The Labour Party

 

What is Labour doing for… older people?

Labour believes that all older people should have a fulfilling and active life with dignity and security in retirement. That’s why we’re ensuring that older people share in the country’s rising prosperity and have the opportunity to use their knowledge, experience and talents – through work, volunteering or involvement in community projects – to the benefit of themselves and their communities.

John Hutton MP

Key points
• The Pension Credit has enabled us to cut absolute pensioner poverty by two-thirds and, for the first time, rewards those who have saved for retirement.
• We’ve introduced a raft of measures to benefit all pensioners and ensure their security in retirement including the Winter Fuel Payment and free TV licences for the over-75s.
• We’re working to ensure pension promises are honoured through the new Pension Protection Fund.
• Labour’s record investment in public services means older people, who are often regular users of the health service, are seeing the impact through improved facilities and provision, such as free eye tests.

Our approach
Labour wants all pensioners to have a decent and secure income in retirement. We are committed to ensuring pensioners share in the country’s rising prosperity.

Our first priority was to boost in the incomes of the poorest pensioners. By April 2005, they will be guaranteed £109.45 per week (£167.05 for couples) through the Pension Credit. The next step is to address those pensioners who’ve managed to save something for their retirement but who – until now – have found that it is knocked straight off their benefit entitlement, leaving them no better off than those who have not saved at all. The Pension Credit also rewards pensioners aged 65 or over who have saved for their retirement, ending the unfair, absolute penalty on savings that removed incentives to save.

Occupational pensions have been a strength of the British system and we are ensuring that continues. Where pensions have been promised by employers, we are making sure the promise is honoured as well as making it easier for firms to run schemes.

What has been achieved:
• Dignity in retirement for every pensioner: In April 2005, the basic state pension will rise to £82.05 for singles and £131.20 for couples (up from £62.45 and £99.80 when Labour came to power). The Winter Fuel Payment is paid at £200 and those over 80 receive an extra £100. We have introduced free TV licenses for over 75s, free eye tests and reduced the Tories’ VAT on fuel from 8 per cent to 5 per cent.
• Help for the poorest pensioners and those who have saved: 3.2 million pensioners are seeing their household incomes boosted by on average £40 a week through the Pension Credit. As a result of our reforms, compared to 1997 pensioner households are on average £1,350 a year better off in real terms, with the poorest third of pensioner households £1,750 a year better off.
• A modern pension service: The Pension Service is a new organisation dedicated to the needs of pensioners. It will pay the basic state pension and the new Pension Credit and will have local staff on the ground helping and explaining services to pensioners.
• Older people and employment: The New Deal 50+ is helping older people who want to work find a job paying a decent wage – so far it has helped over 100,000 people find work. We are also outlawing discrimination in employment and vocational training on the grounds of age.

What we’re committed to:
• Strengthening security in retirement: We are introducing the Pension Protection Fund, supported by a Pensions Regulator, to end the scandal of workers being denied a pension they have built up. It will step in and pay out pensions when employers go bust, guaranteeing 100 per cent for pensioners and 90 per cent for working-age members. We’re also introducing a £400 million financial assistance package to help workers who’ve already lost out.
• More opportunity and choice to work longer: Labour plans to increase the choices and opportunities for individuals to stay in work by introducing more generous options for deferring the State Pension. For example, a typical person who delays their State Pension for five years could receive a payment of lump sum of as much as £30,000 or a 50 per cent increase in their weekly pension for life.
• More community-based services: Over the next three years we will recruit 3,000 new community matrons offering NHS patients tailor-made services suited to their individual needs – benefiting people with long-term medical conditions such as asthma, arthritis or diabetes. And a new two-year £80 million prevention fund will enable councils to install smart alarm technology in the houses of vulnerable older people, helping to keep up to 160,000 older people healthy, safe and independent in their own homes.

Further information
• Call 0800 99 1234 for information on applying for the Pension Credit or visit http://www.thepensionservice.gov.uk/pensioncredit
• www.dwp.gov.uk - Further information on pension policies including key speeches by Ministers and policy documents
• www.thepensionservice.gov.uk - Detailed information for pensioners about everything they are entitled to
• www.pensionguide.gov.uk - Detailed information about pensions

Devolution statement
Some issues affecting older people are devolved matters for Scotland and Wales, some are UK-wide issues reserved for Westminster.

Editors Note. This statement was issues in March 2005

 

http://www.labour.org.uk/

 

 

 

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