Stephen Morgan MP has labelled new revelations that 28,650 Portsmouth pensioners’ state pensions could be worth hundreds of pounds less in real terms over the next year ‘a disgrace’, as the government continues to struggle to get to grips with the cost-of-living crisis.
New Labour analysis has shown that, as a result of rising inflation and the Conservatives’ decision to only increase the state pension by 3.1 per cent, a basic state pension for an individual will be worth around £222 less in real terms over a year than in 2021/22.
For a couple it will be worth around £355 less. This is a real-terms cut to the state pension that is more than the amount Ministers are providing households to reduce their energy bills over the next year.
In the midst of a cost-of-living crisis, the Government’s decision to break the triple lock and give pensioners a real-terms cut to their pensions will leave older people in Britain paying hundreds of pounds more as a result of the rise in energy prices.
Labour’s plan to reduce energy bills would raise money to keep bills low through a one-off windfall tax on oil and gas profits to support all households, with households typically getting £200 off their bills. Labour’s plan will get £600 to the lowest income households while the Conservatives will only give them £350.
The Member of Parliament for Portsmouth South, Stephen Morgan, said:
“At a time of rising energy bills and prices going up in the shops, Tory MPs are pushing through a real-terms cut to pensions and the support families rely on.
“With working people, families and pensioners in Portsmouth struggling to make ends meet, along with rising child and pensioner poverty, it is clear proof that the Conservatives are simply not on the side of working people or pensioners.
“The fact that over 28,000 Portsmouth pensioners’ state pensions could face a significant hit this year is a disgrace and yet another example of Tory Ministers’ incompetence.
“I will always stand up for Portsmouth pensioners guaranteeing older people in our city the respect, security and prosperity they deserve.”
Jonathan Ashworth, Labour’s Shadow Secretary of State for Work and Pensions, also said:
“The Tory cost of living crisis is set to hammer pensioners hard.
“Not only have Tory MPs broken their manifesto commitment to the pension triple lock, Tory MPs have endorsed Boris Johnson’s plan to cut the value of the basic state pension by hundreds of pounds, wiping out any gain from the energy loan scheme.
“This real terms cut on top of rocketing heating bills, price rises and cuts to other support such as the free TV licence means thousands of pensioners face a tough, bleak year faced with impossible choices between heating or eating.
“With pensioner poverty on the increase this is a shameful way to treat those who have contributed so much to our country. Labour will always stand up for pensioners guaranteeing older people the security, prosperity and respect they deserve.”
