Financial Packages Must Filter Through Says Age Concern
Thursday, November 20th, 2008
It is vital that governmental plans to lift the UK economy out of a recession provide adequate support for older generations, Age Concern has warned.targ
According to the charity, the government is at risk of plunging a generation of people into financial difficulty unless arrangements are made to protect them in the upcoming pre-Budget report. The group warned that because older people often face higher inflation costs and can struggle to meet the costs of keeping homes warm during the winter, there is a danger that they will be particularly hard hit if the UK enters into a recession.
It noted that while provisions such as lowering income tax will likely be welcomed by many families and workers, it will have very little impact on those of pensionable age. As such, Age Concern warned that specifically targeted measures were needed to support older people through this difficult period.
Among the recommendations made was the introduction of a higher winter fuel payment subsidy, in addition to increases in the basic state pension and pension credits. It noted that such a move was necessary to reflect the real rates of inflation that old people are commonly exposed too. By enforcing such measures, it is possible that older people could find the strain on their finances is reduced, allowing them to meet other costs such as food bills or outstanding personal loan and credit card payments more easily.
In the meantime, Age Concern warned that half of all pensioners are cutting back on essential items such as food and clothing in an effort to make ends meet, while some ten per cent have been forced into debt as the credit crisis and soaring inflation have become an indomitable burden.
Commenting on the situation, Gordon Lishman, director general of the organisation, urged: “Millions of older people will be looking to the government to deliver a pre-Budget report that lives up to its rhetoric on fairness and eases their financial pressure and uncertainty. Alongside tax cuts, which are unlikely to help the majority of pensioners, the chancellor must also announce specific measures to help pensioners such as increases in the winter fuel payment and pension credit that truly reflect the high cost of living. The government must ensure that its fiscal stimulus package does not ignore the needs of millions of older people who are quickly running out of ways to pay their bills.”
Meanwhile, Age Concern also called for improved protection for those who are nearing the end of their working life after research indicated that older employees are likely to bear the brunt of the majority of redundancies as the country heads into a recession. In such a scenario, it could be possible that more people are caught out by the pensions pinch. According to the Life Trust Foundation, increased life expectancy presents a growing risk that millions of older workers will be unable to save for their retirement. The group warned that the current economic climate has exacerbated this problem as people have begun saving less as their incomes are absorbed by food and fuel bills, in addition to other commitments such as mortgages, personal loans and credit card repayments.
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