If the humanity of a country were to be judged by how it treats its senior citizens, the UK would occupy a low position in the table of compassionate nations.

The Chancellor’s Spring Statement is an opportunity to deliver justice to retirees, but I would not count on it. Pensioners have been treated badly by all political parties.

In 2021, the median state pension or basic pension for women who reached state pension age in 2016 was £150.25 per week, compared to £172.83 for men. The median weekly state pension for those who reached state pension age after 2016 was £174.47 for women, compared to £178.52 for men. The current full state pension of £9,350 is received by only four out of ten retirees. The annual total cost of the state pension was around £100.5 billion.

The first thing to note is that the rhetoric of equality has been used to rapidly increase the state pension age for women from 60 to 66, the same age as men. However, there is no equality of state pensions. Women who frequently act as unpaid carers miss out on the state pension as they are unable to make the necessary national insurance contributions.

The state pension is the main or the only source of income for the majority of retirees. At around 25% of average earnings, it is the lowest state pension, as a fraction of average earnings, in the industrialised world. It is around half of the national minimum wage.

In OECD countries, the state pension is nearly 60% of average earnings. The EU average is close to 63%.

In 2010, the triple lock on the state pension was introduced. Under this formula, the state pension would increase by the rate of consumer price index (CPI), average wage growth or 2.5%—whichever is higher. However, despite the triple lock, the proportion of elderly people living in severe poverty in the UK is five times what it was in 1986, which is the largest increase among major western countries. Some 2.1 million pensioners live in poverty, and the poverty rate has actually increased since 2012-13.

Poverty takes its toll. Malnutrition affects over three million people, including 1.3 million retirees. Around 25,000 retirees die from cold each year as they have to choose between heating and eating. Retirees receive Winter Fuel Payment in the range of £100-£300, but the amount has remained unchanged since 2011. To take account of inflation, even before the current major increase in energy prices, it needs to double.

The government recently had an opportunity to uplift the state pension. Due to statistical quirks caused by the pandemic, in September 2021 average wage growth was 8.1%. In accordance with the triple-lock formula the state pension needed to rise by 8.1%. This was easily payable as the National Insurance Fund account, out of which the state pension is paid, had a surplus of £42.5 billion. However, despite the election manifesto pledge, the government chose to suspend the triple lock. Instead, next month, the state pension will rise by only 3.1%, the CPI rate prevailing in September 2021. The 3.1% increase will kick in at a time when inflation is expected to be close to 8%. In fact, the state pension will be cut in real-terms at a time when pensioners will face steep energy and food costs.

By suspending the triple lock, the government will deprive retirees of £5.4 billion of pensions in 2022-23. This rises to £5.78 billion in 2023-24, £6.1 billion in 2024-25, £6.5 billion in 2025-26 and £6.7 billion in 2026-27. A total of £30.5 billion has been removed from pensioners’ pockets over the next five years. Pensioners will never ever be able to claw that back.

With rising food and energy prices, many pensioners will struggle to make ends meet. The Chancellor needs to change policies and offer immediate relief. This should include a doubling of the Winter Fuel Payment—restoring its real value. The Chancellor needs to increase the state pension by at least 8%. Women’s state pension must be equalised with men.

Of course, the state pension is still too low. The government needs to be bold and commit to aligning the state pension with the living age, within the lifetime of a single parliament. This will go some way towards bringing the state pension nearer to the EU and OECD average and enable our senior citizens to live with dignity.

Some will ask how this will all be paid for. A country that has bailed out banks and handed £895 billion of quantitative easing to speculators can easily find resources for its senior citizens. It can also raise resources by eliminating tax anomalies. For example, currently, capital gains tax—a tax paid on the profit from the sale of assets other than your main home—is at the rate of 10-28%, whereas earned income is taxed at marginal rates of 20-45%. The recipients of £65.8 billion of capital gains do not pay any national insurance. This allows the wealthy to pay a lower rate of tax on their investments than working people do on income from wages. By taxing capital gains at the same rate as earned income and charging national insurance on the same, around £25 billion can be raised each year. This one reform is enough to increase the state pension substantially and end poverty for our pensioners.