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Rishi Sunak, Chancellor of the UK, is facing phone calls to reconsider his decision to suspend last year. “Lock triple” on an increase in the state’s annual pension, which adds to the pressure on the government for a significant increase in living standards.
Two former pension ministers have urged the government to provide assistance to those at risk, as they do struggle with endurance and rising electricity bills and inflation which is expected to rise by more than 6 percent.
Conservatives officials acknowledge that the issue is growing for Tory MPs. “It’s just the beginning,” said one. “Some people want the three locks restored.” Ministers say they are preparing for a crisis in parliament.
Tory MPs are already urging Sunak to take action to reduce living standards, including reducing VAT on electricity prices, stopping “green money” on oil prices or eliminating tax increases in April.
Since 2011, people have received the security of their state pensions under three locks, which guarantees an annual increase based on inflation, income growth, or 2.5 percent, whichever is higher. The Conservatives have pledged to run for office in the 2019 general election.
Under three locks, the state pension would have risen in April by 8 percent, due to Covid’s problem with wage growth, exceeding Goldman Sachs’ expectations of 6.8 percent a year that month.
Koma Sunak, under pressure to earn money, has suspended the payroll rate three times a year; instead the state pension is up 3.1 percent in April, in line with inflation in September 2021.
Sir Steve Webb, Liberal Democrat pension minister from 2010-2015, said the government should reconsider its three-time suspension, which benefits retirees 12m – most of them Tory voters.
“The government should acknowledge that the 3.1 percent increase does not meet its target of protecting retirees from spending extra money and considering the April rise,” said Webb, who is now a partner with LCP, a research company. counselors.
“Electricity issues in particular make up a significant portion of the elderly’s income and it will be very difficult for them to afford this without having to cut down on heat or use other resources.”
Baroness Ros Altmann, Conservative pension minister in 2015-2016, this week called on the government to take immediate action to reduce inflation pressure on the poorest, warning that without the help of the elderly or dying in the winter this could rise sharply. .
“The government’s response should include urgent plans to increase Pension Credit to take over and help retirees to heat their homes with lower prices or additional benefits,” he said.
The government states: “We recognize the high cost of living and want to ensure that retirees receive all the care they deserve. We continue to encourage those who are eligible to receive Pension Credit, as well as a number of other benefits they can offer, to say so. ”
A spokesman said the cost of electricity, fuel bills in the winter and £ 500m in family support could help low-income families in the winter.
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