news story

26th February 2010

Local MP to Challenge Government over Pension Cut for Thousands of Local Residents

Northavon MP Steve Webb will speak out in the House of Commons on Monday (1st March) in a last ditch attempt to prevent thousands of local pensioners from seeing the real value of their pensions cut in April.

The MP, who is the Lib Dems' spokesperson on pensions issues in Parliament, will take part in a debate at Westminster on the new rates of pensions and benefits which will apply at the start of the new financial year. Under normal circumstances, pensions and benefits rise at least in line with inflation. But this year the Government has decided that parts of the state pension will be frozen.

Whilst the 'basic' state pension will rise by 2.5%, the 'additional' pension which relates to the amount that people used to earn before they retired will not go up at all. Most pensioners have some additional pension, and for some this can be as much as a third of their total pension.

With inflation now running at around 3.5% per year, and South Gloucestershire Council planning a Council Tax rise of 2.5%, a freeze on pension payments will make life even harder for many local pensioners.

Steve Webb said:

"When the Government announced last year that the pension would go up by 2.5%, most people would have thought this applied to their whole weekly pension. But when we read the small print we realised that the Government was picking and choosing - some parts of your pension will go up by 2.5% but other parts will be completely frozen.

"Now that inflation has picked up again, many older people will face a real squeeze in April as a result of this mean-minded decision. I will be urging all MPs to block these proposals when the issue is debated in Parliament next week".

Letters are going out at the moment telling people what rate of pension they will receive from April and many will only now realise that only part of their pension is to be increased. Steve Webb is keen to hear in advance of the debate from any local pensioner who is affected, either by e-mail to steve@stevewebb.org.uk or by writing to him at the House of Commons, London SW1A 0AA.