The Labour tax raids rendering the pension triple lock worthless

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Depleted by soaring council tax bills and lost winter fuel payments, Telegraph analysis reveals.

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The statistics have plunged the Government into another controversy over broken promises, as Sir Keir Starmer stated in a September interview that pensioners would be "better off year-on-year" under Labour.

The Telegraph examined each local authority area in England to determine the increase in council tax bills and the average amount of winter fuel payments made to pensioners last year.

We then compared this to the state pension increase of £472 to determine where pensioners are least likely to feel the benefit of it.

Our research indicates that pensioners in Bradford, where the council tax is rising by 9.99%, will see the largest proportion of their increase cancelled out. They are followed by those in Birmingham, Somerset, Trafford, and Windsor and Maidenhead.

Homeowners in Bradford with a Band D property will have to pay an additional £170 this year. In the 2023/24 period, the typical winter fuel allowance issued by the council to pensioners totalled £230.

In total, it means retirees not getting pension credit, and so not eligible for the winter fuel payment, will lose £401. This leaves them with just £71 of the initial £472 state pension increase.

For those in Birmingham, 78% of the increase will be swallowed up by the additional £134 added to council tax bills and the loss of the average £233 allowance.

Residents in Somerset and Trafford will see a decrease of 77% and 75.1% respectively.

All three local authorities have been given permission to increase residents' council tax bills by roughly 7.5% from April.

For pensioners in Windsor and Maidenhead, where council tax is rising by 8.99pc, and the average winter fuel payment is £235, 74.7pc of the increase in state pension will be swallowed up.

By contrast, those in Wandsworth will suffer the smallest impact, with just 54.2pc of the increase being taken straight away. Wandsworth is the London borough with the lowest council tax in the country.

The triple lock was brought in back in 2010 and guarantees that the state pension increases annually in line with either inflation, wage growth or 2.5%. This year's rise is in line with the 4.1% wage growth.

Retirees will receive £230.25 a week from April, an increase from the current £221.20. Those on the full state pension will receive £176.45, up from £169.50.

The formula is designed to safeguard pensioners from factors such as increasing supermarket prices and skyrocketing energy costs. For instance, the energy price cap increased by 1.2pc this quarter, adding £21 to the average annual household bill of £1,738.

However, massive council tax increases and the loss of the winter fuel payment have worsened pensioners' hardships, leaving them with limited means to cope with other financial burdens.

Dennis Reed, of the campaigning group Silver Voices, said to The Telegraph: "The triple lock increase due in April did not consider the loss of the winter fuel payment for the majority of older people, nor did it anticipate this significant rise in council tax across the country."

“Older people with fixed incomes are facing a harsh double blow, which is severely reducing their standard of living to the point where they are struggling to make ends meet.”

He added: “The Telegraph's research proves the myth that older people will be financially better off under Labour this year.”

Tory MP Kevin Hollinrake said: "First Labour took away the winter fuel allowance and is forcing councils to increase council tax to pay for Labour's new jobs tax, despite Starmer promising 'not a penny more' during the election.

“Labour's stance on pensioners has been laid out in recent months - they'd rather leave them to struggle so they can negotiate pay rises for union leaders and give billions to foreign countries.”

Local authorities with responsibility for adult social care are only allowed to increase council tax by no more than 4.99% without holding a referendum. For those without this responsibility, the maximum increase is 2.99%.

However, this year, six councils have been given permission by the Government to raise council tax beyond the 4.99% cap. This decision was made despite Labour's promise to freeze council tax during the election campaign.

And residents’ final council tax bills are set to be even higher due to additional charges for police and fire services.

These annual price increases are not limited, making it more difficult to forecast them.

Elliot Keck, of the TaxPayers' Alliance, stated: "Pension increases will be rendered meaningless if they're taken away by steep council tax rises. Labour made a lot of fuss about supporting the elderly, but their actions suggest the opposite."

People who have worked tirelessly all their lives should not be cheated out of what they deserve.

The Local Government Association was approached for a statement.

A government spokesperson stated: "Millions of pensioners will see their state pension increase by up to £1,900 throughout this parliamentary term as a result of our commitment to the triple lock, and financial assistance is available to help pensioners on low incomes with their council tax payments.

We have adopted a more stringent approach to council tax increases than the previous administration, only permitting a limited number of rises for those in severe financial distress, and we anticipate that taxpayers in these areas will still pay below the average compared to similar councils.

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