Cost of Living Increases: Pensioners

Christine Jardine Excerpts

Monday 21st March 2022 Commons Chamber

[Jonathan Ashworth]

My hon. Friend—I will call him a friend as a fellow Leicester City fan—speaks, as usual, with passion and eloquence on behalf of his constituents. The poverty we are now facing is so desperate and severe, and the destitution so acute, and it is felt across the whole of the United Kingdom. I hope Ministers respond to the representations we are making tonight, and I hope the Chancellor responds to them on Wednesday.

[Christine Jardine (Edinburgh West) (LD)]

The right hon. Gentleman is making a very good case and illustrating the scale of the problem we face. Does he agree that since we now know that 40% of pensioners in this country will be forced into poverty for up to a year in any nine-year period, the Government should have listened to us when we said earlier in this Session that doing away with the triple lock even temporarily was a rash move, and that pensioners are now paying the price for that?

[Jonathan Ashworth]

The hon. Lady anticipates the meat of my speech and has put her point on the record with typical aplomb and eloquence.

Martin Lewis of Money Saving Expert has warned that he simply has no tools left to advise people on how to manage their finances; he said that people are literally going to have to “starve or freeze.” Let us look at the facts: 2 million pensioners in poverty and the number rising; 200,000 more pensioners falling into poverty in the last year; one in five people of pension age now living in poverty; and 1.4 million older people in England in fuel poverty, with tens of thousands more likely to be pushed into fuel poverty. As we also know that pensioners spend a significant proportion of their income on energy and food and the basic necessities of life, this is the moment when the Government should be helping the Maureens and Alberts in all our constituencies with extra help with the cost of living. But instead of helping those pensioners in every constituency, Ministers broke their promise on the triple lock and are forcing through deep real-terms cuts in the value of the basic state pension. When I meet and speak to pensioners across the country—older people who are struggling—there is deep despair, and indeed bewilderment, that the Government have abandoned them, having promised them so much.

In the general election campaign, the Prime Minister said:

“We will keep the triple lock, the winter fuel payment, the older person’s bus pass”

to help retirees with the cost of living. Yet just at the moment when pensioners are shivering in the cold, skipping hot meals and anxious and worried about paying the bills, rather than helping retirees with the cost of living, Ministers abandoned the triple lock, a broken promise that the former Conservative Pensions Minister, Baroness Altmann, warned would

“plunge more elderly people into poverty”.

She said:

“With rising energy costs, I fear many of the poorest will be even less able to afford to heat their homes adequately over the winter…To take away their much needed and promised protection, knowing inflation pressures are rising, seems unjustifiable”.

The former Conservative Pensions Minister was absolutely right.

I read recently—in the money section of The Daily Telegraph, no less—that

“pensioners will be worse off after the Chancellor capped the rise in the state pension…this will equate to pensioners taking a real terms cut of £7.45 a week, or £388 a year.”

That is a cut of around £30 a month. These are significant sums of money. Given that the state pension is the biggest source of income for most pensioners, and given that retired women in particular rely on the state pension and other benefits, such as pension credit, for over 60% of their retirement income, it will be retired women again who are disproportionately hit by this deep cut to the basic state pension.