One million Scots will be £2,600 worse off after Budget pension changes

Rishi Sunak’s Budget has “betrayed” Scottish pensioners, the SNP has warned – with over 1 million Scots set to be £2,600 worse off on average because of the Chancellor’s decision to scrap the ‘triple lock’ on state pensions.

Analysis from the National Record of Scotland shows that there are currently 1,056,080 people in Scotland over the age of 65 – all of whom are set to lose £520 next year, and a cumulative £2,600 over the next five years.

The UK government's Households Below Average Income (HBAI) statistics revealed UK pension poverty had risen to a 15 year high - with 2.1 million UK pensioners now living in poverty after housing costs, an increase of 200,000 on 2018/19.

Separate analysis from the House of Commons Library, conducted in June, also revealed UK pensions are the least generous in north west Europe by comparison to the average wage. UK pensioners currently receive around a quarter of the average working wage. Pensioners in Luxembourg and Austria receive 90 per cent.

Chancellor of the Exchequer Rishi Sunak holds his ministerial 'Red Box' outside 11 Downing Street, London, before delivering his Budget to the House of Commons.

The Chancellor has introduced a new “double lock” system for the next year, to account for the way the Covid pandemic has inflated wage growth.

The SNP’s pensions spokesperson Amy Callaghan MP said: “Under Westminster control, Scotland’s pensioner’s already have among the least generous pensions in north west Europe – and now the Tories are making the situation even worse. As the details of Rishi Sunak’s budget continues to come to light, there can be no doubt that he and the Tories have betrayed Scotland’s pensioners.“Despite the shockingly low existing state pension level, the Chancellor thinks it’s wise to make matters even worse by scrapping the Triple Lock and freezing the benefits older people rely on. It defies logic. After a decade of Tory austerity, millions of pensioners across the UK are now living in poverty – and things are set to get even tougher under this Tory government."

She added: “Scotland’s pensioners will continue to be vulnerable under Westminster rule. Thankfully though, Scotland can take a different path. With the full powers of independence, we can protect pensioners, eradicate poverty, and build a more progressive nation.”

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