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State pension increase

woodbine
woodbine Community Co-Production Group Posts: 5,251 Disability Gamechanger
Whilst the triple lock has been abandoned for next year the Bank of England is forecasting inflation will be 4% which is what SRP will increase by, the biggest increase in a decade (source Daily Mail )

That will mean an increase of around £7 a week on the post 2016 unified pension.
Offering PIP advice to people with epilepsy.

Comments

  • Teddybear12
    Teddybear12 Member Posts: 752 Pioneering
    edited October 1
    @woodbine £7 a week will not go very far with all the increases in living going on at the moment. People who only have a State Pension will find it very hard. Do not forget the £10 Christmas bonus they will also get. It was first introduced in 1972 worth a lot more then than now. Do people on other benefits get the £10 Christmas bonus ?
  • leeCal
    leeCal Member Posts: 4,215 Disability Gamechanger
    There’s also the winter fuel payment which will be sorely needed this year more than ever.
  • mikehughescq
    mikehughescq Member Posts: 7,431 Disability Gamechanger
    Can’t say I’ll be putting out the bunting. SRP is currently worth 11% less than it was worth in real terms in 1979. So, £7. Whoop de do.
  • woodbine
    woodbine Community Co-Production Group Posts: 5,251 Disability Gamechanger
    £7 a week should be in line with inflation at 4%.
    Offering PIP advice to people with epilepsy.
  • mikehughescq
    mikehughescq Member Posts: 7,431 Disability Gamechanger
    That would be a “prediction” of 4%. Not actual inflation of 4%. That would be double the Bank of England target and that would be the same bank which completely failed to anticipate a rise from 2% to 3.2% in a month and whose own reporting recently noted that its inflation forecasting has been getting worse by the month and who have been actively criticised and challenged by other banking institutions as their forecasts have recently been as much as 150% out. 

    As per my earlier post, it’s worth 11% less than in 1979 even after this rise and the non Bank of England predictions which have proved so much more accurate in recent months suggest that by the time the rise is implemented it could be worth about £2. If one takes into account the imminent rise in fuel prices then it will be worth approximately a £15 reduction. 

    So, again, whoop de do.
  • woodbine
    woodbine Community Co-Production Group Posts: 5,251 Disability Gamechanger
    The new SRP could end up being £187 per week, for a couple thats £374 per week, fuel prices will be going up around £3 per week, and they get the winter fuel payment of £100-£300 a year.
    Pensioners get a far better deal than almost everybody who lives on in work benefits.
    Offering PIP advice to people with epilepsy.
  • Teddybear12
    Teddybear12 Member Posts: 752 Pioneering
    edited October 2
    A lot of women have not got enough NI contributions to get that kind of pension so the increase would be much less. I have never thought of Pensions as a benefit. I worked all my life other than when I had five years off to take care of my daughter and paid a lot of tax and still do. I get the impression you think Pensioners get to much please correct me if I am wrong. 
  • mikehughescq
    mikehughescq Member Posts: 7,431 Disability Gamechanger
    edited October 2
    No, they do not. They are, at least until now, less vulnerable to fluctuations compared to those who work but they are also the largest single group of benefit under claimers in the UK are pensioners. Around 1/3 continue to fail to claim their entitlements. 

    The WFP has been frozen for a decade now and is estimated to cover around 75% of the coming fuel increases at best. How will the rest be covered? Well it won’t be from SRP thats for sure. Pensioners are accepted as being most at risk from fuel poverty and the adequacy of current provision is absolutely reflected in the fact that £229 million was put into extra support via the DWP winter warmth scheme and similar last winter. That’s before we consider that in most areas that money was completely exhausted and had to be supplemented by local schemes and local emergency assistance. 

    You will find zero statistics to support your assertion @woodbine.

    I despair of the whole “I get by so I don’t see why other people don’t/can’t” mentality.
  • woodbine
    woodbine Community Co-Production Group Posts: 5,251 Disability Gamechanger
    I'm fast approaching SRP age myself, however I maintain that under the present and recent tory govts. pensioners have had a far better deal than any of group of "benefit" recipients, with (the exception of 2022) the triple lock, whereas most other benefits have been frozen or had minimum increases for years now.
    I don't have any mentality of the kind you seem to suggest I have Mike.
    What I do know is that when I do get my SRP it will be significantly more than the benefit I get now, in fact it's forecast to be around £100 a week more than my ESA.
    Offering PIP advice to people with epilepsy.
  • mikehughescq
    mikehughescq Member Posts: 7,431 Disability Gamechanger
    This is one of those times on a forum where it’s hard to even know where to start to correct such a fundamentally wrong statement. 

    Yes other benefits have been frozen. Yes there is the benefit cap and sanctions but then, as already observed, SRP has been cut in real terms since 1979. Pension Credit has been stalled to ensure that even those reduced SRPs allow less people to claim PC. That in turn would have made more people eligible for Saving Credit so 5 years ago eligibility for that was killed and then, to finish off, the rules for mixed aged couple mean that many of those who would have been amongst the group who could have claimed PC now have no choice but to claim UC at an average loss of £7,280 per year. 

    All of the above needs to be put in the context that even before all the above PC was the single most underclaimed benefit in our benefits system and that remains the case today. Take-up is unsurprisingly falling but that is not because of generous pensions.

    A quick trawl of t’ internet will find a billion articles claiming pensioners have seen huge rises in income over the decades; caught up with earnings etc. but read the small print and a very different story emerges. Not least because almost all of those stats are after housing costs. 

    • 1 in 7 pensioners (1.6 million or 14% of pensioners in the UK) live in poverty, defined as having incomes of less than 60% of median income after housing costs.
    • A further 1.2 million pensioners have incomes just above the poverty line (more than 60% but less than 70% of median income).
    • Women are more likely to be in poverty than men, and older pensioners (especially those aged 85+), single people living alone, private tenants and Asian pensioners are at particular risk.

    The terms of the triple lock also mean that it is only in years when both inflation and pay rises are low that pensioners really make any ground on the rest of society. Again it needs to be borne in mind that it was only introduced to try and bring pensions back to a sensible level after years of falling behind earnings. At present it is 28% short of where it was estimated to be by last year. 

    Doubt you’ll find many/any pensioners on this forum feeling better off than anyone. 

    I tend to stay on the shy side in talking about my specific work role but this is one of those few areas where I can reel of the stats without even looking them up. I have always avoided talking about the specifics of my role for lots of reasons but let’s on this occasion just say that I managed a team of staff dedicated to nothing but claims for older people for around a decade and my role has the words “take-up” in the title. Other people may beg to differ but one of my areas of absolute expertise is benefits take-up and poverty for older people. I’m not going to give anyone an easy time on such slack assertions. 

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