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Thomson Slams £500 Annual Loss for Pensioners due to Triple Lock Suspension
Gordon MP Richard Thomson has slammed the suspension of the ‘triple-lock’ by the UK Government which new research has shown is costing pensioners in the North-east nearly £500 per year.
House of Commons Library research concluded that the full rate for the New State Pension is currently £185.15 per week. However, if pensions had instead been uprated in line with earnings, it would amount to £194.50 per week – equating to a loss of £9.35 per week, or £488 per year.
It follows separate analysis - again from the House of Commons Library, conducted in June, which revealed that UK pensions are the least generous in North-west Europe by comparison to the average wage.
Commenting, Richard Thomson MP, said:
“This research is further compelling evidence that pensioners are being ripped-off by the UK Government.
“To date, under Westminster rule, UK pensioners have the least generous pensions in North-west Europe by comparison to the average wage – and this analysis shows things are only getting worse.
“At a time when households across the four nations are choosing between heating their homes and eating, to remove £500 from the pockets of pensioners is cruel and callous.
“After a decade of Conservative austerity, it’s time for change. By transferring full powers to Scotland’s Parliament, we can protect Scotland’s pensioners, eradicate poverty, and finally build the type of country we want to see.”
Notes:
House of Commons Library Research:
In response to unusually strong growth in annual earnings during the reference period for uprating, the earnings element of the triple lock was suspended for 2022/23, meaning the basic and new State Pension were to be uprated by whatever was higher of CPI inflation and 2.5%.
The Basic and New State Pension, and other inflation-linked benefits and tax credits, were increased by 3.1% from April 2022, in line with the CPI rate of inflation in September 2021.
Had the earnings link not been suspended then the State Pension would have been uprated by annual Average Weekly Earnings growth for May-July 2021, which was +8.3%.
New State Pension
In 2022/23, the full rate for the New State Pension (for those reaching State Pension age on or after 6 April 2016) is £185.15 per week. If pensions had instead been uprated in line with earnings then this amount would have been £194.50 per week.
This equates to a loss of £9.35 per week or around £488 per year.
Basic State Pension
In 2022/23, the full rate for the Basic State Pension (the core amount in the old State Pension system) is £141.85 per week. If pensions had instead been uprated in line with earnings then this amount would have been £149 per week.
This equates to a loss of £7.15 per week or around £373 per year.
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