Pension bonus "derisory"

Saturday, 13 December 2008 12:01

The £60 bonus for pensioners announced by the government in the pre-Budget report is 'derisory' an equity release industry body has claimed.

Safe Home Income Plans (SHIP), the industry group that represents equity release firms, said costs for the average single pensioner have risen over £200, making the £60 bonus to be paid January "seem derisory".

SHIP said the additional £4.55 per week pensioners will get from the state pension from April 2009 will not do much to alleviate the financial difficulties they face.

Andrea Rozario, director general of SHIP, said: "A £60 bonus paid in January barely covers a third of what will have been eroded from their pensions over the tax year by inflation.

"The additional £4.55 a week for single pensioners is almost an insult and much more needs to be done to help the 2.1 million pensioners living in poverty."

SHIP believes pensioners can improve their standard of living by releasing equity from their home and is urging the government to promote this as an alternative.

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