Pensioners up to £800 worse off after one year of Labour, new analysis finds, as charities warn elderly are ‘squeezed in a vice of ever-escalating household bills’
Pensioners are up to £800 worse off after just one year of a Labour government, the Mail can reveal.
Soaring household bills and the removal of the winter fuel payment have twice outstripped this year’s state pension increase, leaving OAPs feeling the pinch.
Last night charities warned that the elderly were being ‘squeezed in a vice of ever-escalating household bills’ – with inflation still soaring.
Exclusive analysis by the Tories for this newspaper found energy bills have risen by £152 for a typical household since July last year, despite Labour pledging to bring them down.
Council tax is set to rise by £109 for the average Band D property this year, while the cost of groceries and takeaways for households has jumped by an average of £210 a year.
Changes to winter fuel payments cost millions of pensioners on average £125, though Labour has vowed to reinstate the benefit for the majority by this winter.
Water bills have also risen by an average of £123 per year, while phone bills are up £46, broadband by £36, and car tax up £5 for the standard rate, the analysis found.
In total, the figures suggested the average pensioner household is £806 worse off this financial year than last. At the same time, the basic state pension increased by just £361.40.
Shadow chancellor Mel Stride told the Mail: ‘Labour’s cost-of-living crisis is hitting pensioners hard’
Charities warned that April’s state pension increase had been ‘dwarfed’ by bill hikes
Energy bills have risen by £152 for a typical household since July last year – adding to pensioners’ woes
But the Government said the figures were ‘speculative’ and did not consider other benefits such as the Warm Homes Discount, which provides rebates to low-income households.
Conservative shadow chancellor Mel Stride told the Mail: ‘Labour’s cost-of-living crisis is hitting pensioners hard.
‘In just one year, pensioners have been left £806 worse off – paying more for energy, water, council tax, and even their phone and broadband bills.
‘And millions also had to get through the winter with less support after Labour took away their Winter Fuel Payments.
‘After a lifetime of work, our pensioners deserve security in retirement. But Labour’s choices are leaving them behind.’
Dennis Reed, director of Silver Voices, said the analysis showed April’s state pension increase had been ‘dwarfed’ by bill hikes.
He told the Mail: ‘When the anti-pensioner brigade attacked the 4.1per cent Triple Lock rise in April, we warned that the increase would be more than eaten up by the series of price hikes that month.
‘These statistics reveal a situation much worse than that, with price rises more than double the state pension increases for most pensioners.’
Figures published last month showed UK inflation rose to a near 18-month high in June as food prices surged for the third month running.
The Office for National Statistics (ONS) said Consumer Prices Index inflation rose to 3.6per cent in June, up from 3.4per cent in May and the highest since January 2024.
Caroline Abrahams, Age UK charity director, said the triple lock is ‘so important’ while bills are soaring.
She said: ‘Everyone on a low fixed income will have felt the impact of rising costs over the last year, including older people whose main or only source of funds is the State Pension.
‘Sustaining a decent quality of life in this situation is really hard and this is why the triple lock is so important: without it, in combination with the Government’s decision to restore Winter Fuel Payment for most pensioners, significant numbers would have found themselves in dire financial straits.’
A Government spokeswoman said: ‘These figures are speculative and do not take into account other benefits such as the Warm Homes Discount, keeping prescription charges low and capping bus fares.
‘Thanks to our commitment to the Triple Lock, millions of pensioners will see their State Pension rise by £1,900 and following our biggest ever campaign to boost Pension Credit take-up, nearly 60,000 extra pensioners are receiving financial support worth up to £4,300 a year.
‘On top of this, nine million pensioners will receive a Winter Fuel Payment this year to support them during the colder months.’
Pensioners could be even worse off next year if they become liable to pay tax on their state pension.
The personal allowance – the level at which income becomes taxable – is stuck at £12,570 at least until 2028, with ministers refusing to rule out extending the freeze further.
Higher-than-expected wage growth means the state pension is on track to breach the threshold next year if average earnings continue to grow at their current rate.
Under the triple-lock system, the state pension increases by the rate of inflation, annual earnings growth or 2.5 per cent – whichever is the highest.
