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Cost of living crisis: Over 1.5 million South East working pensioners at risk of being £1,400 worse off

Stephen Morgan MP has warned a ‘Tory triple whammy’ of soaring prices, a tax hike and a lower State Pension could see 1,685,151 working pensioners in the South East £1,400 worse off over the next two years, according to new analysis published today.

New analysis from the House of Commons Library, commissioned by Labour, shows that working pensioners could be an average of £1,400 worse off over the next two years.

A working pensioner earning the average salary, who is in receipt of the State Pension and liable to pay the Health and Social Care Levy, faces a real-terms reduction in their income of £770 in 2022/23 and £622 in 2023/24, an almost £1,400 loss.

The analysis also shows the value of the State Pension is eroded in real-terms by nearly £300 next year and will still be lower in real-terms in 2023/24 even if it is uprated by 5.9%, the rate of inflation that is forecast for September 2022.

Commenting on the figures, the Member of Parliament for Portsmouth South, Stephen Morgan, said:

“Many retired people in Portsmouth work to contribute to our communities or to supplement their state pension, which is facing a real terms cut this April.

“It’s disgraceful that working pensioners are facing a triple whammy of soaring prices, tax rises and a real terms cut to their state pension. Under the Tories, pensioners are worse off.

“That’s why I will be voting in Parliament tonight to cut home energy bills and halt next month’s planned tax rise, to protect local pensioners. I call on local Tory MPs to do the same.”

Shadow Work and Pensions Secretary Jonathan Ashworth, added:

“Instead of protecting pensioner incomes as Boris Johnson promised, the Tories are cutting the state pension and clobbering pensioners in work with a tax rise; leaving them worse off by an eye-watering £1400.

“It’s daylight robbery and Boris Johnson has betrayed retired people.

“Pensioner poverty is increasing with older people facing impossible choices between eating and heating. The upcoming NICs rise should be halted this week and action should be taken to reduce energy bills by hundreds of pounds for those who need help as Labour has proposed.”