6 December 2004 - £2 billion extra to be spent on pensioners
£2.1 billion extra will be spent on pensioners next year said Secretary of State, Alan Johnson as result of the increase in pensions and other benefits announced for the next financial year. At the heart of the changes is that the poorest pensioners will have their income lifted to a minimum of £109.45 (£167.05 for couples) a week, an increase of nearly 4%.
The basic State Pension will be increased in line with the Retail Price Index and will go up to £82.05 a week for single people and £131.20 a week for couples.
Mr Johnson said:
“We will be spending over £2 billion extra next year on our pensioners. This is money that benefits everyone, providing invaluable support and additional security to people who deserve and need it most.
“Our commitment to tackling pensioner poverty remains absolute. By increasing Pension Credit in line with earnings it means 600,000 fewer pensioners in poverty than uprating in line with prices.”
In his statement to the House of Commons, Mr Johnson also detailed the new higher rate of the state pension for those who choose to take their State Pension later. From next April men over 65 and women over 60 will be able to defer their State Pension and get an increased weekly amount.
Someone with a full basic state pension at the new rate of £82.05 will be able to get a weekly pension of:
- £90.58 if they wait one year
- £99.12 if they wait two years
- £107.65 if they wait three years
- £116.18 if they wait four years
- £124.72 if they wait five years
Mr Johnson said:
“People can still get their basic state pension at 65 but if they want to keep working and take it later they can now get a better deal.”
Notes for editors
- Most contributory and non-contributory benefits will rise by the RPI increase of 3.1%. Most income related benefits will rise by the ROSSI index increase of 1%. The ROSSI index is based on the RPI less housing costs.
- Income Support, income based Jobseekers Allowance, Housing Benefit and Council Tax Benefit are all income related benefits.
- The Pension Credit Application Line is open from 8am to 8pm Monday to Friday on 0800 99 1234. During the Christmas and New Year holiday period it will be open from 8am to 5pm on Christmas Eve, Wednesday 29th December, New Years Eve and Thursday 4th January. Customers with speech or hearing difficulties can contact the textphone service on 0800 169 0133.
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