British pensioners 'poorer' than Polish pensioners

Tuesday, 28 July 2009 10:53

More British pensioners are now at risk of poverty than there counterparts in all but four other EU countries.

Across the European Union 19 per cent of people over 65 were deemed to be at risk of poverty, or having disposable income below 60 per cent of the national average.

In the UK, 30 per cent of over 65s were at risk of poverty.

This compares with just five per cent in the Czech Republic, six per cent in Hungary, eight per cent in Poland and ten per cent in the Netherlands.

Pensioners in the UK experience the biggest drop in income when they retire, with average incomes reduced to 30 per cent of their last salary.

Age Concern and Help the Aged are now calling on the government to take on pensioner poverty - which has been rising steadily even before the recession.

Latest figures from the Department for Work & Pensioners (DWP) show two million UK pensioners were living in poverty in 2007/08.

Michelle Mitchell, charity director for Age Concern and Help the Aged, said: "Even before the recession set in, many older people weren't keeping up with the pace at which the general wealth of the nation has increased over the past years.

"This means they risk being increasingly excluded from community life.

"In a country where the richest have incomes five times higher than the poorest, older people are disproportionately bearing the burden of this inequality."

She added this government, and the next, need to find a more effective benefits systems meet the existing commitment to reform the pension system by 2012.

Scott Byrom, utilities manager at moneysupermarket.com, said the figures showed older people are increasingly made to feel like second class citizens in this country.

"The level of poverty many face is unacceptable," he said.

He went on to explained rising energy bills have been a major influence in placing older people at risk of poverty.

"Despite price cuts by the big six energy providers this year average annual utility bills are still topping £1,000. Action needs to be taken now to prevent the number of people in fuel poverty escalating," Mr Byrom said.

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