‘Do more to help pensioners’

A DECISION not to aid pensioners struggling with the cost-of-living crisis was criticised last night as “genuinely shocking”.

The elderly, like nearly everyone, face soaring energy costs alongside inflation at a 30-year high of 6.2 per cent – but the state pension is only going to rise by 3.1 per cent.

Campaigners slammed Rishi Sunak for not doing more to help older people through an “extremely stressful” few months.

Former pensions minister Sir Steve Webb said: “I am genuinely shocked that the Chancellor has done nothing at all for pensioners, for whom fuel bills make up a large part of their budgets and face hikes in bills with no additional help.”

A 5p cut per litre in fuel duty as petrol prices hit a new high was widely welcomed.

And the Daily Express Green Britain campaign was successful with the removal of five per cent VAT on energy efficiency measures. The Chancellor also announced a cut in the basic rate of income tax from 20 per cent to 19 per cent from April 2024, just in time for the next election. But Jon Greer, head of retirement policy at Quilter wealth management company, said: “Most pensioners probably won’t have already been planning to install solar panels and heat pumps and many older people either don’t drive or only take short journeys, meaning the cut on fuel duty is unlikely to offer a helping hand.

Meagre

“Millions of pensioners who are being hit hard by the cost-of-living crisis awaited the Chancellor’s Spring Statement knowing it will decide whether they can stay afloat.”

Mr Greer warned the over-55s may now look to take advantage of pension freedoms to make ends meet in the absence of any help coming from the Chancellor.

He said: “The Office for Budget Responsibility has significantly increased its estimates of how much people will draw from their pension. It now expects receipts to be up by £1.7billion as people clamour to use their pension savings just to make ends meet.”

Caroline Abrahams, director of charity Age UK, said: “We’re pleased our call to double the value of the Household Support Fund has been heeded. But as that was the only announcement that helps older people on low and modest incomes – unless they are drivers – we don’t think the Chancellor has gone far enough today.

“Older people tell us that every time they go shopping the prices seem to have gone up again, and that’s really tough to manage if you’re reliant on a meagre pension.

“For older people like these, and

younger ones on low incomes too, the next few months threaten to be extremely stressful.”

Steven Cameron, of retirement specialists Aegon, said: “Pensioners received little in the way of good news in this mini-Budget.

“There was nothing new in the way of temporary support specifically for this group, and no improvement on the 3.1 per cent increase in the state pension from next month, which is just half the current rate of inflation. Added to this, those above state pension age don’t pay National Insurance on earnings so won’t benefit from the £3,000 increase in the NI threshold.

“One possible help could have been to offer a bigger increase to the state pension this April in return for a lower rise next April.

“The Chancellor could have raised this year’s increase by 2.5 per cent to 5.6 per cent to bring it closer to the current rate of inflation, then granting 2.5 per cent less than whatever the triple lock rise would have been next April.”

There was also no mention about delivering on a manifesto commitment to increase dementia research funding.

Spiralling

James White, of the Alzheimer’s Society, said: “The Government must deliver on its manifesto commitment to double dementia research spending and provide £70million urgently to clear the severe backlogs in diagnosis.

“Life-changing treatments are within our reach but without the promised funding boost will remain frustratingly out of reach for the hundreds of thousands waiting for a breakthrough.” Verity Kick, of Middletons Mobility company, said: “The cut in fuel duty will only serve as a temporary respite for wealthier drivers and do little to help those on the lowest incomes who may not even own a car.

“Rail fares have risen at a higher rate than fuel costs, and bus fares have risen twice as fast, yet public transport passengers have not been given any help with the cost-ofliving crisis.

“Since 2012, rail fares have risen at a higher rate than fuel costs, yet rail passengers faced a 3.8 per cent increase in fares this month, despite calls for a fare freeze. Bus fares have risen at a far higher rate, 54 per cent in the last decade.

“The elderly and disabled people will bear the brunt of spiralling travel costs, as a third have no access to a car and make three times as many bus journeys as people with the highest incomes.”