Cost of Living Increases: Pensioners

Nigel Evans Excerpts

Monday 21st March 2022 Commons Chamber

[Several hon. Members rose—]

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. Hon. Members can see how many colleagues want to participate in the debate, so from the outset they should be thinking about keeping their contributions to about five minutes.

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[Several hon. Members rose—]

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. I will try to get everybody in with relatively equal time, so I am dropping the time limit to four minutes.

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[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

The respected Joseph Rowntree Foundation annual poverty report shows increasing poverty over people’s life course—children, working age adults and pensioners. Both the JRF and the Equality and Human Rights Commission say that the key determinant of this rise in poverty is our inadequate social security system, which has been decimated over the last 12 years. The safety net that should be there for all of us in our time of need, providing dignity in retirement, is failing us—it just is not there—and it was doing so before the energy crisis.

Professor Sir Michael Marmot has identified the declining value of social security support and the lack of protection that this provides as contributing to the fall in life expectancy of those on the lowest incomes. More than 14.5 million people in this country are living in relative poverty—that is more than one in five of us—and using the JRF figures we see pensioner poverty increasing by 500,000 since 2010 to 2 million.

Pensioners living on their own, predominantly women, are particularly at risk of poverty. They account for 1.2 million of the 2 million pensioners living in poverty, and we see an associated decline in women’s life expectancy and healthy life expectancy. I hope the Government will bear that in mind as they embark on their consultation on the state pension age. I know the Pensions Minister feels this keenly, but I offer a gentle reminder that groups representing women born in the 1950s estimate that between 2010 and 2020 more than 80,000 older women died before becoming eligible for their state pension, after their pension age was increased from 60 to 66, catching many unawares.

In the remaining time available to me, I want to talk about disabled people living in poverty. The report published last year by the all-party group on health in all policies, which I was involved in developing, shows the savage impact of a slew of social security policies on disabled people in particular. The EHRC estimates that disabled families have lost £3 out of every £10, and similar figures have been produced by the Disability Benefits Consortium. As we know, we have record levels of in-work poverty—work no longer protects people from poverty—but what about those who cannot work because of sickness or disability? We must never forget that nine out of 10 disabilities are acquired. It could happen to any of us. We could be walking down the road and have an accident, or we could contract an illness. In a civilised society that is one of the richest in the world, one would expect that, just as we have the NHS, we would have the disability protection that that affluence affords, but we do not.

The social security cuts and the extra costs people face by virtue of their disability mean that disabled people are the most likely to live in poverty. Of the 14 million disabled people in this country, a third are living in poverty. Where is the adequate system for them?

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. Sorry, but we are under pressure of time. The wind-ups will begin no later than 9.40 pm, and anyone who has participated in the debate is expected to be here for them.

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[Beth Winter]

I fully agree with my hon. Friend. Indeed, this Government have an absolutely appalling record. It is financial punishment for older people. I never cease to make reference to the fact that behind these statistics are real people. In my constituency in Cynon Valley, older people are disproportionately affected by the cost of living crisis. We have an older housing stock—terraced housing—and high levels of health inequality.

To add insult to injury, two of the campaigns I am involved with in my constituency show that older people are being short-changed by billions of pounds. I refer to the Women Against State Pension Inequality campaign and the Mineworkers Pension Scheme. I thank in particular Mi Morgan and her husband in Cilfynydd in my constituency, who work tirelessly on the Mineworkers Pension Scheme campaign, and Dilys Jouvenat, who leads the WASPI campaign back home in Cynon Valley.

People who have helped all their lives to build this country and their communities are suffering, and this Government are not responding to their needs. The cost of living crisis is driven by the Tories’ betrayal of their manifesto pledge to maintain the triple lock and by the regressive tax increases on working pensioners. Perhaps most importantly, it is being driven by inflation outstripping salaries, social security and pension payments, and all that is happening on the Tory Government’s watch.

On national insurance, under the Chancellor’s plans, around 1.3 million working pensioners will be asked to pay the health and social care levy through national insurance. Labour is calling on the Government to halt their poorly-thought-through tax rises, particularly when there are people with broader shoulders who could take the burden that must be borne.

Worst of all, the Tories have chosen to impose a real-terms cut to state pensions this April by sticking to last September’s rate of inflation, which was 3.1%. We know the rate of inflation is likely to be much higher than that. That is why last month in this Chamber I warned that the proposed pensioner up-rating order would increase the level of pensioner poverty in this country, and supported the Child Poverty Action Group, the Joseph Rowntree Foundation and other organisations that called for a 6% increase—and indeed we need an even higher increase now, given the likely coming rise in inflation. The 3.1% increase in pensions is an absolute insult to older people in our country.

