pensions

Pensions.

In the budget the chancellor announced details of a 2.5% increase in the Old age Pension.
What he didn’t say was the increase only applied to the Basic element of the pension.
Let me explain.

The pension is composed of 3 elements.
1) Basic
2) Additional
3) Graduated.
Whilst the basic part was increased by 2.5% the other parts were not.
The overall increase was actually 1.3%,

There was no increase in Tax allowance and build in 3% for inflation and Pensioners were actually much worse off.

Years ago, Lord Turner was asked to do a review of the state pension.
He concluded amongst other things, that the pension should be linked to earnings.

This has still not been implemented and now (it must be election year) Gordon Brown is saying that it will come in 2012.

Why should pensioners have to wait so long?

This link to earnings by the way was abolished by the Thatcher Government.

The chancellor also announced in the budget that the winter fuel allowance would continue for this year.

What happens after this?

Are they going to abolish WINTER?
Is it not time that we recognised the contribution that the elderly have given to this country by their dedication and hard work in bringing up families, fighting wars and generally improving the lives of others for the future.