News story

5th April 2005

Mystery of the Vanishing West Country Pension

Pensioners in the West could see next week's pension rises wiped out by a combination of council tax increases and hikes in bills for water, gas and electricity. This is without taking into account any other increases in their cost of living.

Figures obtained by Northavon MP Steve Webb from the independent House of Commons Library show that pensioners in this area will be especially hard hit because of the high increases in water and sewerage bills this year. Wessex Water is raising its prices by 9% above inflation, an increase of almost £30 a year, or 60p a week.

A typical single pensioner living in South Gloucestershire, who gets water and sewerage services from Wessex Water, will see their core bills increase by about £2.85 a week, whilst their state pension rises by £2.45. In Bristol City, where council tax bills have risen by more, a single pensioner will be out of pocket by around 58p a week. Although pensioners have been offered help in the Budget with Council Tax, this will not be paid until Christmas (as part of the Winter Fuel Payment system) and will not be repeated in future years.

Steve Webb said: "These figures highlight the woefully inadequate level of the state pension. Pensioners in the West will see a cut in their standard of living because of these huge increases in bills and taxes.

"The only way to ensure that pension rises are not swallowed up by increasing bills is to ensure that people have a decent state pension to live on, and which rises in line with average earnings each year.

"The Liberal Democrats propose an increase of more than £100 per month in the pension, starting with the over 75s, to ensure a decent standard of living, not dependent on means-tested top-ups.

"Pensioners have worked hard all their lives and given a great deal to our society. It is only right that they are treated with dignity and offered security in their retirement."

Notes:

* Utility bills are based on the average for all households. Average household energy spending by elderly households may be slightly lower than the overall average.

* South Gloucestershire single pensioner:

Type of bill Average increase per week

Wessex Water £0.60
Electricity £0.60
Gas £1.05
Council tax (average band C £0.60
For single pensioner)
TOTAL £2.85

Pension increase
(single pensioner) £2.45

What will be left over - 40p


* Bristol city single pensioner:

Type of bill Average increase per week

Wessex Water £0.60
Electricity £0.60
Gas £1.05
Council tax (average band C £0.78
For single pensioner)
TOTAL £3.03

Pension increase
(single pensioner) £2.45

What will be left over - 58p