Pensioners suffering from Cost of Living Crisis.

Whilst the Prime Minister jets around the world looking for and visiting those areas where he has a shred of popularity, the cost of living crisis continues. Most voters feel public services are failing and the British state is not working for them. One group which is already suffering heavily are pensioners.

A recent report from Which? has highlighted that pensioners spend a greater proportion of their income on essentials such as energy which are rapidly rising. The situation will get worse as inflation goes over 10%. Which? found that 41% of pensioners were turning the heating down or off in a bid to save money. 37% had cut back on spending. The biggest concerns were the cost of energy (82% of pensioners), food and drinks (64%) and fuel (61%). Whilst many pensioners In the past did not have to worry too much about the monthly outgoings, this is no longer the case.

So why the problem? Research from the Institute for Fiscal Studies suggest spending per person remains relatively constant through retirement increasing slightly up to age 80 before flattening or falling afterwards contrary to previous assumptions. In May the government announced some measures to help with the cost of living including a £400 grant to all households to combat fuel price increases in October. They also targeted benefits such as the one off £300 grant in the autumn for pensioners who currently receive Winter Fuel Payments. But this will not go far enough.

The underlying issue is extremely high inflation which particularly hits pensioners. They typically spend more of their money on average on essential goods and services, many of which are starting to cost a lot more now. Pensioner income is often fixed or lags behind the inflation rate. Pensions are not keeping pace with inflation and the government has removed the triple lock. Pensioners' savings and incomes will be badly eroded. Whilst wages are attempting to keep up with inflation, pensioners do not have this option.

What does the absent Prime Minister need to do? Inflation increases the tax take. The government needs to re-introduce the pension triple lock now to keep pensions up with inflation and it needs to give more targeted assistance for fuel bills. This is not rocket science.