

09 October 2007
Help the Aged have dismissed the Chancellor of the Exchequer's pre-budget report issued today (9 October), saying that it fails to take account of the growing needs of an ageing population and to tackle the fact that a fifth of pensioners currently live in poverty.
Help the Aged spokesperson Mervyn Kohler comments: "The Comprehensive Spending Review was launched brightly with the promise, as one of its five cross-cutting themes, that it would reflect the challenges of an ageing population. Little seems to have survived of that spark of light.
"The evidence of failure in our social care system has grown remorselessly since the spending review commenced, but in the three year programme announced today, not enough has promised to ensure decent care in older age for the poorest pensioners. On first glance, the settlement offered to local authorities will simply not be enough to ensure the gaps in social care funding can be properly filled.
"The announcement of further increases in NHS funding are to be welcomed: it is important that this should take account of the needs of older people who make up such a large proportion of health service patients. Help the Aged will be watching closely to ensure that the NHS improves the treatment and services older people receive. For example, the increased spending on health research must be used to ensure that the illnesses of older age receive the attention they deserve.
"Funding of Government priorities in this Comprehensive Spending Review and Pre-Budget Report is tight. There simply isn't enough in the Chancellor's statement to take account of the growing needs of an ageing population nor to tackle the fact that a fifth of pensioners currently live in poverty.
"The predicted increase in Pension Credit merely reinforces the regrettable reliance on means-tested benefits which shapes the lives of too many older people."
Age Concern’s Director General, Gordon Lishman, said: “Darling has dealt an ace card on the critical issue of care but a poor hand to many of the most disadvantaged pensioners who will see nothing new to help them.”
On social care
“Age Concern England welcomes the Government’s commitment to address the growing crisis in social care. We are delighted the Government has listened to Age Concern and others - recognising the need for public consultation on this issue followed by a Green Paper.
“Increasing investment by £190 million to £1.5 billion by 2010-11 will allow the current system to creak on in the short term. The national roll-out of the trial Partnership for Older People’s Projects will help many older people stay independent for longer.
“Fundamental reform and significant further investment over the next decade is clearly required but this is a vital first step in the right direction.”
On Inheritance Tax
“Changes to Inheritance Tax (IHT) will be welcomed by those who have considerable assets to pass on to their heirs but will not affect the majority of older people. The average level of assets for the over 60s is well below the current threshold of £300,000, with around a third of older people not even in the position to own their own home1.”
On pensions and Pension Credit
“It’s good news that the Pension Credit will continue to rise in line with earnings and really promising that the government has announced a Public Service Agreement (PSA) target around tackling poverty. But it is extremely disappointing that the Government has yet again failed to bring forward the date for re-linking the state pension to earnings. Without quick intervention, the real value of the basic state pension will continue to fall and today’s pensioners will fail to benefit from any of the good measures proposed in the Pensions Bill.”
On Council Tax
“Many pensioners will be very disappointed that there was no announcement on additional help with their council tax bills. The reassurance that local authorities will keep council tax rises to below 5% next year will be of little comfort to pensioners struggling to live on stingy state pension linked to inflation. The Government should replace Council Tax with a fairer system linked to people’s ability to pay, and for it to deliver a higher Basic State Pension so pensioners can afford to pay their bills.”
On financial inclusion
“The modest increase in the Financial Inclusion Fund is welcome but the challenge now is to ensure that financial inclusion initiatives reach all those affected, including older people.”
On fuel bills
“The absence of any announcement to help with the cost of energy bills will be a huge disappointment to many older people, who are more likely than any other age group to be affected by fuel poverty. Pensioners, particularly those living on a low, fixed income, often bear the brunt of high energy costs. In the short term, the Government should increase the Winter Fuel Payment by at least £100 to help older people pay their bills. But it must also ensure that decent housing, energy efficiency measures and a higher basic state pension are in place to help older people stay warm.”
Another campaigning charity, Counsel and Care, has welcomed the report as a ‘radical rethink’ of social care for older people. They say that the proposed Green Paper offers a once in a lifetime opportunity to develop a lasting settlement, providing a fair and affordable sharing of the cost of care for our ageing population.
Stephen Burke, Chief Executive of Counsel and Care, said: “We welcome the Government’s commitment to tackling the widening care gap in this country. The Government has recognised that care in Britain is not fit for the future. Older people want and deserve much better.
“Our ageing population want better care services that really meet their individual needs, giving them choice and control. More and more older people want to live in their own home but find it increasingly difficult to get the help they need. The increasing number of older people with dementia presents new care challenges for the future. We need fairer care which is consistent and clear about what older people are entitled to wherever they live in the country."
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