Money
Pensions
Chancellor's raw deal for pensioners
Britain's most vulnerable pensioners have been dealt a poor hand in this year's pre-Budget report with the Chancellor failing to address many areas of concern, writes Holly Thomas
Alistair Darling announced a number of measures promising to improve the lives of elderly people on Tuesday.
But buried in the small print of the pre-Budget report, Darling listed plans to raid UK pensions. He is to to claw back £400 million a year from the pensions system to fund higher spending and tax cuts.
To do this, the Chancellor is hurrying forward a cap on the value of the new state second pension, or S2P, formerly the State Earnings-Related Pension (Serps) scheme. The Conservatives branded the move a "new stealth tax on retirement".
Experts say other tweaks to policy and budgets means more pensioners having to make cutbacks on basics such as food and heating, forcing many out of their own homes.
Darling revealed the social care budget - which helps councils pay for home help, meals on wheels and other services which let older people stay in their own homes - would increase by £190 million to £1.5 billion by 2010 /11. Charities said this would allow the system to "creak on" but predicted these funds will not go far enough to meet the demands of an ageing population.
The Government has promised a "radical rethink" of social care. Currently, the so called "postcode lottery" of social care means thousands of people struggling without help, relying on family, or paying growing bills.
The Chancellor failed to offer any help to pensioners struggling to pay council tax. It was hoped he would restore a one-off £200 rebate given in the run-up to the 2005 general election.
This marks a blow for homeowners told this week, in a separate report, that they face an increase in council tax of £360 a year.
Darling also failed to offer any extra help to older people struggling to pay energy bills. With winter on its way and experts predicting harsh temperatures to come, elderly people could be forced to switch their heating off.
The over-60s currently receive just £200 winter fuel payments, increasing to £300 for households with someone aged 80 or over.
While the Pension Credit will continue to rise in line with earnings, the Government failed to bring forward the date for re-linking the state pension to earnings.
However, most will welcome the additional £200 million of Treasury money that will ensure that every pensioner or disabled person will get off-peak national bus travel.
