Getting more money to poorer pensioners

The Sun newspaper have started a good campaign today.  They rightly ask why it is that pensioner benefits, such as the cold weather payment, goes to rich pensioners - even those with incomes of £100,000 a year?  Why is it too, that these kind of benefits go to wealthier pensioners living overseas  - such as those who have bought villas in countries like Spain and France?

Clearly this is absurd.  Pensioner benefits for the rich are economically unfeasible (the country can't afford it), unfair (because the burden falls on lower tax payers), and morally wrong (as it means that poorer pensioners don't get enough).

It cannot be right that taxpayers' money - most of it taken from lower earners (who make up the majority), is spent on benefits and handed to those who have plenty of wealth.  It is wrong that there are too many pensioners in poverty, who would welcome more in welfare support.  Moreover, a country paying out £120 million a day - just to pay off the interest of the national debt, can't afford to give handouts to the rich in this way.

The welfare state was never designed to be universal.  It was established to help those in need.  Reforming pensioner benefits, would mean more money to poorest pensioners and some savings to hard pressed taxpayers.  Fair and socially just.

P.P.S.  There are two bear traps to avoid: ensuring that our opponents do not misrepresent the Government as taking away benefits from all pensioners,and;  making certain that any means testing to deal with this problem, does not become a bureaucratic minefield - costing  more than the savings themselves.

P.S.  I was on Radio 4 discussing this, earlier.  You can read the transcript here.



by Robert Halfon - Working Hard for Harlow.

A fair deal for Pensioners

Harlow pensioners will benefit from this Budget. Gordon Brown put up pensions by a miserly 75p. But under a Conservative-led Government, the basic state pension is rising by £5.30 a week. This is more money in the pocket of every single Harlow pensioner, to help with rising energy costs, and the rocketing cost of petrol and diesel.

The facts for Harlow pensioners are as follows:

1) Harlow pensioners have just seen the biggest EVER cash rise in the state pension this April, the highest rise since 1948 (£5.30 extra a week, and £8.50 extra for couples).

2) A Conservative-led Government has restored the link between pensions and earnings: something that Labour failed to do in 13 years.

3) There is a now a "triple lock" on the basic state pension, so it will rise by the highest of prices, earnings, or 2.5%. This will ensure that a typical Harlow pensioner will now get an EXTRA £15,000 in extra state pension over their lifetime, compared with Labour's spending plans at the last election. This avoids the problems that Harlow has seen in the past, with outrages like the derisory 75p increase under Gordon Brown.

4) On top of this, key pensioner benefits have been protected, such as Winter Fuel Payments, Cold Weather payments, free prescriptions and eye tests, free bus travel, and free TV licences for older pensioners.

5) The tax-free allowance for every pensioner is RISING next year, not falling. The simplification in tax allowances is being presented as a "granny tax". But the truth is that at present, an ordinary pensioner's tax free allowance is £9,940.

NEXT YEAR a pensioner's tax free allowance will INCREASE to £10,500. Every single pensioner in Harlow will be better off. It will be frozen under current plans the year after - but this will be compensated for by generous rises in the Basic State Pension.

6) Harlow Pensioners are better off, thanks to a freeze in Council Tax. Harlow Conservatives have frozen the Council Tax now for a record three years in a row. This had been worth around £70 each year, to an average band-D home. This policy was opposed by the Labour Party.

7) The Cold Weather Payment is now for life - not just for elections. Although Gordon Brown created the Cold Weather Payment, it was a one-off measure for the election year in 2010. But this Conservative-led Government has made it PERMANENT, and tripled the amount from £8.50 to £25. This helped to keep Harlow homes warmer this February and March, through the cold freeze.

I am proud of the fact that the Government has honoured David Cameron’s pledge to enhance the state pension, protect the Winter Fuel Allowance and other pensioner benefits that people depend on.

On the inflation issue, the basic state pension is now rising FASTER than the current rate of inflation, faster than wages, and faster than unemployment benefit too.

