Tuesday 22 June 2010

Bill Carson, Chair of Age Sector Platform, responded to the budget announcement made by Chancellor George Osborne today:

“Today’s budget will have minimal impact for older people living here.  Although we welcome the long over-due promise to link the state pension with earnings by April next year, this measure simply does not go far enough in tackling the widespread issue of pensioner poverty.  In fact, pensioners in the UK have the fourth highest level of poverty in Europe; which demonstrates the need for more action to tackle this issue.” 

The basic state pension was increased by a meager £2.40 per week for single pensioners and £3.85 for couples in April 2010.  This increase and the current coalition government’s ‘triple guarantee’ to increase the state pension in line with earnings, prices or 2.5% (whichever is the greater) by April next year is totally insufficient.  The value of the state pension has fallen significantly over the past few decades, and a dramatic increase is necessary.  A decent state pension would eradicate many of the income related problems facing older people caused by unfair means-testing, low benefit uptake, a weak private pensions system and a low interest rate.

Today’s announcement that VAT will be increased to 20% will also have a detrimental impact on older people, who are more likely to be living on low incomes.  This measure will be of real concern to pensioners already struggling to make ends meet.”