The government announced (in the 2004 Pre-Budget Report) that state pension payments would rise from April 2005 in line with inflation (3.1 per cent) - from 79.60 to 82.05 a week for a single pensioner, and from 127.25 to 131.20 a week for couples. The means-tested pension credit would rise in line with earnings (4.3 per cent) - from 105.45 to 109.45.
Source: Pre-Budget Report 2004: Opportunity for All - The strength to take the long-term decisions for Britain, Cm 6408, HM Treasury, TSO (0870 600 5522) | House of Commons Hansard, Debate 2 December 2004, columns 781-804, TSO
Links: Report (pdf) | Report (pdf links) | HMT press release | Hansard | Age Concern press release | Guardian report
Date: 2004-Dec
The government announced (in the 2004 Pre-Budget Report) that the winter fuel payment for pensioners would rise in 2004-05 from 200 to 250. But it also scrapped a one-off 100 council tax allowance for pensioners over 70 which had been paid in 2003-04.
Source: Pre-Budget Report 2004: Opportunity for All - The strength to take the long-term decisions for Britain, Cm 6408, HM Treasury, TSO (0870 600 5522) | House of Commons Hansard, Debate 2 December 2004, columns 781-804, TSO
Links: Report (pdf) | Report (pdf links) | HMT press release | Hansard | Age Concern press release | Guardian report
Date: 2004-Dec
The second of a series of reports was published on the needs and circumstances of older persons in Northern Ireland. It focused on levels and sources of income among persons of pensionable age, and the prevalence of low incomes and poverty among pensioners in Northern Ireland.
Source: Eileen Evason, Katrina Lloyd and Pat McKee, Older People in Northern Ireland: Report 2 - Financial circumstances, Institute of Governance, Public Policy and Social Research/Queen s University Belfast (028 9097 2549)
Links: Report (pdf)
Date: 2004-Dec
A report said that people on higher retirement incomes lived longer. The probability of dying between ages 60 and 65 was about doubled if the pension (from a self-administered scheme) was in the lowest band, as opposed to the highest.
Source: An Analysis of the Preliminary Results of the Mortality of Male Pensioners of Self-administered Pension Schemes for the Period 2000 to 2002, Institute of Actuaries (01865 268205)
Links: Report (pdf) | IOA press release
Date: 2004-Nov
A report examined the key issues affecting rural older people in Northern Ireland living in poverty, and sought to ascertain the level and type of contact between rural voluntary and community groups and older people living in rural communities.
Source: Ageing and Rural Poverty, Rural Community Network (NI) (028 8676 6670)
Links: Report (pdf)
Date: 2004-Oct
In the winter of 2003-04 (December-March), there were around 23,500 more deaths than would be expected from levels in the non-winter period. This was the lowest comparable figure since the winter of 1997-98.
Source: Excess Winter Mortality, Office for National Statistics (0845 601 3034)
Links: Report | ONS press release (pdf) | Age Concern press release | Help the Aged press release
Date: 2004-Oct
An article reported on a survey of older homeowners and private renters, which explored their experiences of keeping their homes warm in the winter. Almost half of the sample for whom full information were available were in fuel poverty, and government schemes failed to address some important issues.
Source: Fay Wright, 'Old and cold: older people and policies failing to address fuel poverty', Social Policy and Administration, Volume 38 Issue 5
Links: Abstract
Date: 2004-Oct
Campaigners said that tackling poverty across generations should become a policy priority. The needs of children and pensioners living in poverty should not be seen as in conflict, or competing for limited resources.
Source: Family Misfortunes: The links between child and pensioner poverty, End Child Poverty (020 7843 1913)
Links: ECP press release | Children Now report
Date: 2004-Sep
Researchers found that poverty was not strongly linked to winter deaths in elderly British people. They examined deaths in people aged 75 years or over, focusing on individual risk factors such as social and economic deprivation, sex, home heating, and previous health. They found a substantial (around 30 per cent) increase in winter death in this age group, but only female sex and a history of respiratory illness were associated with winter death.
Source: Paul Wilkinson et al., 'Vulnerability to winter mortality in elderly people in Britain: population based study', British Medical Journal, 18 September 2004
Links: Article | BMJ press release
Date: 2004-Sep
A report set out a budget for a basket of goods and services for all aspects of living by pensioner households as at April 2004, on the basis of a 'low cost but acceptable' standard. The budget was presented in terms of required expenditures (allowing for taxes and benefits). The components of every budget were listed in detail showing place of purchase, unit cost, and estimated lifetime. Housing tenure, car ownership and other variables were taken into account. The food budgets were costed with and without alcohol. For the food budget, menus illustrated how the baskets of food could be used to provide healthy meals.
Source: Low Cost but Acceptable Budget for Pensioners: April 2004, Family Budget Unit at Social Policy Research Unit/University of York (01904 321239)
Links: Report (pdf)
Date: 2004-Aug
Age-Related Payments Act 2004 was given Royal assent. It gave a payment of up to 100 to pensioners aged 70 or over, in recognition of higher council tax bills.
Source: Age-Related Payments Act 2004, TSO (0870 600 5522)
Links: Text of Act
Date: 2004-Jul
Extra funding worth more than 2 billion was pledged in the Spending Review 2004 to help elderly people and poor families insulate and heat their homes. Spending would rise by an extra 140 million over that previously allocated. The objective of eliminating fuel poverty among the elderly by 2010 was re-affirmed.
