Lib Dems attack pension credit “lottery”
The cost of administering individual pension credits is greater than the cash awards 65,000 pensioners receive, according to the Liberal Democrats.
They argue that the pension credit should be scrapped and money ploughed into increasing the basic state pension.
Steve Webb, Lib Dem pensions spokesman, said: “Pensioners deserve a decent income as a right. They should not have to jump through complex and expensive hoops to gain a few extra pounds a week.”
“The Government is spending hundreds of million of pounds on call centres, advertising and form filling when the money should be spent on pensions.
“Pension credit is a lottery. Some people get large amounts, some get pennies and millions miss out all together.”
Using figures obtained from the House of Commons library, the Liberal Democrats estimate that it costs around £4 a week to administer each pension credit, but 65,000 people actually receive less than that a week.
The Government argues that the figures highlighted represent only a tiny proportion of the three million pensioners receiving the credit. They claim that the average weekly payment is around £50.
Many pensioners’ groups, including the National Pensioners Convention are fundamentally at odds with the means-tested basis to the pension credit. They argue that it should be scrapped, and the earnings link to the basic state pension restored.
The Government however argues that means testing allows it to ensure that resources reach the poorest of pensioners, and that a restoration of the earnings link would leave many worse off.
