State pension rises 'insulting' by Finance News Bulletin

Published: 06/12/07

Campaigners have criticised the government for limiting the condition pension rise to price rises next yearIt will be worth £9070 for persons and £14505 for couples from April, the Pensions Minister confirmed, a go up of £3

40 and £545 respectivelyPension credit, which rises in line with earnings, will guarantee a smallest amount weekly profits of £12405 for a single pensioner and £189

35 for a coupleDelivering the annual benefits uprating statement to assembly, Mike O'Brien told MPs the increases in the state pension and pension credit would make a real dissimilarity"From April next year, no single pensioner should exist on less than £12405 a week and no couple on less than £189

35, a go up of £57 for a solitary pensioner and £85 for couples since 1997," he saidFrom 2008 pensioners would be able to claim up to four reimbursement - pension credit, state pension, housing benefit and committee tax benefit - through one phone call, he said"The changes we intend will create the system less confusing, less intrusive and more transparent," he supposed"We want the customer to get their state retirement fund entitlements with a smallest amount of fuss, bureaucracy and form-filling

"They will be funded by reducing the period for which pension praise can be backdated from 12 to three monthsThe government also unveiled measures to allow pensioners to spend longer periods abroad before behind their entitlement to retirement fund creditThe limit will be increased from four weeks to 13 weeks, bringing pension credit into row with the rules for housing benefit and committee tax benefitBut pensioners' groups have criticised what the nationwide Pensioners Convention (NPC) called a "derisory" increase

"In result 39% is no real rise for pensioners, because it will be eaten up by increasing council duty and energy bills," said NPC spokesman Neil Duncan-Jordan"To suggest £340 is a rise is little short of abusive

It will do nothing to tackle pensioner poverty"The NPC is vocation on the government not to wait until 2012 as planned to restore the link between the state pension and pay It argues that three million of nowadays's pensioners will die before thenIt also wants the government to increase the height of the basic state retirement fund to the level of the minimum profits guarantee part of the pension credit

"The restoration of the earnings link will only make a significant difference if is applied to a better starting amount," Mr Duncan-Jordan addedAge Concern said there were still 18 million older populace living in poverty, many of whom were missing out on means-tested benefits to which they were entitled"The government must do much more to get vital benefits money to those who need it the most so that all pensioners can afford a decent quality of life," said its manager general Gordon Lishman

Mr O'Brien told MPs that "targeted support from pension praise and £11bn value of extra funding" had already lifted a million pensioners out of povertyAnnuity improvement Women 1 Women 2 Pension rights Divorce labor pensions Lump sums Pension Credit Frozen pensions Shortfalls Overseas pension Small pensions Tax and pensions retirement fund repair Made simpleState pension With-profits last salary Money purchase Annuities Serps

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