|From SNP Media:|
The SNP has said Scottish pensioners are being hammered by Tory cuts and broken promises – as new analysis shows pensioners will be £2,600 worse off on average because Rishi Sunak scrapped the Triple Lock on state pensions at the UK Budget.
Analysis from former UK Pensions Minister Sir Steve Webb shows pensioners will lose £520 next year, and a cumulative £2600 over the next five years, as a result of the decision to scrap the Triple Lock. With the OBR forecasting inflation will rise by over 4%, it means millions of pensioners could end up with a real terms cut in their state pension next year.
The UK Budget also failed to reverse the Tory decision to scrap the free TV licence for over 75s and failed to deliver any increase to key social security payments for pensioners, including the winter fuel payment, cold weather payment and the warm homes discount. Ian Browne, a retirement planning expert at Quilter, described this as “a huge blow to millions across the UK”.
In March, the UK government’s Households Below Average Income (HBAI) statistics revealed UK pensioner poverty levels have risen to a 15 year high – with 2.1million UK pensioners (18%) now living in poverty after housing costs, an increase of 200,000 on 2018/19.
Separate analysis from the House of Commons Library, in June, revealed UK pensions are the least generous in north west Europe by comparison to the average wage. UK pensioners currently receive around a quarter (28%) of the average working wage. In stark contrast, pensioners in Luxembourg and Austria receive 90%.
Commenting, SNP Pensions spokesperson Amy Callaghan MP said:
“After a decade of Tory austerity cuts, millions of older people are now living in poverty and the UK has one of the worst state pensions in the developed world.
“It beggars belief that, instead of tackling this Tory poverty crisis, the Chancellor is making it even worse by scrapping the Triple Lock and freezing benefits older people depend on.
“By choosing to make these damaging cuts, the Tory government has taken hundreds of pounds away from Scottish pensioners and will leave many struggling to get by.
“The Tories should be ashamed that pensioner poverty is at a 15 year high on their watch. It’s increasingly clear that the only way to keep Scotland safe from these Tory cuts is to become an independent country, with the full powers needed to protect pensioners and tackle poverty.”
‘Budget: Pensioners to lose £2,600 as triple lock halted for year’ – https://www.thetimes.co.uk/article/budget-pensioners-to-lose-2-600-as-triple-lock-halted-for-year-qj5nm5669
UK state pension ‘falling behind’ neighbouring countries, warns SNP –https://www.dailyrecord.co.uk/news/politics/uk-state-pension-falling-behind-24457391
‘Households below average income (HBAI) statistics’ –https://www.gov.uk/government/collections/households-below-average-income-hbai–2
‘Age UK responds to new Government HBAI pensioner poverty figures’ – https://www.ageuk.org.uk/latest-press/articles/2021/age-uk-responds-to-new-government-pensioner-poverty-figures/#_ftn1