Finally, there are also plans that the state pension could now be increased to about £140 a week under plans to ensure everybody in Harlow has a decent retirement income. It is something that I have campaigned for, and I am urging the Government to make this happen. It would benefit everybody going into retirement, and would be a particular boost for Harlow women, many of whom lose out on the state pension after taking time out of work - and national insurance contributions - to bring up children.

FACTS: The truth about this Budget and Pensioners

There has been a lot of misinformation about the Budget, from people who want to paint a gloomy picture. But in reality, this was a Budget for the hardworking people of Harlow, for jobs, and for the vulnerable. Pensioners will be better off.

Yesterday, it was announced:

- We will see the biggest EVER rise in the state pension (£5 extra a week, from this April).

- On top of this, key pensioner benefits have been protected, such as Winter Fuel Payments, free prescriptions and eye tests, free bus travel, and free TV licences for older pensioners.

- Allowances will be simplified, but nobody will pay more tax.

- There are no cash losers as a result. And everyone is still better off as a result of the increase in the basic state pension.

- Even after the changes, half of pensioners will not pay tax next year.

- Over 5 million of the poorest pensioners are unaffected, including thousands in Harlow.

- Pensioners will also benefit from the Government's funding for local authorities to freeze their council tax for a second year. (In Harlow, Council Tax has now been frozen for a record three years in a row.)

by Robert Halfon MP - Working Hard for Harlow.

Yesterday I spoke to BBC Essex, about the latest news on Partridge Care Home, in Harlow.

As I said, the latest report from the Care Quality Commission shows some improvements thanks to hard-working local staff, which need to be acknowledged. But as local MP, this case has been going on for over a year.

There is a residents meeting next week at the home, which I will be attending. I hope sincerely that all the questions will be answered, to address the worries of residents and families.

You can hear the recording above.

by Robert Halfon - www.roberthalfon.blogspot.com

Statement on ITV News: Partridge Court Care Home

Following the tragic deaths at Partridge Court, I recently gave a statement to ITV Anglia News.

This followed on from my earlier statement, calling for Essex County Council to take over the running of the Care Home until residents can be sure that their family members are being looked after properly.

by Robert Halfon - www.roberthalfon.blogspot.com

Essex County Council statement on Partridge Court

Following the tragic deaths of elderly residents at Partridge Court Care Home, Essex County Council have sent me the following statement by Essex County Councillor Ann Naylor, Cabinet Member for Adults, Health and Community Wellbeing:

“We were extremely saddened to hear of the two recent deaths at Partridge Court Care Centre and our thoughts are with the relatives of those concerned.

There are currently two investigations underway, the ongoing police investigation and a safeguarding investigation. Safeguarding our most vulnerable is our absolute priority and as a result we are conducting a multi-agency safeguarding investigation into the care of residents in Partridge Court Care Centre.

Essex County Council initially put intensive support into the home so we could ensure residents security and safety and avoid the need to move clients unnecessarily and against their wishes. We are continuing to work proactively with the home’s staff and the providers Rushcliffe on an action plan of improvement to look to raising standards on the future delivery of care.

The CQC have recently inspected Partridge Care Home and will consider enforcement action if necessary. Essex County Council has a suspension on places and this will be in place until we are happy that improvements to the level of care have been made.

We will continue to monitor the action plan until we are fully satisfied with the quality of care. Conversations have been held with all residents and their families to review individual needs and all care plans have been checked. While the majority of residents and their relatives have expressed a wish to stay at Partridge Care Home those residents who have requested to move are being supported and further discussions will be held with their families to find suitable, alternative accommodation.

We have also provided advocacy support for relatives so they can raise any questions or concerns. Our NHS colleagues have assigned a team of clinicians to work on the site and we are confident that improvements can be made.

There is an ongoing police investigation and until this is concluded we do not know if a criminal offence has occurred. Therefore we are unable to provide further details at this time but will continue to do all we can to work with partners to ensure the highest possible standards of care are implemented and take any necessary action if improvements are not made.” 

by Robert Halfon - www.roberthalfon.blogspot.com

Second Statement on Partridge Court

Following my statement of 16 August, tragically there has been a second death of an elderly resident at Partidge Court.

