Recent figures have revealed that 1,298,911 of working pensioners in the North West are set to be an average of £2,300 worse off over the next two years because of three broken Tory manifesto commitments.
In their 2019 General Election manifesto, the Tories promised to ‘keep the Triple Lock’ on State Pensions, ‘not to raise the rates of National Insurance’ and to ‘introduce new measures to lower energy bills’. Instead, we’ve seen the biggest real-terms cut to the State Pension in fifty years, hiked taxes and allowed energy bills to soar.
Tony said, “The Prime Minister has abandoned his promise to help Britain’s retirees with the cost of living crisis.
“By breaking the triple lock, the Conservatives have imposed the biggest real terms cut in the state pension for 50 years and clobbered pensioners with more tax, on top of soaring energy bills and rising prices.
“People deserve the security of a good pension and the respect of politicians, not broken promises. That’s what Labour will continue to fight for, in Rochdale and around the country.”
New analysis from the House of Commons Library shows that working pensioners – who are uniquely hit by all three of these broken Tory manifesto commitments – are set to be an average of £2,300 worse off over the next two years.
It shows working pensioners in the North West will see real-terms reductions in their incomes over the next two years from the broken Triple Lock, soaring energy costs – captured by spiralling inflation – and a Tory tax hike:
• A working pensioner earning £16,000 faces a real-terms reduction of £1,790.
• A working pensioner on the average salary for someone over 60 of £24,900 faces a real-terms reduction of £2,300.
• A working pensioner earning £40,000 faces a real-terms reduction of £3,200.
Labour is reiterating its call on the Government to bring forward an Emergency Budget to urgently tackle the Tory cost of living crisis.
—Ends—
Notes to editors:-
- The 2019 Tory Manifesto promised to ‘keep the Triple Lock’ on State Pensions, ‘not to raise the rates of National Insurance’ and to ‘introduce new measures to lower energy bills’.
- “We will keep the triple lock”, page 16, Tory 2019 Manifesto
“We promise not to raise the rates of income tax, National Insurance or VAT”, page 15, Tory 2019 Manifesto
“For many families, energy costs are a major source of financial pressure. We will keep our existing energy cap and introduce new measures to lower bills”, page 15, Tory 2019 ManifestoConservative Manifesto, 2019, https://www.conservatives.com/our-plan
- Analysis from the House of Commons Library, commissioned by Labour, shows the estimated income of working pensioners in receipt of the full state pension earning £16,000, £24,900 and £40,000 respectively. It shows:
- A working pensioner on a salary of £16,000 faces a real-terms reduction of £1,790 over the next two years.
- A working pensioner on the average salary for someone aged over 60 of £24,900 faces a real-terms reduction of £2,300 over the next two years.
- A working pensioner on a salary of £40,000 faces a real-terms reduction of £3,200 over the next two years.
Table 1
| Estimated income from earnings and state pension | |||||||
| England: Individual in receipt of full state pension and earning £16,000 per year in 2021/22 | |||||||
| Cash prices | Real terms 2021/22 prices (based on CPI inflation of 8.0% in 2022/23 and 2.4% in 2023/24) | ||||||
| 2021/22 | 2022/23 | 2023/24 | 2022/23 | 2023/24 | |||
| Gross earnings | £16,000 | £16,752 | £17,204 | £15,511 | £15,556 | ||
| State pension | £9,360 | £9,648 | £10,212 | £8,933 | £9,234 | ||
| Net earnings (tax and NI deducted) | £13,448 | £13,986 | £14,049 | £12,950 | £12,703 | ||
| Total net income | £22,808 | £23,634 | £24,261 | £21,883 | £21,937 | ||
| Difference to 2021/22 (figures rounded to the nearest £10) | -£920 | -£870 |
Table 2
| Estimated income from earnings and state pension | |||||||
| England: Individual in receipt of full state pension and earning £24,900 per year in 2021/22 | |||||||
| Cash prices | Real terms 2021/22 prices (based on CPI inflation of 8.0% in 2022/23 and 2.4% in 2023/24) | ||||||
| 2021/22 | 2022/23 | 2023/24 | 2022/23 | 2023/24 | |||
| Gross earnings | £24,900 | £26,076 | £26,780 | £24,144 | £24,215 | ||
| State pension | £9,360 | £9,648 | £10,212 | £8,933 | £9,234 | ||
| Net earnings (tax and NI deducted) | £20,562 | £21,445 | £21,590 | £19,856 | £19,522 | ||
| Total net income | £29,922 | £31,093 | £31,802 | £28,790 | £28,756 | ||
| Difference to 2021/22 (figures rounded to the nearest £10) | -£1,130 | -£1,170 |
Table 3
| Estimated income from earnings and state pension | |||||||
| England: Individual in receipt of full state pension and earning £40,000 per year in 2021/22 | |||||||
| Cash prices | Real terms 2021/22 prices (based on CPI inflation of 8.0% in 2022/23 and 2.4% in 2023/24) | ||||||
| 2021/22 | 2022/23 | 2023/24 | 2022/23 | 2023/24 | |||
| Gross earnings | £40,000 | £41,880 | £43,001 | £38,778 | £38,883 | ||
| State pension | £9,360 | £9,648 | £10,212 | £8,933 | £9,234 | ||
| Net earnings (tax and NI deducted) | £32,642 | £34,088 | £34,372 | £31,563 | £31,080 | ||
| Total net income | £42,002 | £43,736 | £44,584 | £40,496 | £40,314 | ||
| Difference to 2021/22 (figures rounded to the nearest £10) | -£1,510 | -£1,690 |
Table 4
| People in Employment aged 66+, Sep 2020 – Sep 2021 | |
| Region (Y) | Total aged 66+ (X) |
| North East | 489,896 |
| North West | 1,279,716 |
| Yorks & Humber | 957,903 |
| East Midlands | 883,049 |
| West Midlands | 1,025,588 |
| East of England | 1,170,185 |
| London | 1,006,421 |
| South East | 1,685,151 |
| South West | 1,176,763 |
| Northern Ireland | 290,742 |
| Scotland | 989,585 |
| Wales | 619,368 |
| Source: House of Commons Library analysis of the Annual Population Survey |
Tony Lloyd MP for Rochdale 