Lib Dems slam Islington's worst ever Pension Credit figures

3.34.38pm BST (GMT +0100) Wed 15th Sep 2004

The Labour government's flagship 'Pensions Credit' is failing to reach thousands of Islington eligible pensioners according to local Liberal Democrats.

Government figures published last week show the number of new claimants who have signed up to receive Pension Credit has dropped to its lowest ever level since it was introduced in October last year.

Islington's Liberal Democrats have slammed the Pension Credit for being over-complicated to claim and discouraging pensioners from making an application because it is means-tested.

Islington South & Finsbury's Liberal Democrat spokesperson, Bridget Fox, said:

"After seven years of a Labour government, Islington is still one of Britain's most deprived boroughs including thousands of local pensioners.

"Yet Labour still insisted on bringing in this complex new benefit despite knowing that our poorest pensioners either don't know it exists or refuse to claim it because it's means-tested.

"These new figures show that Islington's pensioners are missing out on what they're entitled to. It's likely that many will never receive the extra cash. The only sure fire way of getting extra money to the poorest pensioners is to boost the inadequate state pension."

The Facts

Pension Credit was introduced by the government in October 2003.The Pension Credit guarantees everyone aged 60 and over a weekly income of at least £105.45 and £160.95 in April. It also awards people aged 65 and over for some of the savings and income they have put away for their retirement.The latest take-up figures (July) from the Department for Work and Pensions confirm an increase of 40,000 new pensioners nationally claiming Pension Credit. This is the lowest new take-up rate since the benefit was launched.The Government has admitted that out of approximately 12,000 Islington pensioners eligible for the Pension Credit at least 3,000 will not claim and miss out. The Government's target of 75 per cent of eligible people in receipt of the benefit by 2006 would still leave 3,000 Islington pensioners excluded.A report released by the Department for Work and Pensions last year revealed that half of all pensioners said they did not like asking for extra money, 44% said claiming income-related benefits would affect their pride and just over a quarter believed they were accepting charity.Liberal Democrats in Islington spearheaded a campaign to highlight the new Pension Credit and encourage take-up amongst Islington pensioners. They passed a motion at Council calling on the government to look into how best they could help increase awareness and encourage take up of the Pension Credit; and write to the Pensions Minister urging the Government to undertake a vigorous advertising campaign to raise take-upLiberal Democrat-run Islington council has also advertised the benefit in its residents' newsletter.