Why Labour?

In the last few years, the world has faced unprecedented economic challenges. Labour is providing real help for pensioners to support them through these tough times.

In April 2009, we increased the basic State Pension by 5%. Last winter, the Winter Fuel Payment helped over 12.3 million older people with their fuel bills. This winter, on top of the Winter Fuel Payment, households where someone is aged 80 and over are receiving an extra £100 and households where someone is aged 60-79 are receiving an extra £50. In addition, the Cold Weather Payment is again being paid at the higher level of £25 (previously £8.50) to help the most vulnerable pensioners during the cold winter months. All those receiving the Pension Credit are eligible to benefit from the government’s Warm Front scheme which insulates homes.

Labour has always believed in providing dignity in retirement. The challenge now, while still providing for today’s pensioners, will be to encourage and reward saving for all people to ensure greater well-being in later life.  We have already taken action to protect occupational pensions with the Pension Protection Fund. When it is affordable, we will re-link the basic state pension to earnings.

With more people living longer and rightly demanding more independence, we must ensure that everyone who needs it has access to affordable, high-quality, personalised care, with a new National Care Service and, for those with the highest needs, free personal care in the home.

Key achievements:

• 900,000 pensioners have been lifted out of poverty since 1997.
• In 2009/10, we are spending around £13 billion more on pensioners in real terms than during the Tory years.
• On average, pensioner households are £1,500 a year better off in 2009/10 as a result of Labour changes than they would have been if the 1997 system had continued.
• We have brought in the Winter Fuel Allowance, free off-peak bus travel and free swimming for over-60s and free TV licences for over-75s.
• We have given carers of elderly or disabled people the right to request flexible working.
• We have legislated to tackle unfair age discrimination in the workplace.

A future fair for all:

• We are providing help for pensioners now, including:
  
  • Around 3.3 million people are receiving the Pension Credit, which ensures pensioners have a minimum income of at least £130 a week.
  • A Winter Fuel Payment of £400 for over-80s households and £250 to the over-60s.
  • Maintaining the higher rate of Cold Weather Payments this year (£25 instead of £8.50).
  • Helping savers by increasing the threshold of Individual Savings Accounts to over £10,000.
• When it is affordable, we will re-link the basic state pension to earnings.  We aim to do this by 2012 or by the end of the next parliament at the latest.
• Labour’s pension reforms have reduced the number of years needed to qualify for a full basic state pension, recognising the break many people take to bring up children or care for others. As a result, around three quarters of women reaching state pension age in 2010 will be entitled to a full pension compared to around half without the reforms.
• Occupational pensions will be more secure, thanks to the Pension Protection Fund.
• The Warm Front Scheme has assisted 2 million households since June 2000. A Warm Front Grant of up to £3,500 can provide a package of insulation and heating improvements and energy advice for vulnerable households across England. Those on Pension Credit can qualify for Warm Front assistance.