Analysis from Labour shows that the basic state pension will be worth hundreds of pounds less in real terms over the next year, affecting 10,205 pensioners in Manchester Withington.
The analysis shows 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 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.
Jeff Smith, MP for Manchester Withington, said:
“At a time of rising energy bills and prices going up in the shops, Tory MPs have pushed through a real terms cuts to pensions and the support families rely on.
“With working people, families and pensioners struggling to make ends meet along with rising child & pensioner poverty this is clear proof that the Conservatives are simply not on their side.
“It’s clear that only Labour will always stand up for pensioners guaranteeing older people the respect, security and prosperity they deserve.”