SHIP slams government for "almost insulting" pension hike

11/12/2008

The government's latest pre-Budget report (PBR) didn't offer enough to Britain's pensioners, it has been claimed.

According to Safe Home Income Plans (SHIP), an equity release firm, high inflation rates are wiping out the increase to the state pension offered by the report.

Figures from the firm show that the extra £4.55 a week to the state pension announced in the PBR will be counterbalanced by a "pensioner inflation" rate that currently stands at 8.7 per cent a year.
This total - much higher than the government's own latest inflation marker of 4.5 per cent - reflects the fact that over-65s spend a higher amount of their income on goods that have increased a lot in price over the past year, including food and fuel.

Andrea Rozario, director general of SHIP, commented: "The Government has offered too little, too late to pensioners in this year's pre budget report. A £60 bonus paid in January barely covers a third of what will have been eroded from their pensions over the tax year by inflation.

"The additional £4.55 a week for single pensioners is almost an insult and much more needs to be done to help the 2.1million pensioners living in poverty."

Tags; Income Worries and Debt, Retirement Money Problems,

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