Notice: new credit guarantees pensioner income
Sylvia Moore (LICC & Geneva) circulated the following information to her branch officers and the LICC
15/10/03
'For your information and opinion, in case you have not seen this notice. The pension credit system is open to those living for at least 6 months of the year in the UK. However, there are now precedents in other areas, re Winter Fuel Payment, Medicare etc. which could be arguments for applying pensions credits to pensioners abroad. Maybe our contacts with Minister Wicks will help.'
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If you are living abroad and want to contact the DWP via an on-line information form click here.
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Monday 6 October 2003
More than two million pensioners will start to receive the new Pension Credit from today. It will guarantee everyone aged 60 and over an income of at least £102.10 a week, or £155.80 for couples.
The Government will also, for the first time, reward people
aged 65 and over for some of their savings and income they have for their retirement. In the past, those who had
managed to save a little were no better off than those who had not saved at all.
Commenting on the launch of the Pension Credit, Secretary of State for Work and Pensions Andrew Smith said:
'Over two million pensioners will be getting the new Pension Credit from today.
'The Pension Credit means extra money for pensioners and guarantees that it pays to have saved on top of the foundation of the basic state pension. The Pension Credit will see around half of pensioner households better off by £400 a year on average.
'With all Labour's pension reforms, the poorest third of pensioner households will be £1,600 a year better
off.
Responding to Tory pension plans, Andrew Smith continued: 'Linking the basic state pension to earnings is unsustainable
in the long term - The Tory's numbers just do not add up. Their proposals also do nothing to help the poorest pensioners.
Even Michael Howard admitted yesterday that under their proposals the poorest pensioners who claim the Pension
Credit 'will not be better off'.
'Their plans do nothing to help the very poorest pensioners, often women, with incomplete NI records who don't
get a full Basic State Pension but will now gain with the new Pension Credit.
'On top of this the Tory commitment to cutting public spending would see other extra help for pensioners such as
Winter Fuel Payments, Cold Weather Payments and free eye tests slashed if not axed altogether.
'On the day when over a million pensioners are getting more money through Pension Credit, David Willetts admits
he wants to see the Pension Credit 'die'.
'That's no surprise given their record. In 18 years the Tories only choose to put the Basic State Pension up once
in real terms and only then because they banged VAT on fuel. Their pension policy left 2.7 million pensioners in
poverty.
'The Pension Credit will change this by giving new money to those who have saved - up to:
£14.79 for single pensioners; or
£19.20 a week for those with a partner.
All pensioners who currently claim the minimum income guarantee have been transferred to the new system and will receive the Credit automatically.
All other pensioners will receive a letter between now and June inviting them to apply. But people who think they may be eligible can also call a freephone number now to find out more. Trained staff will take them through the application process in about 20 minutes over the phone, without the need for filling in complicated forms.
Pensions Minister Malcolm Wicks said: 'Our advertising campaign has been targeted to reach as many pensioners as possible. I want to see 100 per cent take-up and I would urge sons, daughters and grandchildren to tell anyone you know who might be entitled to make a claim - as our advert says: 'Pick it up, it's yours'.
Pension credit campaign pack for Labour Party members
The Pension Credit application line - 0800 99 1234 - is open 8am to 8pm Monday to Friday and 9am to 1pm
on Saturdays. The textphone number is 0800 169 0133. Interpreters are also available to help over the phone.
Pensions Credit Launch: http://www.labour.org.uk/pensioncreditlaunch/
Editors' notes:
'Those who are entitled to the pension credit and do claim...will not be better off.' (Michael Howard, Dimbleby
Programme, 5 October 2003)
'We want it [the Pension Credit] to die a natural death.' (David Willetts, Tory Press Release, 5 October 2003)
'I do not propose that we bring back the earnings link.' (David Willetts, House of Commons, 25 March 2002)
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