Pensioners with a weekly income below £135 are to benefit from the
Government's new pension Credit.
Gordon Brown has pledged that all pensioners will get at least £100 pound a
week under his Minimum Income Guarantee by 2003.
A £23 top-up will be paid to the £77 state pension, though this could have risen by then.
But the Chancellor also wants to help those with low or modest occupational
pensions or savings.
The Pension Credit will give cash payments to single people of up to £13.80 a week and to couples of up to £18.60.
Single pensioners whose savings, state and occupational pension or other
income take their weekly income to just above £100 pounds will benefit most
from the new credit.
This will gradually fall as income rises and be phased out for single
pensioners with an income of £135 a week and £201 for couples.
Social Security Secretary Alistair Darling said: "We inherited a benefit
system that penalises those who have modest occupational pensions or savings
and who find that their thrift denies them help that other receive.
"That is what we are determined to change."
The Government is also scrapping the savings limit, currently £8,000 which stops people claiming the MIG.
The interest on savings, assessed at notional rates, will instead be used to
determine income.
Mr Brown yesterday announced that the basic state pension for a single
person would rise by five pounds a week in April and at least three pounds the
following year. For couples, it will rise by £8 and £4.80 respectively.
letters@ycp.co.uk
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