Policy

Pensioner Poverty

Pensioner poverty should be a national priority‚ with an agreed timeline for its elimination. A substantial increase in the basic state pension would be the quickest way to reduce pensioner poverty‚ but whilst the Government remains committed to a strategy in which means-testing plays an important part‚ it must act to improve the take-up of benefits.

The Government should move towards automatic payment of benefits‚ removing the onus on older people to claim. Meanwhile‚ the process for claiming should be simplified and public and voluntary agencies should work together to promote take-up and help people claim their full entitlement.

Pension reform

The pension reform package is a welcome step towards securing adequate retirement income for all‚ especially the permanent linking of Pension Credit to earnings. However the sustainability of the reform package must be kept under review as economic and financial conditions change.

The earnings link should be restored for the Basic State Pension immediately‚ rather than from 2012 or later. Reductions in contribution requirements for the Basic State Pension should be retrospective so women and carers who reach state pension age before 6 April 2010 can benefit.

During the recession the government should also investigate whether emergency measures are needed to support people with low and middle incomes who are due to retire or who are reliant on savings and investments.

The introduction of auto-enrolment and matching employer contributions for occupational pensions from 2012 is positive. However‚ the reform must include safeguards to ensure that pension options are suitable for people with low incomes and interrupted working lives.

Costs of living

Older people with low incomes spend a high proportion of their money on food‚ fuel and other basic services. The government must ensure these essentials remain affordable.

It should urgently renew its fuel poverty strategy to ensure it is fit for purpose as prices fluctuate. High fuel costs should be tackled by: preventing the overcharging of people paying by cash‚ cheque or pre-payment meters; requiring that all companies offer adequate social tariffs; and extending Warm Front to pay for 100 per cent of the costs of insulation and central heating for all low income pensioners.

Managing money

Financial education and advice should be available at all ages. The FSA and Government should ensure that people considering annuities and equity release products can make an informed choice and achieve good value.

Financial providers should ‘age proof’ their services by consulting their customers and adopting principles of inclusive design. Cheques and girocheques should not be phased out until alternatives suitable for vulnerable consumers are in place.

Meanwhile the Post Office Card Account should offer a wider range of services‚ including the ability to pay bills‚ and all current accounts should be available via the Post Office.

Financial abuse should be addressed through awareness raising initiatives and national multi-agency leadership with mandatory requirements to co-ordinate actions and publish action plans.

To find out our full policy position on financial issues for older people‚ download the documents below.