Dear Christopher,
Thank you for your email and for sharing the Organise Members’ Pensioner Manifesto, which I have read with interest.
I am sorry to read that you were disappointed by the measures announced in the Spring Budget. However, if we are to be fiscally responsible, the only way we can fund crucial policies such as the Triple Lock is through a growing economy, which the Budget delivers through the cuts to National Insurance Contributions. The OBR say that the net impact of recent fiscal events (including the NI cuts) is to get the equivalent of 250k more people into work and increase growth by 0.7% of GDP. The latest figures also show that because of our clear and steady plan, the economy has grown by a further 0.6% in the first quarter of 2024 – which is brilliant news.
While Conservatives would like to further decrease the tax burden, unfortunately, raising taxable income thresholds is considered by the OBR to be inflationary and I firmly believe we must not risk losing the good progress we have made on tackling this issue. Thanks to action taken by this Conservative Government – such as holding down energy bills and taking responsible decisions with the public finances – inflation has more than halved from its peak of 10.7 per cent in November 2022 to 3.2 per cent in March 2024.
However, this Government’s commitment to support pensioners remains unwavering. To that end, I would like to take the time to outline the actions we that have already taken to give pensioners the dignity they deserve after working their entire lives.
As you will be aware, when I was the Pensions Minister, I oversaw the State Pension rising by its largest ever amount, increasing by 10.1 percent. The full yearly amount of the basic State Pension is now over £3,700 higher, in cash terms, than in 2010. That’s £790 more than if it had been uprated by prices, and £945 more than if it had been uprated by earnings (since 2010).
This benefit is all thanks to the Triple Lock, a measure that the Conservatives introduced in 2011 and have rightly protected at every Budget since. Because of the Triple Lock, the State Pension was uprated by 8.5% in April 2024, in line with average yearly earnings growth, meaning that pensioners will receive a further £900 more a year, fulfilling our promise to provide dignity in retirement.
Additionally, I am very pleased that last winter, we delivered nearly 12 million Winter Fuel Payments and Pensioner Cost of Living Payments to pensioners, helping to protect the most vulnerable during a difficult time for the wider economy. In total, this means around £4.8 billion has been made available, providing the average household with up to £600 of support to help with their energy bills.
We have also abolished the Pensioners Lifetime Tax Allowance, protecting over 80% of NHS doctors from receiving a tax charge on their pension and incentivising them to stay in or return to the workforce.
More widely, I want to assure you that pension reform remains at the heart of our plan, and we have already delivered wide-ranging changes that will see a typical pension boosted by a further £1000 a year. Following this, the Chancellor's 'Mansion House Reforms' have reformed defined contribution pension schemes, resulting in an increase in a typical pension pot by 12% over the course of a career.
I acknowledge that there is more work to be done but I want to assure you that these measures are having their desired effect. Since 2010, there are 200,000 fewer pensioners living in absolute poverty due to our strong action to protect the most vulnerable in society.
Once again, thank you for taking the time to write to me and I will ensure that I feed the Pensioners Manifesto and your comments into my discussions with my ministerial colleagues on this issue.
With best wishes,
Laura
MEMBER OF PARLIAMENT FOR SEVENOAKS AND SWANLEY
Website:
https://www.lauratrott.org.uk/
Telephone: 020 7219 6898