State pension bonus `will not compensate for inflation`

30 December 2008

Pensioners may be left struggling with their personal finances despite measures recently announced by the government which were designed to help them, it has been suggested.

In its Pre-Budget Report, the Government revealed it is to pay a £60 bonus in January to those who rely on the state pension.

However, figures produced by Safe Home Income Plans (SHIP) indicate that such people will have £205.17 eroded from their income in 2008-09.

"The government has offered too little too late to pensioners in this year`s Pre-Budget Report. 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," stated Andrea Rozario, director-general of SHIP.

Recently, Alex Edmans, a long-term care expert for SAGA, said that an increasing number of retirees are having to take debts against their homes in order to get enough money together to fund care.

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Gregory Pennington are founder members of DEMSA (Debt Managers Standards Association).

DEMSA are the first trade body within the finance industry to successfully secure approval for its code of practice under the OFT Consumer Codes Approval Scheme (CCAS).