Commons Sense

House of Commons · Ministers' Questions

Inflation: Pensioner Living Standards

Monday 16 December 2024 · 6 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 2 Partly answered 4 Not answered 0

Key points

  • The Chancellor launched a landmark pensions review in July to boost returns for future pensioners and increase investment in the UK economy.
  • Due to the Government's commitment to the triple lock, pensioners will see a 4.1% above-inflation increase in their state pension next year.
  • The Government will not reconsider the decision to means-test pension credit due to a 22 billion fiscal deficit inherited from the previous government.

Topics (select to filter)

Questions & Answers

Q1 Susan Murray Lib Dem Mid Dunbartonshire
Economy Benefits & Welfare
Context

The question arises from the concern over rising inflation and its impact on pensioners' living expenses, specifically in Mid Dunbartonshire where nearly a quarter of constituents are of pension age. Pensioners who have invested in private schemes face challenges as inflation outstrips their modest yearly increase, eroding the value of their lifetime savings.

Question

I am concerned about the potential impact of trends in inflation on pensioners' living standards, especially for those with private pensions whose financial planning is being undermined by high inflation. What steps will you take to prevent the erosion in value of private pensions and mitigate the problem of investment growth not being passed on to pension holders?

Answer from Emma Reynolds

The Chancellor launched a landmark pensions review in July, which is being led by me. The review aims to boost returns for future pensioners so they get better returns similar to those seen in Australia and Canada, and also to increase investment in the UK economy.

Partly answered

Not addressed: The specific steps to prevent erosion of private pensions' value due to inflation were not addressed

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Q1 Susan Murray Lib Dem Mid Dunbartonshire
Economy Benefits & Welfare
Context

The question arises from the concern over rising inflation and its impact on pensioners' living expenses, specifically in Mid Dunbartonshire where nearly a quarter of constituents are of pension age. Pensioners who have invested in private schemes face challenges as inflation outstrips their modest yearly increase, eroding the value of their lifetime savings.

Question

I am concerned about the potential impact of trends in inflation on pensioners' living standards, especially for those with private pensions whose financial planning is being undermined by high inflation. What steps will you take to prevent the erosion in value of private pensions and mitigate the problem of investment growth not being passed on to pension holders?

Answer from Emma Reynolds

The Chancellor launched a landmark pensions review in July, which is being led by me. The review aims to boost returns for future pensioners so they get better returns similar to those seen in Australia and Canada, and also to increase investment in the UK economy.

Partly answered

Not addressed: The specific steps to prevent erosion of private pensions' value due to inflation were not addressed

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Q2 Susan Murray Lib Dem Mid Dunbartonshire
Economy Benefits & Welfare
Context

The question arises from the need to understand the government's stance and measures regarding the impact of high inflation on pensioners' income and living standards, particularly for those relying on state pensions.

Question

What assessment has been made of the potential impact of trends in inflation on pensioners' living standards? This is especially relevant given that many have saved their hard-earned money into private schemes but now face the reality of inflation outstripping their modest yearly increase, thereby eroding the value of their savings.

Answer from Emma Reynolds

Due to the Government's steadfast commitment to the triple lock, pensioners will see an above-inflation increase of 4.1% in their state pension next year, which means that they will be up to £470 better off—and, over the course of this Parliament, over £1,900 better off.

Answered
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Q2 Susan Murray Lib Dem Mid Dunbartonshire
Economy Benefits & Welfare
Context

The question arises from the need to understand the government's stance and measures regarding the impact of high inflation on pensioners' income and living standards, particularly for those relying on state pensions.

Question

What assessment has been made of the potential impact of trends in inflation on pensioners' living standards? This is especially relevant given that many have saved their hard-earned money into private schemes but now face the reality of inflation outstripping their modest yearly increase, thereby eroding the value of their savings.

Answer from Emma Reynolds

Due to the Government's steadfast commitment to the triple lock, pensioners will see an above-inflation increase of 4.1% in their state pension next year, which means that they will be up to £470 better off—and, over the course of this Parliament, over £1,900 better off.

Answered
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Q3 Neil Duncan-Jordan Lab Poole
Benefits & Welfare
Context

The concern is about the poorest pensioners who are eligible for but do not claim pension credit, missing out on essential support. The question addresses means-testing and its effectiveness in reaching those truly in need, specifically noting that many miss out on passported support by being a few pounds above the threshold.

Question

The poorest pensioners in our society are those who are eligible for pension credit but do not claim it, and those who are just a few pounds above the threshold and miss out on passported support. Given that means-testing is inherently limited, will the Minister reconsider the recent decision to means-test the winter fuel allowance?

Answer from Emma Reynolds

We will not reconsider that decision due to the £22 billion fiscal deficit inherited from the previous Conservative government, but I remind people they have until Saturday to claim pension credit which can be backdated and passport them to winter fuel payments and other related benefits.

Partly answered

Not addressed: The specific reconsideration of means-testing the winter fuel allowance was not addressed directly

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Q3 Neil Duncan-Jordan Lab Poole
Benefits & Welfare
Context

The concern is about the poorest pensioners who are eligible for but do not claim pension credit, missing out on essential support. The question addresses means-testing and its effectiveness in reaching those truly in need, specifically noting that many miss out on passported support by being a few pounds above the threshold.

Question

The poorest pensioners in our society are those who are eligible for pension credit but do not claim it, and those who are just a few pounds above the threshold and miss out on passported support. Given that means-testing is inherently limited, will the Minister reconsider the recent decision to means-test the winter fuel allowance?

Answer from Emma Reynolds

We will not reconsider that decision due to the £22 billion fiscal deficit inherited from the previous Conservative government, but I remind people they have until Saturday to claim pension credit which can be backdated and passport them to winter fuel payments and other related benefits.

Partly answered

Not addressed: The specific reconsideration of means-testing the winter fuel allowance was not addressed directly

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How accurate was this summary? (1 = poor, 5 = spot on)