Saving and retirement - Budget news from the DWP

23/04/2009

The Department of Works & Pensions have issued a reminder of the contents of yesterday's Budget that directly affect older people.

 

These are:

 

From April 2011, grandparents who look after their grandchildren for more than 20 hours a week while their parents are at work will get National Insurance top ups that count towards their State Pension so they do not miss out.

 

More people will be eligible for Pension Credit and help with council tax bills because savings up to £10,000 will be completely disregarded, compared with the previous £6,000. It will mean an average of £4 extra a week from November.

 

Winter Fuel Payments increased last year in response to rising fuel costs. They will stay at the raised level this year - £250 for households with a person aged 60 or over or £400 if they are aged 80 or over.

 

The Basic State Pension will increase next year by September’s Retail Price Index or by 2.5%, whichever is higher, even if RPI is negative.

 

HMRC will be writing to everyone who receives Pension Credit to tell them how to claim back any tax paid on income from savings over the last six years which may have been paid in error.

 

Winter fuel allowance will be maintained at higher level - £250 for over 60s and £400 for over-80s - for another year.