More than 100,000 pensioners across Cambridgeshire will receive at least an extra £790 a year by the end of the next Parliament under Lib Dem plans to write pension guarantees into law.
The news that the state pension will be worth at least £131 a week by 2020 – up from just £97.65 four years ago – under Lib Dem manifesto plans, has been welcomed by Cambridge MP, Julian Huppert.
He said: “We saw the value of the state pension decline for decades under successive Labour and Conservative governments. This left pensioners across the country struggling to make ends meet while prices increased and pensions failed to keep pace with earnings. This is not acceptable – people who have worked all their lives being left to struggle when they retire.
“Our manifesto promise, which we have delivered in government, to increase pensions every year by either inflation, wage increases, or 2.5 per cent, whichever is the highest, means that the state pension is already a higher share of the national average wage than at any time since the early 1990s. But we need to go further and write this guarantee in law so successive governments must continue to implement it.”
The state pension is £440 higher per year in 2014-15 that if it had increased in line with earnings from the start of this Parliament and £800 a year in total. In Cambridgeshire 100,229 pensioners who receive the full state pension would get at least £6,800 in 2020. But based on current assumptions, it is likely to be even higher, at £139.95 per week or £7,277 per year.
The Liberal Democrat plans are in stark contrast to the Labour years, which on one occasion saw Gordon Brown increase the state pension by just 75p a week.