MediaContact: Susanna Mordaunt/ KateyKaram

Telephone: 020 8765 7515/ 7514

Forimmediate release: Wednesday,April 9 2003

AgeConcern response to the Chancellors Budget statement

GordonLishman, Director General of Age Concern England said:

Pensions

We are delighted that the Government has scrappedthe unfair rule which cuts older peoples pensions and benefits when they gointo hospital. This is a victory forAge Concern and will be a huge relief to tens of thousands of older people whowould otherwise suffer reductions in their pensions and benefits when they areat their most vulnerable.

It is good news that the Winter Fuel Payment forover 80s has been raised. The extracash for pensioners on the Minimum Income Guarantee will boost their weeklyincome to more than 100 for the first time.

However, many pensioners wont feel the benefit ofthe extra cash because the money isnt getting to them. The Governmentscurrent targets for the take-up of the Pension Credit are too low* and willleave a million of the poorest pensioners out of pocket.

CouncilTax

Although the basic state pension andbenefits have risen by slightly more than the rate of inflation, many people willbe worse off because average council tax bills are due to rise by four timesthe rate of inflation.

Many pensioners livingin these areas will understandably feel that what is being given with one handis being taken away by another. The sharp increases in council tax underlinesthe need for a more adequate basic state pension that reflects people's actualliving costs.

Employment

The Chancellors announcement that local jobcentre managers will be able to offer better support and early entry to the NewDeal should make it easier to get into work. Getting older people back intoemployment must be central to the criterion for success.

More help for disabled people is welcome as 60% ofthis group over 50 are not in work.

Older workers would greatly benefit from makingthe New Deal 50+ available to anyone out of work from day one.

Notes toeditors: m/f

Thehospital downrating rules will now come into effect after one year instead ofsix weeks. DWP figures given to theHouse of Commons in Feb 2002 said at any one time:

• 26,000 older people were affected by the original six week rule.
• Of these 5,000 people would have been affected by the proposed 13 week rule

Pleasecall Age Concerns press office on 020 8765 7515 for a more detailed briefing.

* Government targets aim for 75% take-up of thePension Credit by 2006. Age Concern believes Government should aim for 75%take-up by 2004, rising to 85% by 2006. Around 5 million pensioners will beentitled to Pension Credit. Current DWP take-up figures show that up to a thirdof older people (670,000) who are eligible for the Minimum Income Guaranteemiss out.