Benefits changes will hit Pensioners and those of Low Incomes

Local MP Jonathan Edwards and AM Rhodri Glyn Thomas have expressed deep concerns after a vote confirmed that the UK Government will in future use the Consumer Price Index (CPI) rather than the Retail Price Index (RPI) to determine annual up-ratings of benefits and tax credits, second state pension and public sector pensions.

RPI, which includes housing costs, is usually higher than CPI. The changes will now mean that pensioners and those on benefits in particular will lose out.

This move comes in spite of pre-election promises that there would be no change to the uprating system.

Mr Edwards and Mr. Thomas also slammed those Labour MPs who failed to vote despite speaking out against the changes.

Jonathan Edwards said:

“It is the most vulnerable in society such as Pensioners and those on benefits who will lose out as a result of the Westminster government steamrolling their ideological cuts through.

“Why should pensioners who have worked all of their lives, and those on benefits such as Disability or Employment Support Allowance, have to suffer because of the banker’s greed and the mistakes of the previous Labour government?

“Last year Plaid made an election pledge to introduce a proper living pension, set at the level of the current pension credit. This is 30% more than the current basic state pension for single people.

“Once again Labour MPs didn’t turn up to vote and as a consequence the Tories and Lib Dem cuts were allowed to sail through. It is a total disgrace”.

Constituency Colleague Rhodri Glyn Thomas added:

“How many times are we going to see Labour MPs shout from the rooftops against the Westminster government cuts, but fail to show up and take any action against them?

“Last week 25 out of twenty six Labour MPs in Wales were a no-show on a Fuel Duty Stabiliser. This week 24 out of twenty six were a no-show on protecting the most vulnerable.

“Labour MPs should be ashamed of themselves”.

One Response to “Benefits changes will hit Pensioners and those of Low Incomes” [latest first]

  1. Hi Jonathan,
    I was just looking at this new bill going through Parliament (WELFARE REFORM BILL) and looked at the notes that acompany it and found this.


    145. Paragraph 64 amends the State Pension Credit Act 2002 so that a member of a couple who has attained the qualifying age for state pension credit may not receive state pension credit if the other member of the couple has not attained that qualifying age. This is to ensure that all claimants who have not attained the qualifying age for state pension credit are required to claim universal credit and, if appropriate, be subject to work-related conditions of entitlement.

    And in the bill itself,

    State Pension Credit Act 2002 (c. 16)

    Paragraph 64 In section 4 of the State Pension Credit Act 2002 (exclusions), after subsection
    (1) there is inserted—

    “(1A) A claimant is not entitled to state pension credit if he is a member of a couple the other member of which has not attained the qualifying

    This will impact a lot of people on Pension Credit.


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