Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential effect of making a further uplift in the rate of the state pension on the level of pensioner poverty as a result of increases in the cost of domestic energy.
The Government is committed to ensuring that older people are able to live with the dignity and respect they deserve, and the State Pension is the foundation of state support for older people.
Over the last two years, the basic and new State Pension have increased by more than 5.6%. This means that from April, the full yearly amount of the basic State Pension will be around £720 more in 2022/23 than if it had been up-rated by prices since 2010. That’s a rise of over £2,300 in cash terms.
The overall trend in the percentage of pensioners living in poverty is a dramatic fall over recent decades. There are 200,000 fewer pensioners in absolute poverty, both before and after housing costs, than in 2009/10.
The Government recognises that many households, including pensioners, will need support to deal with rising energy costs. In 2022/23 we are providing support worth £9.1 billion, composed of:
- A £200 discount for households delivered via their energy bill this autumn, paid back automatically over the next 5 years, spreading the increased costs of global prices over time in a way that is more manageable.
- A £150 non-repayable cash rebate to 80% of households to help with rising costs now, delivered as a payment from Government to Local Authorities, for implementation from this April via a payment to all households in Council Tax Bands A-D.
- £144 million of discretionary funding for Local Authorities to support households who need support but are not eligible for the Council Tax reduction.
Furthermore, our £500 million Household Support Fund will help vulnerable households, including pensioners, with the costs of essentials this winter. Those in need of support should contact their local council for more information on accessing the fund.
In addition to these measures, we are providing £3 billion over this Parliament to help more than half a million lower income homes become more energy efficient, saving them £290 per year on average.
This is on top of wider support available to pensioners through Pension Credit, the Warm Home Discount Scheme, Winter Fuel Payments, and Cold Weather Payments.