Pensioners To Miss Out On Half A Billion Pounds In Allowances

(Telegraph) – PENSIONERS WILL MISS OUT on half a billion pounds in state support, the Government has admitted.

In his pre-Budget report last month, Alistair Darling, the Chancellor, announced that the basic state pension would be protected from cuts, and would rise by 2.5 per cent in April.

It emerged later that pensions not categorised as “basic,” such as state earnings-related pensions (Serps), would, however, be frozen.

At the time of the PBR, the cost to pensioners of freezing these allowances was estimated at £350 million.

However, in answer to a written Parliamentary question this week, Angela Eagle, the Pensions Minister, confirmed that the most up to date estimate of how much the Government would save by not raising all pensions by 2.5 per cent was now £500 million.

Theresa May, the shadow secretary of state for work and pensions, said: “Yet again Labour have proved themselves to be incapable of being honest with the voters. “Alistair Darling raised pensioners hopes and then dashed them again, to the tune of half a billion pounds.”