[BITList] More political hands on our money.

[John Feltham]

London Daily Telegraph.



Pensioners lose hundreds of millions in benefit rule change

By Christopher Hope, Andrew Pierce and Rosie Murray-West

Last Updated: 7:33pm BST 21/09/2008


Pensioners are going to miss out on hundreds of millions of pounds of  
benefits owed to them under a government move to cut the time they get  
to claim tax credits.

In a move that could trigger another backbench revolt against Gordon  
Brown, ministers have abolished the 12-month period in which the  
pensioners can claim backdated pension tax credits and imposed a new  
limit of three months.

The rule change, which comes in on October 6, will affect 110,000 of  
some of the poorest pensioners many of whom are struggling with  
soaring fuel and food bills.

As a result, ministers believe they will be able to save hundreds of  
millions of pounds because claimants will not apply for payments in  
time.

A Parliamentary answer to Lynne Featherstone MP shows the cut will  
save £240million between now and 2010, and a further £285million will  
be saved between 2015 and 2050.

The Labour MP Frank Field likened next month's benefits cut to the row  
to the controversy over the abolition the 10p tax rate this year.  
"This will penalise the poorest and most vulnerable groups. It is  
cruel," he said.

Miss Featherstone, the Liberal Democrats' equalities spokesman, said:  
"Hot on the heels of the 10p tax fiasco I am sure pensioners are  
starting to feel like this government has a vendetta against them.

"These figures show the Treasury is in for a real windfall at the  
expense of some of the poorest people in the country.

"There are many reasons why older people might delay claiming pension  
credits, but one of them isn't that they are off living the high life.

"When you're on a fixed income struggling with bumper rises in food  
and energy, a backdated cheque could make all the difference. Labour's  
raid on pensioners simply could not come at a worse time."

The scheme guarantees that everyone has an income of at least £124.05  
a week for single people and £189.35 a week for couples.

Under the change, pensioners have until October 6 to put in a claim  
for backdated pension credit. After this deadline, they will only  
receive three months' worth of backdated payments for their credit and  
the associated council tax benefit and housing benefit.

Age Concern recently revealed six in 10 pensioners were put off  
claiming the money they need because the system is so complicated and  
intrusive. Research found that people were deterred by complex forms  
and the humiliation of undergoing a means test.

The pension credit forms ask for details on different types of savings  
held by the applicant, as well as other financial and personal  
questions.

Gordon Lishman, director general of Age Concern, said: "The Government  
is dealing yet another blow to the poorest pensioners. The millions of  
pounds the Government will save is money that should be in older  
people's pockets."

The Department for Work & Pensions said that some of the cash would  
help to pay for new plans to automate payments for people claiming  
housing benefit and council tax benefit between now and 2010. But DWP  
figures show that these costs are covered by cuts to other backdated  
benefits.

A spokesman said the move would help "around 50,000 pensioners over  
the next few years". He added: "It is not about saving money. In fact,  
the money from reducing backdating will be used to make these  
improvements for pensioners and to increase take-up of benefits.

"Over the long term the package results in extra expenditure for  
pensioners, rising to £250million per year by 2050 (2007/08 price  
terms)."


ooroo

If you don't hear the knock of opportunity - build a door.

Anon.