Autumn Statement 2023

The Autumn Statement contained little or nothing for millions of older people still struggling to cope with the ongoing cost of living crisis. More recently to pay for pre-election tax cuts the government proposes to allow councils to increase council tax to offset these tax reductions. Council Tax increases tend to hit the lower paid and pensioners more as this represents a larger part of their income.

With the introduction of a punitive scheme to remove benefits from often older and disabled people who have not quite reached retirement age and will still be required to work, threatening disabled people with loss of benefits if they can’t justify their inability to work.

The Triple Lock, which ensures pensioners receive an annual increase of whichever is highest of average earnings, inflation or 2.5%, this time is guaranteeing an 8.5% increase in the state pension next April. Whilst this is welcomed, food prices are rising far more than that 8.5% figure.

Not everyone is just on the new state pension. historically other components are additional pension, graduated pension, increments and protected payments which only get CPI increases this year of 6.7%. The civil service pension will be a CPI increase of 6.7%.

In April 2022 the state pension only rose by just 3.1% in line with inflation but lower than an earnings figure of 8.1%. This temporary suspension is still being felt.

The 2% cut in National Insurance from 12% to 10% does not affect pensioners who don’t pay it. The tax-free personal allowance has been frozen at £12570 until 5 April 2028. Pensioners for the first time could fall into the tax trap reducing any pensions increases further. The UK state pension is one of the lowest in Europe.

In June both major parties said the triple lock would be a manifesto commitment. But both parties have still not given future firm assurances A lot of recent studies show we are living in poorer health, exacerbated by delays and under provision of healthcare and housing concerns plus cost of living increases. There is also a clear north/south divide over longevity despite government intentions to raise the state pension age. The Office of Budget Responsibility has said that UK living standards are forecast to be 3.5% lower in 2024-25 than pre-pandemic.

Rather than investment in public services and increase pensions and benefits which would fuel the economy, they are jeopardising everything simply on the face of it to boost their election chances

ARMs Policy is to campaign for an increase in the state pension in line with National Pensioners Convention policy of 70% of the living wage . ARMs policy is also to campaign for the civil service retirement age to be reduced to 55 and return the state pension age to 60 for both men and women. and for a tax system that ensures the rich and their super profits are taxed for the benefit of society.