news story

14th October 2009

Local MP Challenges Prime Minister over Pensioner Living Standards

Northavon MP Steve Webb today challenged the Prime Minister in the House of Commons over the impact of inflation on pensioner living standards. The MP pointed out that whilst falling interest rates were good news for borrowers, for many pensioners they simply meant less income from their savings. On top of this, the major items in the budget of many pensioners - council tax, fuel and food - continue to rise in cost.

With the state pension due to rise by less than £2.50 in April, the Lib Dem pension spokesman told the Prime Minister that many pensioners could find themselves 'out of pocket' compared with a year ago and called on Mr Brown to take further action.

In reply the Prime Minister said that the Government had raised the limits for tax free savings to encourage savers and would again put money into means-tested pension credit and into winter fuel payments.

Commenting, Steve Webb said:

"When pensioners see that the headline inflation rate is negative they must wonder where these figures come from. For people dependent on savings and spending a lot on council tax, food and fuel bills, the last year has seen a real squeeze in their living standards.

"A state pension that will still be under £100 per week after this April's increase is simply not enough to live on. Older people should have dignity and security in old age and not have to count every penny. As a first step the link between pensions and earnings, which was broken under the Conservatives thirty years ago, should be restored".