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‘A SPOONFUL OF SUGAR TO MAKE THE BAD MEDICINE BUDGET GO DOWN’

Gordon Lishman, Director General of Age Concern, said:

“An increase to the Winter Fuel Payment this year1 is a spoonful of sugar to make the bad medicine Budget go down for pensioners. Although this announcement is welcome many older people will feel it is nowhere near enough to address the cocktail of price hikes they have had to swallow this year. With limited room to manoeuvre this Budget suggests older people are not among the Chancellor’s key priorities.”

Energy Bills
“Whilst increases to the Winter Fuel Payment this year are good news in the short-term, we need to see a long-term solution for the estimated 2.25 million older people in fuel poverty. Vague promises on extra help on pre-payment meter charges and social tariffs simply aren’t enough for the government to meet its target on fuel poverty. A radical new package of measures should be introduced to target all of those in fuel poverty.

“Energy industry profits and the extra VAT revenue the government receives could have been re-directed into providing targeted support for the poorest pensioners and other groups hit hardest by the hikes. We wanted to see the £200 Winter Fuel Payment raised to at least £300 and significant investment made in energy efficiency schemes, in particular increasing the maximum Warm Front grant available. Through the Energy Bill the government should also make it compulsory for energy companies to offer meaningful social tariffs to vulnerable groups.”

Pensions
“It is very disappointing that on the hundredth anniversary of the state pension’s introduction, the government has missed yet another opportunity to bring forward the date to re-establish the link to earnings. Older people are feeling the pinch of huge hikes in living costs, yet the real value of the state pension is declining.”

Savings
“The government’s commitment to encouraging those on low income to save is welcome. However it must ensure that the Savings Gateway scheme it intends to provide does not have a discriminatory cut-off point which denies help to those aged over 65.

Social Care
“The government has acknowledged social care is one of the main priorities for public service reform, yet this was not even mentioned in the Budget. Its commitment to addressing the social care crisis isn’t being backed up with enough money. It is estimated that Local Authorities are failing to provide 1.5 million older people with all the care they need in their own homes. Without radical reform of the system in the long-term, and more funding in the short-term, the Government’s rhetoric on social care will continue to fall short of reality.”

Council Tax
“Many pensioners will be disappointed that the government hasn’t offered any help with their Council Tax bills. Council Tax should be replaced by a fairer system that reflects people’s ability to pay. In the mean-time efforts to improve the take-up of Council Tax Benefit must be increased and there should be moves towards a system of automatic benefits payments. 

Gift Aid
“The government’s commitment to providing a transitional rate of gift aid to allow charities to continue to enjoy the same level of benefit despite changes in income tax rates is a welcome short-term measure.

ENDS

Notes to Editors:

1. The £200 Winter Fuel Payment for those aged 60-79 has been increased by £50 and the £300 payment for those over 80 has been raised to £400 for this year.