"Change policy to end rising pensioner poverty," Government told

17/07/2008

Britain’s biggest pensioner organisation, the National Pensioners Convention (NPC), has called on the government to change its pensions’ policy because it is failing to tackle the growing problem of pensioner poverty.

 

The latest figures contained in the Household Pension Resources study from the Office for National Statistics show that in the last year, 61% of all single pensioners were living on less than £10,000 a year, whilst 45% of all pensioner couples had less than £15,000.

 

The figures come just a month after it was revealed that in the last

12 months 300,000 pensioners had fallen below the official poverty line, bringing the total number to 2.5m (23% of the pensioner population). Exactly the same figure as a decade ago when the government first came to power.

 

The NPC believes that rising food, fuel and other household bills, coupled with the continued decline in the purchasing power of the basic state pension, which is currently just £90.70 a week, are forcing increasing numbers of older people into financial difficulties.

 

Frank Cooper, NPC president said: “It is a shocking indictment of the government’s pensions’ policy that millions of older people have an income that is completely inadequate and amongst the worst in Europe. 

 

"For years ministers have relied on both means-tested benefits and the availability of private pension schemes to provide a decent income in retirement – but the whole basis of this strategy is unravelling.

 

"Means-testing remains inefficient and unpopular and most pensioners receive less than £5000 a year from their occupational pensions. 

 

"Those worst affected are older women living alone; for whom pensioner poverty is a real issue. In light of the current increases in the costs of living – pensioners simply cannot afford to survive. We need a change of direction in pension policy before it’s too late," said Mr Cooper.

 

“The government has said it will restore the link between the state pension and earnings in 2012, but by that time around three million of today’s pensioners will be dead – and the pension’s purchasing power will have continued to fall. The link with earnings will therefore only provide an extra £1.40 a week more in 2012 than pensioners would have got anyway under the present system. This is simply too little, too late.

 

“It is completely unacceptable that in the centenary year of the first ever state pension, millions of older people are still living in poverty. If a society is judged by how it treats its older citizens, then we are seriously failing. Pensioners don’t want charity – they have earned the right to a decent state pension that is set above the poverty level of £150 a week and rises each year in line with earnings. It is time the government realised that older people deserve better.”