Pensioners: Cost of Living

08 Apr

Question

The Parliamentary Question session concerning pensioners and the cost of living unfolded primarily around the fiscal strategies being taken to support older citizens in light of rising living costs. Central to the discussion were issues surrounding pension increases, the winter fuel payment concerns, and broader governmental measures like the warm home discount. The debate highlighted several challenges faced by pensioners, including high energy costs and historical policy impacts.

Torsten Bell outlined that more than 12 million pensioners received a 4.1% increase in their state pensions, markedly above the inflation rate. This increase is valued at £470 annually for the full new state pension and £360 for the full basic state pension, a significant stride from the government's side to safeguard pensioners against financial strains. Bell also pointed out revisions to pension credits and the expansion of energy-efficiency measures to counter previous administration's cuts in energy installations, which had long-term repercussions on elderly citizens' living conditions.

4.1% increase in state pensions.

Implemented to cushion pensioners against inflation, resulting in a £470 annual increase for the full new state pension.

The dialogue underscored the importance of improving support for energy expenses, especially after the contentious decision by former administrations to reduce energy installation rates by 90%. The government indicated additional measures to ensure pension adequacy, forecasting a potential state pension increase of up to £1,900 by the end of the current parliamentary term.

£360 annual increase for the full basic state pension.

Part of the same initiative as the 4.1% hike to aid various pension categories.

Chris Vince from the Labour party lauded the state's pension rise but sought further action to combat the broader cost of living crisis left by former governments, to which Bell assured continued commitment to above-inflation pension rises across the Parliament term.

Outcome: The session reinforced the government’s strategic focus on expanding pension reliefs, including state pension increases and energy bill support initiatives. Key commitments included continued pension enhancements aiming at significant increases by the Parliament's end, promising sustained financial relief for pensioners amidst ongoing inflation concerns.

50,000 more individuals accessing pension credit over the past 6 months.

A government effort to expand the support network for financially vulnerable pensioners.

Outcome

The session concluded with the government asserting continued focus on pension increases and broader support measures to alleviate financial burdens experienced by pensioners. This focus is set to ensure pensions are consistently elevated above inflation, signaling further support in the coming years.

Key Contributions

Anna Sabine

Liberal Democrats

Queried fiscal steps taken for pensioners struggling with cost of living.

Torsten Bell

Outlined government measures including 4.1% state pension increase and additional benefits.

Chris Vince

Labour

Emphasized positive impact of pension increases on constituents.

Original Transcript

Anna Sabine

Frome and East Somerset

Question

UIN: 903666

10. What fiscal steps she is taking to support pensioners with the cost of living.

The Parliamentary Secretary to the Treasury

Torsten Bell

12:11

The Government’s top priorities for pensioners are to raise the state pension and to rescue the NHS. This week more than 12 million pensioners saw their state pensions rise by 4.1%, well ahead of inflation.

That is worth an extra £470 a year for someone on the full new state pension, and £360 a year for those on the full basic state pension.

Anna Sabine

12:11

I have 250 pieces of outstanding casework relating to the winter fuel payment. An elderly constituent emailed me during the winter, enclosing a picture showing that her thermometer was at 15° and saying that she had to remain in bed for as long as possible each day to stay warm.

Given that energy bills are now increasing, does the Minister agree that the decision to cut the winter fuel payment has already had serious consequences for the welfare of pensioners throughout the country?

Torsten Bell

12:11

What the Government are doing is raising the state pension, extending the warm home discount, and ensuring that an extra 50,000 people have had access to pension credit over the last six months.

When Members talk about mistakes that have had lasting consequences for pensioners, I look back to the coalition Government’s decision to cut the rate of energy installations by 90%.

Pensioners are living with that legacy, in leaky homes, day in day out, but this Government are getting on with insulating homes throughout the country.

Chris Vince

Harlow

Lab/Co-op

The 4.1% increase in the new state pension will make a huge difference to pensioners in my constituency. What more are the Government doing to tackle the cost of living crisis left by the last Government?

Torsten Bell

I thank my hon. Friend for being a regular attender at Treasury questions, and indeed, as far as I can work out, at every other departmental questions session.

He is right to suggest that we will do more, because we are not just increasing pensions above the rate of inflation this year but doing so throughout the current Parliament, and that should raise the state pension by up to £1,900 by the end of the Parliament.

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