‘SOME GOOD NEWS FOR PENSIONERS BUT LARGELY A STOP-GAP BUDGET’

Age Concern’s response to the 2007 Budget

Gordon Lishman, Age Concern’s Director General, said:

“This is a stop-gap budget for pensioners. The Chancellor has bowed out of his final Budget by ignoring the needs of some of the poorest older people, largely the 2.1 million who aren’t claiming Pension Credit. Many pensioners will feel very frustrated by today’s speech, particularly with yet more council tax and water bill rises around the corner.”

Ø      Pensions

Ø      Income tax

Ø      Financial Assistance Scheme

Ø      Fuel bills

Ø      Council tax

Ø      Long-term care

On pensions

“It’s good that the Pension Credit will continue to rise in line with earnings but this is nothing new and won’t help the 2.1 million pensioners who are missing out on the benefit. It is extremely disappointing that the Government has failed to announce a date for re-linking the state pension to average earnings. Without quick intervention, the real value of the basic state pension will fall to a pitiful £75 by 2012 and today’s pensioners will fail to benefit from any of the good measures proposed in the Pensions Bill.

“Older women and carers, who have already retired with incomplete NI records, will also miss out unless pensions reform is introduced retrospectively.”

On income tax

“It’s really positive that the Chancellor plans to lift 600,000 pensioners out of income tax. This will make the system more simple and fairer for those with a modest level of income or a small amount of savings, who are currently caught in the income tax trap.”

On the Financial Assistance Scheme (FAS)

“Brown’s plan to extend the FAS to £8 billion is really welcome and should at least go some way to help the 125,000 workers who so unfairly lost their pensions.”

On fuel bills

“The Government cannot assume that because energy companies have recently lowered their prices, pensioners can now afford to pay their bills. Steep and steady hikes in gas and electricity prices have led to inflation-busting bills that have pushed thousands more older people into fuel poverty. The annual Winter Fuel Allowance is a very popular payment and the Chancellor’s refusal to increase it will disappoint many pensioners.”

On council tax

“Many pensioners will be bitterly disappointed that the Chancellor failed to offer any help with their spiralling council tax bills. Since Labour came to power, council tax bills have almost doubled whilst the Basic State Pension has risen by scarcely a third. The Government must act on Lyons’ recommendations that Council Tax Benefit should be received automatically, without having to claim, and the savings limit should be increased to £50,000. In the short term, the Government should make it much easier for people to get the help they are entitled to by introducing a single telephone claim line for all means-tested benefits.”

On long-term care

“Ignoring the crisis in long-term care funding will not make it disappear. The fact is there is simply too little money in the system to improve the quality of care and the problem is set to get worse as the population ages. The Chancellor has missed an opportunity to kick-start an open and honest public debate - as we had with pensions – to urgently deliver a long-term care settlement that is simple, fair and sustainable.”