{"id":552251,"date":"2025-11-06T05:35:48","date_gmt":"2025-11-06T05:35:48","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/552251\/"},"modified":"2025-11-06T05:35:48","modified_gmt":"2025-11-06T05:35:48","slug":"im-73-and-worry-about-bills-ahead","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/552251\/","title":{"rendered":"I\u2019m 73 and worry about bills ahead"},"content":{"rendered":"

\n\t\t\t\t\tPaul Kelsey is among thousands of retirees whose private pensions do not keep up with the cost of living due to a \u2018loophole\u2019 in the law\t\t\t\t\t <\/p>\n

Retired Britons living \u201cunder the cosh\u201d of soaring bills are urging the Government to take action after their private pensions were frozen<\/a>.<\/p>\n

Paul Kelsey, a 73-year-old who lives in Wales, is worried about how he and his wife will pay bills in the future because his private pension cannot keep up with cost of living increases<\/a>.<\/p>\n

Mr Kelsey, who worked for a firm bought out by computer giant Hewlett-Packard, wants the Government to change the law so that the company raises pension payments in line with inflation<\/a>.<\/p>\n

\u201cPensioners like me are under cosh with cost of living increases,\u201d he told The i Paper. \u201cPrices have gone up so much.<\/p>\n

New FeatureIn ShortQuick Stories. Same trusted journalism.<\/p>\n

\u201cIt\u2019s a tremendous worry that this pension won\u2019t keep up with what\u2019s ahead,\u201d Mr Kelsey added.<\/p>\n

\u201cThe value [of the pension] will get worse and worse over time. I worry about coping with the impact of bigger bills in the future.\u201d<\/p>\n

It comes as Chancellor Rachel Reeves<\/a> considers whether she can raise any money from pensioners at her Budget on 26 November<\/a>.<\/p>\n

A reduction to the 25 per cent tax-free lump sum on pensions, and a cut to the higher rates of pension tax relief, have been mooted.<\/p>\n

\u2018Loophole\u2019 stopping private pension rise<\/p>\n

A law passed in the mid-1990s by the then-Conservative Government \u2013 which required all companies to raise pensions with inflation \u2013 left out defined benefit (DB) pensions accrued before 1997.<\/p>\n

This type of workplace pension gives retirees an income based on their salary and how long they have been part of the scheme for.<\/p>\n

Most UK companies voluntarily increase payments annually, regardless of the law. However, a small group of multinationals have used the pre-1997 \u201cloophole\u201d in the law to avoid annual rises.<\/p>\n

Mr Kelsey and other campaigners are urging the Labour Government to \u201cfix\u201d the legislation so they get inflation-linked pension increases in future.<\/p>\n

The former computer expert worked for a company called Digital Equipment Corporation (DEC) for 17 years until 1996. Hewlett-Packard Enterprise later took over the firm and inherited its pension scheme.<\/p>\n

Mr Kelsey now gets around \u00a31,100 a month from his Hewlett-Packard Enterprise pension, along with \u00a3800 a month from his state pension.<\/p>\n

The 73-year-old estimates that if his private pension had kept pace with inflation, it would be worth almost twice as much by now \u2013 around \u00a32,000 a month \u2013 making life much easier.<\/p>\n

\u2018We\u2019ve had to cut back visits to family\u2019<\/p>\n

\u201cThe frozen pension has already had a severe financial impact,\u201d said Mr Kelsley.<\/p>\n

\u201cWe can\u2019t do everything we wanted to do. We don\u2019t go on holiday. We\u2019ve had to cut back on visits to family in other parts of the country.<\/p>\n

\u201cWe can\u2019t be as generous with the grandchildren as we\u2019d like to be. We\u2019ve had to cut back on eating out, we don\u2019t do that much. We\u2019ve had to go into savings to pay some energy bills.<\/p>\n

\u201cIt seems to me grossly unfair treatment,\u201d he added.<\/p>\n

\u201cI want the Government to say, \u2018This isn\u2019t on\u2019. It wouldn\u2019t cost the Government anything to fix this. We just want to stop the rot, so these companies have to give increases in future.\u201d<\/p>\n

\u2018I\u2019m angry as hell on behalf of pensioners\u2019<\/p>\n

Retirees in the Hewlett-Packard Pension Association (HPPA) campaign group are aware of several other multinationals companies \u2013 including drug giant Pfizer \u2013 who also avoid increasing their pre-1997 pensions each year.<\/p>\n

Just over 50,000 people in the UK who have pensions with these companies are affected by the issue \u2013 including the 5,500 people with a pre-1997 Hewlett-Packard Enterprise pension, according to campaigners.<\/p>\n

David McIlroy, a former DEC employee who lives in Scotland, gets around \u00a3630 a month from his Hewlett-Packard Enterprise pension. The 71-year-old also gets \u00a3980 a month from his state pension, and has some savings.<\/p>\n

\u201cI\u2019m enraged by the way these companies are behaving,\u201d said Mr McIlroy. \u201cIn practical terms, it [the private pension] has been frozen for decades.\u201d<\/p>\n

\"DavidDavid McIlroy has seen his Hewlett-Packard Enterprise pension frozen for years <\/p>\n

\u201cI\u2019m fortunate enough to be relatively okay, financially. But I\u2019m angry as hell on behalf of all the other pensioners, some of whom are already struggling to keep up with the cost of living.\u201d<\/p>\n

Hewlett-Packard Enterprise had increased the pension only three times \u2013 by 1 per cent in 2004 and 2008, and by 3 per cent in 2022 \u2013 in the past two decades, according to Patricia Kennedy, co-chair of the HPPA campaign group.<\/p>\n

Some pensioners are struggling to pay bills or find money to care for loved ones, while some have had to sell homes and downsize, Mr Kennedy said.<\/p>\n

MPs pushing for change in the law<\/p>\n

The campaign has won support from a cross-party group of MPs. Senior Conservative Sir Roger Gale previously told The i Paper he was working with others on an amendment<\/a> to the Government\u2019s Pension Schemes Bill to fix the pre-1997 \u201cloophole\u201d.<\/p>\n

Labour MP Dame Nia Griffith said it was \u201cshocking\u201d that some major multinationals \u201chave used a loophole in previous legislation to avoid index-linking the pensions of former pre-1997 employees\u201d.<\/p>\n

\u201cSo together with other MPs, I am looking at trying to get a clause into the Pensions Schemes Bill, which is currently going through Parliament, which would close this loophole and make these companies restore index-linking from now on.\u201d<\/p>\n

A Hewlett-Packard Enterprise spokesperson said the company was \u201ccommitted to satisfying all of its responsibilities\u201d.<\/p>\n

They added: \u201cThe decision on whether to grant discretionary increases to relevant pensioners is given careful consideration and is made based on a number of factors. It is reviewed on an annual basis.\u201d<\/p>\n

Pfizer declined to comment. The Government declined to say whether it will consider the amendment being worked on by MPs.<\/p>\n

A Department for Work and Pensions spokesperson said companies and pension trustees \u201care ultimately responsible for whether or not discretionary increases are paid\u201d.<\/p>\n

They said the issue of raising private pensions in line with inflation was \u201ca balance between providing members with some protection against inflation and not increasing schemes\u2019 costs beyond what they can afford\u201d.<\/p>\n

\t\tYour next read<\/p>\n


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