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Burstow introduces bill to protect frail and thrifty pensioners
March 24, 2009 6:22 PM
Paul Burstow at a protest earlier this month about the Government's poor treament of pensioners
Paul Burstow, MP for Sutton and Cheam and campaigner for older people's rights, yesterday secured a first reading for a Bill to end two injustices in the benefit system that hurt frail and thrifty pensioners.
Mr Burstow's Bill places a legal duty on the Government review current benefit rules which assess some pensioners eligibility for pension credit by assuming they are earning up to 8% on their savings. This is significantly higher than any interest rate available from a high street bank. Over 500,000 pensioners lose out when their income is over-estimated under the current rules.
The Bill would also turn the spotlight on the amount of money given to pensioners who rely on state funding for their care home places. A quarter of a million pensioners are currently given a mere £21.15 a week to pay for everything above their bed and board; clothes, toiletries, travel, hobbies, gifts.
The Bill is due to have its second reading in June.
Speaking after introducing his Bill, Mr Burstow said:
'This Government is letting down frail and thrifty pensioners. Thrifty pensioners have their savings used against them. Absurd rules assume that people with over £6,000 of savings are earning a return of 8%. As a result pensioners are being forced to run down their life savings as the Government over-estimate their income.
"Frail pensioners in care homes have to hand the pension, their savings, everything over to the Council to fund their care, all they are left with is a miserly £21.15 a week. Labour Ministers say they are serious about dignity in care but then turn a deaf ear to the plight of the poorest people in care.
'Out of date rules and such a measly living allowance are condemning frail and thrifty older people to poverty and is robbing them of the independence of a decent income and benefits they are entitled to.'
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