calls from all Back-Bench MPs today—well, the two Back-Bench MPs from Opposition parties, because there is none from the Government party. I echo their calls for the UK Government to take decisive action to ensure greater uptake of pension credit. It is critical that people understand that support is available to them.

As Member of Parliament for Airdrie and Shotts, I receive regular correspondence from pensioners asking for advice. The hon. Member for Merthyr Tydfil and Rhymney spoke of citizens advice bureaux. The Airdrie citizens advice bureau does a fantastic amount of work helping pensioners; actually, today it has its annual general meeting. However, studies have found that 45% of people in my constituency are worried about the future of their pensions. That is why it is so important for the UK Government to extend the eligibility period deadline to ensure that those who have failed to apply in time receive the extra payment. The level of support available can make all the difference during these times.

The Minister must commit to introducing a proper strategy to ensure that the benefits reserved to Westminster are given to those who are entitled to them. The UK Government would do well to copy the strategy of the Scottish Government, who see welfare payments as an investment in society, and so implement strategies to ensure the maximum uptake of benefits. I ask the Minister to agree to the ask of my hon. Friend the Member for Glasgow North East, and to specifically clarify what steps he will take to ensure that pensioners are aware of the financial assistance available to them.

It is clear that the only way we can ensure that Scottish pensioners and those across all four nations can receive dignity and fairness in retirement is by having full powers of independence. Time and again, the Westminster-based Tory Government short-change pensioners, whether it be through cutting pension credit for mixed-age couples, which costs some people thousands of pounds, or through the injustices faced by Women Against State Pension Inequality Campaign women. It is clear that Scotland cannot wait for Westminster to act.