Given this development, I am now calling for Essex County Council to take emergency measures to take control of the Partridge Care Centre, so that no more lives are at risk.

If anyone has a relative at the Partridge Care Centre and would like me to make representations on their behalf, I can be contacted at halfon4harlow@roberthalfon.com or by ringing 01279 311451.

As I said in my earlier statement:

"For some time now I have been aware of problems there and a few months ago contacted Partridge Court and Essex County Council to express concerns about the treatment of a local resident.

I have been asked by the constituent not to publish their name. However, I have continued to work on their behalf with Essex County Council and the Primary Care Trust, and have asked for a full enquiry into these awful events.

Following talks with Essex County Council this has now been agreed.

My thoughts are with the family at this time."

by Robert Halfon - www.roberthalfon.blogspot.com

Support for pensioners

I thought you might like to see this response I recently wrote, in a response to a query from the Harlow Pensioners Action Group.

QUESTION: At a recent meeting with the National Pensioners' Convention,Minister of State for Pensions Steve Webb made the following statement:

"The National Insurance fund is an accounting tool rather than an actual fund. The Government borrows from the fund and therefore if that money was used to pay for higher pension, the Government would have to raise that money from elsewhere.

Today's pensioners have paid NI contributions during their entire working lives. The fund was reformed in 1948 and it was NOT a tax - its sole reason was to provide State pensions and benefits.
Even though HM Treasury has stated there is currently a £54bn surplus in the NI fund, the basic state pension is still only £97.65 (rising to £102.15 in April) - a whopping £62.85 short of the Government's official poverty level figure of £165 (October 2010). Why can't our pensions be increased to a reasonable figure?
Even if every pensioner in the land was given a £3,636 bonus there would
still be £14bn in the NI fund - after all, if the bankers can enjoy mammoth bonuses why shouldn't we be afforded the same courtesy?

MY ANSWER:

As you know, National Insurance was originally introduced in 1911, to payfor medical benefits (such as sick leave, and free treatment for tuberculous), and a time-limited unemployment benefit for workers in
industries such as ship-building, that suffered from the extremes of boom and bust.

A key assumption of the original 1911 Fund was an unemployment rate of 4.6%. At the time, unemployment was at 3% and the fund was expected to build a surplus very quickly, to guard against a rainy day.
One hundred years of Government - of all three parties - has seen this original mission expanded to include the Basic State Pension and other programmes, which are mostly to the good. However, Governments have also hijacked the fund for other uses.

As you say, it is now essentially an income tax. Because of this, it would be hugely expensive for the Government to raid the National Insurance Fund for higher pensions.  In order to do this, we would have to drastically cut spending, or drastically raise taxes, to make up the shortfall elsewhere.

I believe in clear and simple taxes: people have a right to know where theirmoney is going. But the system that we have inherited lumps everyone's moneyinto the same pot. What we pay in National Insurance today, goes to pay for public spending today, not our pensions tomorrow.

There has never been a legal connection between what we put in, and what we get out.  In some ways, we have lived a lie with National Insurance. I would support a simpler and more transparent system, with just one rate of income tax --rather than. income tax and National Insurance on top of each other.

This would be much cheaper to administrate, and the savings could be ploughed back into higher pensions.
However, I absolutely agree that the Basic State Pension must increase. Older people, who have worked all their lives for Britain, deserve comfort and dignity. That is why, as you rightly say, in April we will increase the
Basic State Pension by £4.50 to £102.15. Low income pensioners in Harlow will especially benefit, as the majority of Pension Credit recipients will see a £4.75 per week increase in their Guarantee Credit.
Although Gordon Brown created the Cold Weather Payment, it was - dare I say it - a one-off measure for the election year. But this Conservative-led Government has made them permanent, and tripled the amount from £8.50 to £25. This should help to keep Harlow homes warmer this February, if we face another cold freeze.

On top of all this, we are also restoring the link between pensions and earnings. Under this Conservative-led Government, the Basic State Pension will always increase by the highest of prices, earnings, or 2.5 per cent.
Some people have asked why not just link pensions to consumer price inflation?

