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.
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