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17 September 2002

NIGEL DODDS PROPOSES BILL TO BOOST PENSIONS

A Bill, which will bring benefits of up to £1,000 a year to many thousands of pensioners in Northern Ireland, was introduced at the Assembly today by the Minister for Social Development, Nigel Dodds MLA MP.

Speaking at the Second Stage of the State Pension Credit Bill, the Minister said that its proposals would mark the end of a fundamental unfairness in the social security system. He said:

"Every one of us has met pensioners living on modest incomes – and who had often struggled to put aside money for their retirement – and who feel they’ve been let down. They feel they are little or no better off than people who have saved nothing.

"This Bill will provide extra help to around half of all pensioners. Around 120,000 people stand to gain an average of £400 a year with some gaining up to £1,000 a year.

"With the Pension Credit, the poorest third of pensioners will gain on average an extra £8.20 a week. This will do much to alleviate pensioner poverty and will build on existing measures which have increased the incomes of the poorest pensioners by at least £15 a week over and above inflation.

NOTES TO EDITORS:

  1. The Pension Credit works in two ways. First, it replaces the Minimum Income Guarantee to provide a floor below which pensioner incomes should not fall. It will bring pensioners' entitlement up to a guaranteed minimum of £100 a week in 2003 (or £154 for couples). The Bill also provides for a higher guarantee for carers and for pensioners with severe disabilities.

  2. Second, the Pension Credit will provide an additional top-up to reward pensioners’ aged 65 or over who have saved for their retirement. The Bill will ensure that these pensioners, who have a modest occupational or personal pension, or modest savings in the bank will get more as a result of their thrift.

  3. Pensioners will generally qualify if their weekly incomes are under £135 for single pensioners or (£200 for couples). These are amongst the least well off and vulnerable pensioners.

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