But this "triple guarantee" ensures that a typical pensioner will actually get an additional £15,000 in extra state pension, over and above what consumer price inflation would give them. This avoids the problem of what we have seen in the past, with outrages like the derisory 75p increase.

I am proud of the fact that the Government has honoured David Cameron's pledge to enhance the state pension, protect the Winter Fuel Allowance and other pensioner benefits that people depend on.

Finally, the state pension could be increased to about £140 a week under Government plans to ensure everybody has a decent retirement income. If we scrapped complicated and expensive means-testing, we could save enough money from reduced bureaucracy to pay for £140-a-week. This would benefit everybody in retirement, and would be a particular boost for women, many of whom lose out on the state pension after taking time out of work - and national insurance contributions - to bring up children.

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A pledge to pensioners

I have written before about how Labour's very raison d'etre is to campaign on the politics of fear. By frightening vulnerable groups such as pensioners with mythical "Tory cuts", Gordon Brown hopes to steal a last minute election victory. Yet, as I wrote yesterday, it is this very Labour Government that has publicly stated its intention to make more savage cuts than happened even during Mrs Thatcher's time as Prime Minister.

For this reason, I am pleased that David Cameron has tackled the politics of fear head-on and announced a number of pledges to pensioners. This is of real importance than because we have more pensioners living in poverty in the UK - than anywhere in Western Europe.

A Conservative Government will keep the free bus pass, will maintain the winter fuel payment and the pension credit.

Moreover, Conservatives will restore the earnings link to pensions and increase the value of the basic state pension.

For those with personal pensions, there will be an end to the rule forcing pensioners to get a compulsory annuity. Assistance will also be given to help people with long term care, so they don't have to sell their homes.

This is good news for pensioners and bad news for the Brownite fear-mongers.

More details are on the Conservative Home website, HERE.

Desperate MPs say desperate things

It is of no surprise to me - sadly - that the local MP has again taken to promoting the fear factor in the run-up to Christmas. In a Press Release he put out recently, he implied we sought to cut the fuel allowance to pensioners.

Mr Rammell claimed that the Conservatives oppose the extra Winter Fuel Payments announced in this year's budget of £100 for pensioners aged over 80 and £50 for those aged over 60s.

But the MPs scaremongering is unjustified.

The facts are these:

The next Conservative Government will re-link the state pension to earnings and we have made clear that we will keep the Winter Fuel Allowance that is valued by so many in Harlow.

Government figures show fuel poverty is up 64 per cent on what it was in 2007.

Pensioners and other families are more vulnerable to high fuel bills during this cold snap than they have been for years.

Conservatives have a comprehensive plan to reduce fuel poverty. With high home energy prices, Harlow's poorest people face their toughest winter for years. Without immediate help, many will face going into debt to stay warm.

Conservatives will introduce a new entitlement through its Green Deal for every home to be fitted immediately with up to £6,500 of approved energy efficiency improvements, with the costs being repaid through the very much greater savings made, thus delivering immediate reductions in energy bills.

We will require energy companies to provide information on energy bills that shows customers clearly whether they are on the cheapest tariff offered by that company - and if they are not, shows them exactly how much they would save if they switched to the cheapest tariff, and how they can do so.

We will expand the role of the Post Office Card Account (basic cash accounts run by the DWP for receipt of welfare, pension and tax credit deposits), so it could be used by pensioners to make direct debit payments on utility bills. This could cut the energy bills of up to four million POCA holders by up to £100 a year.

And we will require complete transparency in the energy market so that when energy prices fall in the world market they fall for customers too.

P.S. The latest figures show, that under this Government, in 2006 (last figures available) there were 2.567 households in fuel poverty in Harlow.

P.P.S. Councillor Tony Hall, Chairman of the Council Environment Committee, reminds me:

"Under the Conservatives Harlow Council is working to combat fuel poverty by insulating all Council homes and offering through the Herts&Essex Energy Partnership (HEEP) free or discounted insulation (loft and wall cavity) to home owners. The charge for those who do not qualify for the free service is £99 for each. Search under HEEP on the internet."

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Save our Cheques

I find it incredible that 'the authorities' have taken it upon themselves to announce the phasing out of cheques.

