Saturday, 20 June 2020

CONSERVATIVES TO MAKE STATE PENSIONERS PAY FOR COVID AND BREXIT


Tory spin on pension figures is the rebirth of ‘Blame Game Austerity’

According to Government figures not adjusted for Covid 19 deaths there are 11,930,000 people of State Pension Age. 6,487,000 Women and 5,443,000 men in 2020.

The Tory spin doctors are attempting to inform the Working Age population of the UK that state pensioners receive £175.20 per week. This level of payment is only received by ‘New Pensioners’ who reached their state pension age this year, who in the main are women who have waited an additional 6 years to receive their pension. 

Most pensioners, approximately 11M receive less and for many older pensions much less.
The average state pension payment in the UK is £134.00 per week.
The Chancellor of the exchequer wants to freeze the increase in pensions (known as the Triple Lock formula) for two years or more in order to pay for his Governments incurred costs in handling the Covid 19 pandemic.

The triple lock ensures the state pension increases each year in line with the rate of inflation, average earnings growth or 2.5 per cent – whichever is higher.
State Pensions rose by 3.9% in mid 2020 due to the Governments poor handling of wage inflation factors last year.

The Government is preparing to let the economy go into free fall after it achieves its goal of a no-deal Brexit which is looking more likely as each month passes.

The Office of Budget Responsibility has released figures showing that state pensions will rise by 2.5% in 2021 and may rise by 18.3% in 2022. If the Government does not control wage inflation.

The Chancellor seems to be planning to use wage inflation for those remaining in work after Brexit to support growth in the service sector that will be suffering stagnation and massively high levels of unemployment by 2022.

The Office of Budget Responsibility spin doctors are using the top rate state pension for brand new pensioners as the base calculator for all pensioners and the Chancellor has followed suit, his news spin includes pensions will rise by £37.20 per week costing the nation an additional £34Bn by 2020.

Based on the actual average state pension and the actions of quantitative easing by the Bank of England yesterday who in true Keynesian style released £100Bn of ‘new money’ into the economy to negate the effects of inflation caused through Covid 19 and smooth a no-deal Brexit the cost to the nation ensuring economic free fall is avoided.

Real state pensions growth to protect the elderly through the triple lock would be 2.5% in 2021 a rise in the average payment of £3.35 and a 3.4% rise in 2022 of £4.66 would take the base average up to £142.02.

2022 begins the waning years of the baby boom with less people becoming state pensioners and with the average death rates in poorer areas going into a period of growth through more elderly people (700,000 predicted) falling into energy poverty then the new average, taking the rise for new pensioners into consideration should sit around £146.20 as new pensioners will receive £185.54 no where near the £212.45 being spun out by Government.

Taking the fall in numbers into consideration and the backwatching from the Bank of England the real rise will be in line with the OBR’s growth figures of £4Bn.

The treasury needs to ensure state pensioners are not left behind in the scramble for cash after Brexit and the Chancellor needs to concentrate on resolving wage and energy price inflation and not attack those who’s sweat and toil have given this nation the wealth it has.


https://www.youtube.com/watch?reload=9&v=kukKpqd_B2c





 

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