News story

18th November 2002

Pension to Rise by 75p in Next Fifty Years

Steve Webb MP, Liberal Democrat Shadow Work & Pensions Secretary, today revealed new figures commissioned from the independent House of Commons Library that show why the pension will, in today’s money, increase by a paltry 75 pence over the next fifty years. The figures are revealed on the same day the Government announces next year’s benefit increases.

The figures provide an explanation of a Government written answer revealing that the current £75.50 per week pension will, in today’s prices, increase to only £76.25 in fifty year’s time. The Library note shows the increase will result from the Government’s long-term policy of increasing the pension by 2.5% or inflation, which ever is the higher.

Steve Webb said:

“The shocking figure will bring back memories for many pensioners of this Government’s 75p pension increase.

“The Government has finally admitted that it sees no future for the basic state pension. Over the next fifty years the economy is predicted to more than double and this new admission reveals that pensioners will continue to get left further and further behind.

“The Government must take a long hard look at this pathetic prediction and commit themselves to a decent future for the pension, starting by significantly increasing the pension for older pensioners.”

ENDS