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Pensioner poverty

Charles Kennedy has set out Liberal Democrat plans to tackle pensioner poverty, saying it is the most comprehensive package of any major party.

At the launch of a 'mini-manifesto' on Thursday, the party leader said the policies were aimed at lifting the most vulnerable pensioners out of poverty and ending unfairness in the system by bridging the gap between men and women.

"It is inexcusable that two million pensioners today live below the government's own poverty line," Kennedy said.

"And it is, quite simply, a scandal that many women pensioners are not entitled to a full basic state pension in their own right."

Party Response: Liberal Democrats

Steve Webb, Liberal Democrat work and pensions spokesman, said: "The choice couldn't be clearer. Liberal Democrat policies will lift the most vulnerable pensioners out of poverty; end the iniquitous discrimination against women and offer dignity to all those in need of personal care.

"Labour is the party of mass-means testing and the Tories have tacked women onto their plans as an afterthought with no plans to close the disgraceful gap between men and women.

"Our plans for a Citizen's Pension, based on residency and not contributions, will dramatically cut means-testing, will be fairer for women and are gaining favour in all quarters. Labour and the Tories talk about what an interesting idea it is, but neither of them will actually commit to it."

Stakeholder Response: ARPO50

John Ball, ARP050 economist, said: "ARP050 warmly welcomes the proposal to increase pensions to the level of means tested benefits for the over 75s.

"We, along with other older people’s organisations, have been campaigning to reduce the impact of means testing on pensioners which is widely seen as unfair, an invasive of privacy and a deterrent to saving. The Lib Dem proposal will eliminate a large chunk of means testing and will be an important step in the right direction.

"We particularly welcome the intention to uprate the pension in line with earnings. This is the only way of ensuring that all older people will share in growing national prosperity.

"The benefit of a complete change to a Citizen's Pension is less obvious. The same result for older pensioners could be achieved much more easily and quickly with minor changes to the existing Category D pension rules. But this is a minor quibble.

"The proposal is good for today’s pensioners and, by reducing the penalties of means testing, will encourage today’s workers to invest in personal and occupational pensions and thus help tomorrow’s pensioners."

Stakeholder Response: Help the Aged

Mervyn Kohler, head of public affairs at Help the Aged, said: "The MORI poll that we publish today confirms that the older electorate is of utmost importance to politicians of all hues.

"Over a quarter of over-65s - 1.76 million voters - have not yet decided how they will vote. The Liberal Democrats deserve applause for their package of measures aimed at addressing the needs of older people.

"The way the UK treats its pensioners is a disgrace, and these proposals hold out the prospect of serious improvement.

"The potentially catastrophic cost of personal care is a major worry, and the policy of free personal care which the Liberal Democrats have helped to implement in Scotland has proved to be very popular.

"The inequity of the council tax has been a running sore for people on fixed incomes, and the proposal for a local income tax firmly addresses that charge.

"And in moving to a Citizen's Pension, paid at a more respectable level than our miserably mean basic state pension, there is a genuine effort to deal with the scandal of pensioner poverty and the inexorable rise of means testing.

"These improvements come at a price, but it is the price of catching up on years of neglect. The older population should be a vigorous and active resource for society, but will fail to reach this potential if they are left in near poverty and treated as second class citizens."

Stakeholder Response: Age Concern

Gordon Lishman, director general of Age Concern England, said: "Finally the parties are realising that it is older people who could have the deciding votes at the upcoming general election.

"People over the age of 55 are twice as likely to vote as those under 55, and the parties need to convince them that they will deliver for them if elected.

"Age Concern's research shows that two-thirds of over 55s say they are absolutely certain to vote and millions of their votes are up for grabs.

"Many older people will welcome policies on council tax and improvements to the pensions system for women. Women pensioners are most at risk of poverty in retirement and many pensioners who live on fixed incomes are hit hard by council tax bills.

"Age Concern believes that the only way to ensure that everyone has a decent income in retirement is to increase the basic state pension to at least £109 per week.

"If the parties want to win over the crucial older voters they need to show how they will provide a decent income in retirement, an end to ageism and access to good public services."

Published: Thu, 10 Mar 2005 15:36:09 GMT+00