Budget for the elderly

It seems that the Chancellor has remembered the elderly community in his latest budget promising to keep the Winter Fuel Allowance at last years higher level. This will last for another year and works out at £250 for over 60s and £400 for over-80s.

In addition, despite inflation rates, the basic state pension will rise by at least 2.5 per cent. The limit for savings that are means-tested rises by £4,000.

What this means is that approximately 540,000 Pension Credit claimants will be better off to the tune of around £4 per week. For those claiming Pension Credit, the level of savings they can have goes from £6,000 to £10,000 from December. However, in a comment by The National Pensioners Convention (NPC) the rise in the state pension will only give pensioners an extra weekly amount of £2.40 a week and women pensioners will benefit by only £1.45.

"Mr Darling's proposed 2.5 per cent rise in the state pension next year fails to address the pressures older people face now from the economic crisis," said Dot Gibson, the NPC general secretary.

However, what was welcomed was the recognition made of grandparents of working age who care for their grandchildren as this caring work will count towards their entitlement for the basic state pension from April 2011.

  What's this?