It was recently announced that cheque books are to be phased out by October 2018 . This decision has been made by the so-called Payments Council, without any democratic recourse whatsoever, to 'we' the consumer.

There is little doubt these proposals, if implemented will hit pensioners and local small businesses particularly badly.

As Steve Alambritis, the Head of the Federation of Small Businesses has stated:

"cheques, which were introduced in 1659, were a mark of trust and confidence and are particularly valued by older people and small businesses....

"This is driven by the big banks who will save £1 billion".

While many people rely on credit and debit cards and online banking to pay their bills, there are still millions of people - and thousands in Harlow constituency - who would be lost without their cheque book. And that includes myself.

What are pensioners expected to do if this goes ahead? The Government has already overseen the closure of numerous post offices in rural communities so there are now far fewer places where pensioners can go to close to their homes to withdraw their money.

Many people do not do internet banking and so need cheques to pay their bills. This decision could force some individuals to withdraw cash and keep it in a safe place at home, which could then spark an increase in opportunist thieves who will target the elderly who they think have money stashed away. Small businesses too rely on cheques to pay some of their suppliers.

The final word goes to Harlow Councillor Simon Carter, a former bank manager for many years:

"What about the impact on charities and churches that rely on occasional and spontaneous donations by cheque in response to appeals and raffles tickets? And then there are birthday and Christmas presents from grandparents to grand children? The list is endless. Damned banks – wouldn't have happened in my day!"

I couldn't agree more.

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We need to protect pensioners from Gordon Brown's plans to cut benefits

It is very worrying that some 3,000 people in Harlow and the surrounding villages could lose their disability benefits. I am strongly opposing Gordon Brown's plans to scrap disability benefits for the elderly in Harlow.

The small print of Labour's plans to create a National Care Service reveals they will scrap Attendance Allowance and Disability Living Allowance for pensioners to pay for it.

An average £3,400 a year will be snatched away from 2.4 million pensioners - equivalent to a quarter of the average pensioner's income. In the Harlow constituency, which includes Hastingwood, Nazeing, Roydon and Sheering, this would affect 3,000 pensioners – 2.030 who receive Attendance Allowance, worth an average of £60 a week, and 970 who receive Disability Living Allowance, worth an average of £75 a week.

Attendance Allowance and Disability Living Allowance are based on need; they are not means tested and are intended to cover the extra costs arising from the impact the disability has on the life of the disabled person. The key feature of these benefits is that they can be spent by disabled people how they wish, without restrictions, to best support their individual care needs.

I find it astonishing that Gordon Brown has chosen to penalise one of the most vulnerable groups in our society for the sake of another of his eye-catching announcements.

As with every Labour initiative, someone has to pay and, as with many of them, it is once again those who are least able to afford it who are hit by Brown.

These benefits provide vital support for disabled pensioners, giving them the chance to lead an independent life with the freedom to tailor their care to their needs.

Of course, we need to do more to help people with their care costs, but it is completely wrong to do so at the expense of disabled pensioners. Conservatives will protect Harlow's pensioners and fight against Gordon Brown's plan to scrap benefits for the disabled.

Given what is planned, I am glad that last Thursday Shadow Work and Pensions Secretary Theresa May and Shadow Health Secretary Andrew Lansley launched the Conservatives' campaign to Protect Britain's Pensioners against the Labour's Government's proposals to integrate Attendance Allowance (which is only paid to the over-65s) and Disability Living Allowance for the over 65s into a future social care system.

The Conservatives want to do more to help people with their care costs, but we strongly believe that it is wrong to do this at the expense of disabled pensioners.

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Cutting taxes for Savers

I mentioned in my blog posting last night that when Shadow Cabinet Minister Theresa Villiers MP, visits Harlow this morning, she will also be making a major announcement on Savings on behalf of David Cameron and the Conservative Shadow Cabinet. If you click on the weblink below, it will give you further details:

Conservative Press Release on Savings

This is good news. It seems so wrong that those who saved all their lives are now seeing their investment vanishing - because of Gordon Brown's mismanagement of the economy and drowning the country in debt.