The Liberal Democrats are launching an offer this week to ensure retirees are not crippled by financial hardship next year. The UK’s current cost-of-living crisis is expected to wipe out the expected increase in pension payments altogether.
This represents an increase of £ 4.25 per week for the basic state pension, or an increase of £ 5.55 for the new state pension.
However, new research from the House of Commons library commissioned by the Liberal Democrats warns that inflation will double in April.
At the same time, the rising cost of gas means the energy cap rose by £ 139 at the start of this month and could rise by another £ 300 next spring.
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Meanwhile, the New State Pension would be reduced by £ 5.25 per week, or £ 273 per year.
Liberal Democrat Work and Pensions spokesperson Wendy Chamberlain said: “The Conservatives have broken their clear promise to protect the state pension and are failing to tackle the cost of pension crisis. life.
“This is a double blow to retirees, who stand to lose hundreds of pounds as their pension payments fail to keep up with soaring bills.
“The Liberal Democrats are demanding a fair increase in the state pension to match the rising cost of living instead of leaving retirees out in the cold.
“We know that retirees are generally more vulnerable to rising energy bills as they tend to spend more time at home, especially during the winter months.
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Under legislation first introduced by the coalition government, pensions are expected to increase annually by the highest level of inflation, average salary or 2.5%.
However, ministers said it was necessary to suspend the mechanism for 2022-2023 because the pandemic had led to a “statistical anomaly”.
Average incomes are expected to increase by up to 9% as millions return to work after being supported by the leave scheme.
Ministers promised that the original method used to calculate state pension increases would come back next year.
The Conservatives pledged to respect the triple lockdown in their manifesto for the 2019 general election.
The Ministry of Work and Pensions has been contacted for comment.