Words used in 2022 have been used to say that Starmer "flip flopped" on a direct promise apparently made recently, when he did not, and the accusation has been made on spurious grounds.
Just to correct slightly what you said there Wyllow. See my post on page 10. This provides a link to the original whole interview that Starmer did for Good Housekeeping magazine that the clip comes from. The interview was in April 2024 but Starmer’s remarks about pensioners related to the economic situation in 2022 when the price of food and energy was rocketing. He talks about the economy being out of contol then and the need to stabilise prices - which is now happening.
It’s worth pointing out that the question that prompted the response was from a pensioner to Good Housekeeping saying that though state pension had gone up by 8.5% from April 2024, when the pension is low in the first place, 8.5% doesn’t amount to much - which prompted his anecdote from 2022 about the need to stabilise prices.
Thinking about it there was no need to hark back to 2022. That turbulent period has passed. A better answer would have been to discuss the relative value of the UK pension where we lag behind most other European countries but that's dangerous fiscal territory and this was local election time with a general election anticipated (albeit not yet announced). Easier to criticise the opposition - unfairly I think as they did a lot to help people during that crisis.
Inflation was at 11.1% in October 2022. It is now down to 2%. In the interview Starmer said the Labour Party is committed to the triple lock. Bookmark that.
Average earnings growth April-June 2024 was 5.4%. We shall see what effect that has on inflation in the longer term and we need to see the September 2024 numbers that the next triple lock will be based on, but factor in recent pay settlements and it’s looking like the pension increase in April 2025 could be higher than inflation.
Say the next triple lock does turn out to be based on 5.4%. That would give someone in receipt of basic state pension an extra £9.15 a week from April 2025 or £475 a year - as opposed to £4.75 a week or £220 a year if triple lock is only 2.5% - which is the minimum it can be even if inflation is below that. For basic rate taxpayers, that’s a net post-tax difference of £204 - the amount of WFP that is being withdrawn if you are under 80. If you don’t pay tax it’s a difference of £255.
At the time Reeves made her announcement about WFP, she may have taken this into account.
Most energy companies now operate a fixed direct debit system based on a rolling twelve month estimate of customers’ energy costs. In other words, we pay a bit more in the summer months to cover our extra winter costs. Energy companies now do our budgeting for us which, to my recollection, wasn’t what was happening 25 years ago when the WPF was introduced.
In a nutshell. what I’m saying is that if you budget on a weekly basis, an above inflation rise in pension should compensate for the loss of WFP - an argument towards withdrawing it next rather than this year so people can budget.