Wednesday 12 March 2008

Little cheer for older people

Alastair Darling has delivered his first budget, but there was little in it to help the millions of hard-up older people in the UK.

Other than stinging those who like a tipple – 55p on a bottle of spirits – there is little in the Budget that will particularly hit pensioners in the pocket. It is more what was not in it that will concern older people.

But first, the good news; as widely anticipated, Darling has increased the winter fuel payments from £200 to £250 for the over 60s and from £300 to £400 for the over 80s.

While the increase is welcome, it will not provide that much help. With some energy providers hiking prices by more than 10% in recent months, the extra £50-£100 will not go far – certainly not far enough to stop pensioners turning their heating down to make ends meet. Overall, prices have increased by more than half in the past five years, while before today the fuel payment had remained static, except for a £100 rise for over 80s in 2003/4.

Staying with energy, the Chancellor has also announced help for the five million people on pre-pay meters, many of whom are pensioners, and who can pay up to £300 more for their energy than those who pay online. He said energy companies should spend £150 million on social tariffs - ways of ensuring that the most vulnerable consumers benefit from the cheapest rates for energy and have access to important support - which could be backed up with legislation, if needed.

Again, this is a welcome helping hand for older people, but doubtless campaigners will say it is not enough.

Other than that, pensioners received precious little mention in the Budget. For instance, there was no mention of a further increase in the basic state pension, which many had been hoping for, especially in light of recent rising energy, food, petrol and council tax costs.

There was also no announcement of measures to help people claim benefits they are entitled to – Help the Aged say that £4.5 billion goes unclaimed each year.

Elsewhere, charities had called for the government to address the massive shortfall in social care funding, which has seen many councils move to provide care services only to those with critical needs. Again, no mention was made of this.

So, with several major issues ignored, and winter fuel payment increases not going as far as many hoped, this Budget is not one to cheer pensioners. And with the increases in duty on alcohol, many won’t even be able to afford to drown their sorrows.

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