I will quicky refer to what is happening in Wales, where the Welsh Government are trying to take action. In their recent budget, they extended eligibility criteria for the winter fuel scheme to more people, which has been welcomed by groups such as the Bevan Foundation. The Older People’s Commissioner for Wales has announced an action plan: in addition to extending the eligibility criteria, she says we must maintain that for the second payment due later this year, and that we need a plan published for increasing the take-up of pension credit. Recently the Welsh Affairs Committee, on which I sit, published a report on the benefits system in Wales, noting that much greater awareness raising of people’s entitlements to benefits is needed, because a total of £1.7 billion in pension credit went unclaimed last year.

The UK Government must take urgent action. Some of the things they could do include increasing their financial offer to cushion the rise in energy bills through a windfall tax on those who can afford it, cutting VAT on energy bills and cutting the national insurance rise. The 3.1% rise in pensions, when the Bank of England is hinting that inflation may hit 10%, tells us all we need to know. The Chancellor must act this week. I urge hon. Members to support this motion.

[Mr Deputy Speaker (Mr Nigel Evans)]

One person has withdrawn unexpectedly, so I think we are able to go back to five minutes. Ian Byrne, it is Christmas.

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[Several hon. Members rose—]

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. I do apologise, Wendy. I hinted that you would have come in a bit earlier, so you may as well come in now—my error.

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[Matt Rodda]

I am afraid that I am out of time. Every Member of the House will have constituents for whom the next few months will be filled with worry about bills. We owe so much to our pensioners. They have worked so very hard and paid in all their lives, raised their families and given so much to our communities. So far, the Prime Minister and the Chancellor have failed to listen to pensioners and they have failed to take any meaningful action to help them at this very difficult time. Theirs is a record that they should be ashamed of: the state pension cut; the triple lock abandoned; energy bills up; food bills up; and pensioner poverty up.

The Minister now has a chance to set out what real help the Government are going to offer our pensioners. I hope that he takes this opportunity to show that the Government listen and understand. He has the opportunity, here and now, to give pensioners peace of mind in their most desperate hour of need. Pensioners need to know that help is available. We need urgent action now—please. It is clear that only Labour will help older people, and I commend the motion to the House.

[Mr Deputy Speaker (Mr Nigel Evans)]

I have heard “Cynon Valley” pronounced in so many different ways over the past 30 years. You pronounced it perfectly.

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[Guy Opperman]

Yes, it has. I am terribly sorry to have to point out that on this particular point the hon. Gentleman is utterly wrong. The number of pensioners living in absolute poverty has fallen. There are now 200,000 fewer pensioners in absolute poverty, both before and after housing costs, than there were in 2009-10.

My hon. Friend the Member for Broadland (Jerome Mayhew) made a very good speech and was right to mention the impact of the Ukraine conflict. He was also right to talk about automatic enrolment, which has transformed private pensions in his constituency, with 2,150 employers supporting 9,000 employees who are saving 8%. That is a cross-party, cross-Government implementation of real impact to address pensioner poverty on a long-term basis. It is a 20-year policy that is transforming this particular situation.

This Government are committed to ensuring that people have security and dignity in retirement. We have recognised and acted on the concerns of pensioners struggling with the cost of living, and we will continue to spend £129 billion on pensioner benefits this year, which includes the £105 billion on the state pension. Obviously there is also the £9.1 billion energy rebate pack and the £2 billion on winter fuel payments and the warm homes discount scheme. I strongly urge the House not to accept this Labour motion.

Question put and agreed to.

Resolved.

That this House is concerned that older people and pensioners risk being at the sharp end of the cost of living crisis as a result of spiralling inflation, a lack of Government action on household energy bills, a poorly thought-through tax rise on older people in work and a real-terms reduction to the state pension; notes that the state pension is being cut in real-terms by hundreds of pounds a year and that working pensioners will begin paying the Health and Social Care Levy from next year; regrets that levels of pensioner poverty and pensioner debt have risen over the last decade even before the current cost of living crisis with almost one in five pensioners now living in poverty; and calls upon the Government to cut home energy bills, halt the planned tax rise on working pensioners and ensure older people are protected from the cost of living crisis.

[Mr Deputy Speaker (Mr Nigel Evans)]

Minister, your pronunciation of “Cynon Valley” was very good as well.