Latest developments

Pension reform

Pension reform continues with a bill currently before Parliament which will introduce personal accounts – a national‚ trust-based occupational pension scheme due to be introduced in 2012. Eligible employees will be automatically enrolled into a work-based pension – either the new personal accounts scheme or another qualifying occupational pension. Age Concern supports these measures and continues to work to try to ensure the new system fully meets the needs of those with low incomes and interrupted working lives.

Pensions Act 2007

The reform follows on from the Pensions Act 2007‚ which introduces changes to state pensions. These include welcome measures to improve state pension coverage (from 2010) and to re-establish the link between the basic pension and earnings (from 2012 or soon afterwards). However‚ Age Concern has argued that improvements should happen sooner and should apply to those already retired.

Poverty

Among those who are already pensioners‚ poverty levels have fallen over a number of years. However‚ this trend reversed in 2006-07‚ and there was little change in figures covering 2007-08‚ published in May 2009. These show that nearly one fifth of older people – around two million – live in poverty. This is partly because up to £5 billion of means-tested benefits are unclaimed by older people each year.

Discrimination

Lack of access to financial services can cause practical difficulties‚ increase costs‚ and in some cases‚ prevent older people from participating fully in society. We are pressing for the Equality Bill currently before parliament to contain effective measures to outlaw age discrimination in the provision of goods‚ facilities and services.

Financial inclusion

Banking issues have a heavy impact on older people. For example:

people who do not have a bank account with direct debit facilities may have to pay more for their utilities‚ and
people who do not have secure and convenient means of making payments may rely on cash to pay carers‚ but access to cash can be difficult for those with restricted mobility.

We are working to promote financial inclusion among older people‚ for example through the National Payments Plan.

Access to financial advice and increasing financial capability are also high on the policy agenda. We support the Government's proposals to set up a national Money Guidance service. We are working to ensure that the needs of older retired people are not neglected.

Our response papers

Download our responses to recent government consultations from the bottom of this page.

Our response to related policy is listed below: