WIREDGOV

The TUC recently (Friday) called on the government to reverse its decision to suspend the state pension triple lock ahead of the chancellor’s spring statement this week.

• TUC analysis shows the government’s broken promise to keep the state pension triple lock will cost pensioners almost £500 a year 
• Real terms cuts to the state pension and soaring energy and food costs will force pensioners into poverty, warns union body 
• Chancellor’s Spring Statement last chance to reverse decision and tackle the growing cost-of-living crisis 

Analysis by the union body shows the government’s decision to abandon the pensions triple lock will cost pensioners almost £500 a year. 

In April the state pension will increase by 3.1%, instead of the 8.3% due under the triple lock formula, costing someone on the full new state pension £487 a year and someone on the full basic state pension £373 a year. 

But since that decision was taken inflation has soared and is now expected to exceed 8% this year, which means pensioners are facing a significant real terms fall in income this year. 

The union body says pensioners will be forced into poverty by rising fuel and food costs unless the government commits to its 2019 manifesto pledge to keep the triple lock.

Recent TUC analysis shows record-high energy prices could wipe out the entire value of pay rises this year. The union body says pensioners are particularly vulnerable to price hikes as they spend a higher percentage of their income on food and fuel. 

The TUC is calling on ministers to reinstate the pensions triple lock for 2022/23. 

And it is calling on government to reduce household costs by:  

• Introducing a windfall tax on energy companies and using the funds to provide energy grants that at least match future rises in the energy price cap for vulnerable households, replacing the inadequate loans of £200 proposed by government. 
• Rolling out a rapid programme of home insulation, targeted at lower income households and delivered by the public sector. 

TUC General Secretary Frances O’Grady recently said:  

“The UK has one of the least generous state pensions in the developed world.  

“The triple lock was introduced to close this gap and lift pensioners out of poverty. Abandoning it in the middle of a cost-of-living crisis will leave thousands of pensioners struggling to keep their heads above water. 

“With households across Britain pushed to the brink by skyrocketing bills, this is the worst time for the government to be cutting pensioners' incomes. 

“Reversing the decision to suspend the triple lock is one step it must take. But ministers must also protect households from being forced into poverty by rising bills. That means imposing a windfall tax on oil and gas profits and using the money raised to give hard-pressed families and pensioners energy grants – not loans. 

“The chancellor’s spring statement is the government’s last chance to reverse its broken promise on the triple lock.”

Editors Note

• Since 2011 the triple lock has guaranteed that the state pension rises each year by the highest out of average earnings growth, cost of living increases, or 2.5%. In September the government suspended the triple lock for one year, instead increasing state pensions in line with September’s CPI inflation figure. CPI inflation increased to 5.5% by January and is expected to peak at more than 8% this year. 
• Energy bills typically make up 6.6% of weekly spending for over 75s, compared to 4.2% of weekly spending for households of all ages. 
• Reinstating the triple lock is necessary and affordable and would still leave the UK’s level of spending on the old age benefits below comparable countries – according to the latest OECD figures, the UK spends less on old-age benefits as a proportion of GDP (7.1%) than the OECD average (7.7%).
• The Trades Union Congress (TUC) exists to make the working world a better place for everyone. We bring together the 5.5 million working people who make up our 48 member unions. We support unions to grow and thrive, and we stand up for everyone who works for a living. 

Contacts: 

TUC press office  
media@tuc.org.uk   
020 7467 1248