LETTER: Labour lets down pensioners in pre-budget

12.00.00am GMT Mon 6th Dec 2004

Dear Sir/Madam

Last week in his pre-budget report the Chancellor, Gordon Brown, attempted to disguise a £50 cut in retirement incomes to the over-70s.

Gordon Brown told the House of Commons that incomes would rise following a boost to the winter fuel payment next year from £200 to £250. HE OMITTED to mention that he was scrapping a £100 council tax allowance, which has boosted the incomes this year of pensioners over 70. This will leave older pensioners £50 worse off next year.

In contrast the Liberal Democrats would put £25 more on the pension every week at 75 and take a million pensioners off means-testing. Our pre-election manifesto also includes free personal care when you need it so that no one is forced to sell their home to pay for care.

We propose a citizen's pension (CP) based on a simple residency requirement rather than National Insurance Contributions. This would be set at £105.45 a week for single pensioners (a £25 increase) and £160.95 for couples (a £33 increase). The CP would be linked to increases in average earnings to ensure that its value was retained. In a first Liberal Democrat parliament the CP would be paid initially to pensioners aged 75+, as these are frequently the poorest.

Yours sincerely

Andrew Dakers - Liberal Democrat Prospective Parliamentary Candidate for Brentford & Isleworth

Satnam Kaur Khalsa - Liberal Democrat Prospective Parliamentary Candidate for Feltham & Heston