News story

15th February 2002

Sick Pensioners Stripped Of £175 Million A Year

Professor Steve Webb MP, Liberal Democrat Shadow Work and Pensions Secretary, today published new research, based on written parliamentary answers showing that in any given week, 34,000 pensioners are stripped of benefits worth £175 million a year as they lie on their hospital sick beds.

The shocking new figures show that in an average week, 34,000 are losing their Attendance Allowance, saving the Treasury £80 million per year. 33,000 are having their pensions docked, resulting in £57 million being deducted every year.

The Government have repeatedly refused to scrap the antiquated rules that mean a stay in hospital of longer than 6 weeks results in benefit reductions. The benefits are slashed despite the fact that many costs continue whilst the pensioners are in hospital.

Steve Webb MP said:

"The Government are quick to talk about giving more money to pensioners, but are rather quieter when it comes to admitting they are taking money off the most vulnerable amongst them.

While pensioners are in hospital, the bills continue to land on the doormat. This money is needed to keep the wolves from the door.

"The pension is something that people contribute to throughout their working lives. Why the Government think they have the right to take this off sick pensioners is beyond me. It amounts to a tax on the sick.

"It is high time that the Government put a stop to taking money off sick people and instead produced evidence showing what happens to their costs while they are in hospital."

ENDS