Cost of Living Increases: Pensioners — House of Commons, 2022-03-21
Topic: Labor
Jerome Patrick Burke Mayhew (Conservative, Centre-right): Last Saturday, like many hon. Members across the House, I was undertaking street surgeries and knocking on doors in my constituency. I spoke to several tens of pensioners, and it is absolutely right to say that the cost of living crisis is very much an issue, but it was also noticeable that people understand and recognise the causes of the crisis—the post-covid supply bottlenecks and, increasingly, the price that we all have to pay to support Ukraine and stand up to Russian aggression. I found universal support for the Government’s strong position and recognition that if we do not stand up to President Putin now, we will only make him stronger and ourselves weaker Although residents understand the causes, that does not make the cost of living crisis any less real, particularly in rural areas such as mine in Broadland where car transport is a necessity and homes are often heated by oil. People on fixed incomes are most vulnerable to inflation, which is why the Conservative Government over the past decade have done so much to raise pensions from the lows of the last Labour Government. In 2010, Labour spent £70 billion on pensions. The Conservatives have increased that by £35 billion—a 35% increase—while inflation, at 22%, amounts to a 13% real terms increase. Average earnings have been outstripped by pensions growth by 8% during this period. It is the case that state pensions are now at their highest, relative to earnings, for 24 years. It is so different from Labour, famous for its 75p increase in pensions Pensions are not just state pensions. Some 88% of all eligible employees are now participating in a private pension. That is not by chance; it is as a direct result of innovative Government policy. Pre auto-enrolment, fewer than 50% of workers benefited from an additional pension. Because of Government intervention an additional £28.4 billion has been saved every year since 2012 and continuing, raising living standards for pensioners of the future The Government are not just relying on years of pension increases, but are taking further steps to help pensioners with increased energy costs. We have already heard about the cold weather payment scheme, which provides £25 per cold weather week for those on pension credit, income support, income-based jobseekers’ allowance, income-related employment and support allowance or universal credit We have heard about the warm home discount, with an additional payment of £150 increased to 3 million households most in need. We have also heard about a reduction in council tax of £150 this year for council tax bands A to D, and the £200 of delayed payments for energy bills this autumn to help flatten the impact of the spike in energy prices. Then there is £144 million of discretionary fund. The two councils in my patch are considering applying that to oil heating support In addition to all those schemes, we know about the pension credits, which are guaranteed to top up weekly income to the equivalent of £9,200 a year. It is very heartening to hear the Government’s strenuous efforts to increase the take-up of that scheme. We have the spring statement later this week. I, like many others, am hopeful that there will be additional assistance with the cost of living, particularly for pensioners and particularly for rural areas, such as the one that I am lucky enough to represent. I know that the Chancellor will continue to do all he can to support pensioners and others on lower incomes. If he does so, he will be building on a decade of support by Conservative Governments.