Source: Stability, Security and Opportunity for All: Investing for Britain s long-term future - 2004 Spending Review/New public spending plans 2005-2008, Cm 6237, HM Treasury, TSO (0870 600 5522)
Links: Spending Review report (pdf links) | Help the Aged press release | Guardian report
Date: 2004-Jul
A report said that 1.83 million pensioner households were getting more money under the new pension credit than under the old minimum income guarantee system. 270,000 households that were eligible for MIG, but did not take up their entitlement, were claiming pension credit.
Source: The New Pension Credit: A review of the campaign to May 2004, Department for Work and Pensions (020 7962 8176)
Links: Report (pdf) | DWP press release
Date: 2004-Jul
A report examined the attitudes and experiences of recipients of pension credit, following its launch in October 2003. 9 out of 10 pensioners receiving the credit believed the government should provide a higher basic state pension without the need for means-tested benefits; and 73 per cent of those surveyed felt that means testing put people off applying for pension credit.
Source: The Impact of Pension Credit on Those Receiving it: Report of a survey among older people, Age Concern England (020 8765 7200)
Links: Report (pdf) | Age Concern press release
Date: 2004-Jun
A third reading was given to the Age-Related Payments Bill, which would give a 100 payment to pensioners aged 70 or over in recognition of higher council tax bills.
Source: Age-Related Payments Bill, Department for Work and Pensions, TSO (0870 600 5522) | House of Commons Hansard, Debate 8 June 2004, columns 150-174, TSO
Links: Text of Bill | Explanatory notes | Hansard | HOC Library research paper (pdf)
Date: 2004-Jun
A second reading was given to the Age-Related Payments Bill, which would give a 100 payment to pensioners aged 70 or over in recognition of higher council tax bills.
Source: Age-Related Payments Bill, Department for Work and Pensions, TSO (0870 600 5522) | House of Commons Hansard, Debate 12 May 2004, columns 360-409, TSO
Links: Text of Bill | Explanatory notes | Hansard | HOC Library research paper (pdf)
Date: 2004-May
A second reading was given to the Age-Related Payments Bill, which would give a 100 payment to pensioners aged 70 or over in recognition of higher council tax bills.
Source: Age-Related Payments Bill, Department for Work and Pensions, TSO (0870 600 5522) | House of Commons Hansard, Debate 12 May 2004, columns 360-409, TSO
Links: Text of Bill | Explanatory notes | Hansard | HOC Library research paper (pdf)
Date: 2004-May
A report analysed whether property was a viable source of retirement income for future pensioners. It concluded that saving in property could supplement private pension saving, but by itself could not be a substitute for an adequate pension.
Source: Chris Curry, Property or Pensions?, Pensions Policy Institute (020 7848 3744)
Links: Report (pdf) | Technical paper (pdf) | PPI press release
Date: 2004-May
An annual report estimated the levels, sources and distribution of pensioners incomes, and examined the position of pensioners within the income distribution of the population as a whole. The average net income of pensioners was 64 per cent higher (in real terms) in 1996-97 than in 1979 before housing costs - and 70 per cent higher after housing costs. Average earnings in the whole economy grew by 36 per cent in real terms over the same period. The rise in pensioners' average income was driven by substantial increases in incomes from benefits, occupational pensions and investments.
Source: Pensioners' Incomes Series 2002/3, Department for Work and Pensions (020 7122 2475)
Links: Report (pdf)
Date: 2004-May
Pension credit increased on 12 April 2004 by 3.35 a week for single people (from 102.10 to 105.45) and by 5.15 a week for couples (from 155.80 to 160.95) - in line with earnings. The basic state pension increased by 2.15 for a single person and 3.45 for a couple, taking it to 79.60 a week for a single pensioner and 127.25 a week for a couple - in line with retail prices.
Source: Press release 8 April 2004, Department for Work and Pensions (020 7712 2171)
Links: DWP press release | Table of benefit rates (pdf)
Date: 2004-Apr
Research found that many people entering retirement felt let down and disillusioned by the state pension. Those who tried to save extra for their retirement felt powerless because their pensions and investments had not lived up to their promises. Only those lucky enough to have a final-salary pension felt really confident about their future. The report called for everyone to be given the right to a basic state citizen pension.
Source: Meg Gay, Retirement Realities: Shocked and struggling, National Consumer Council (020 7730 3469)
Links: Report (pdf)
Date: 2004-Mar
The government said that, in England, the average council tax per dwelling would be 967 in 2004-05, compared with 908 in 2003-04, a rise of 6.5 per cent. For a Band D dwelling (occupied by two adults) the tax would be 1,167, compared with 1,102 in 2003-04 - up 5.9 per cent. Campaigners for the elderly described the increases as 'utterly scandalous'. The government announced (in the Budget) that people aged over 70 would be given an extra 100, payable with the 2004 Christmas bonus, in recognition of council tax rises.
Source: Press release 25 March 2004, Office of the Deputy Prime Minister (020 7944 3000) | Press release 25 March 2004, Age Concern England (020 8765 7200) | Prudence for a Purpose: A Britain of stability and strength - Economic and Fiscal Strategy Report and Financial Statement and Budget Report, HC 301, HM Treasury, TSO (0870 600 5522) | House of Commons Hansard, Debate 17 March 2004, columns 321-336, TSO
Links: ODPM press release (1) | ODPM press release (2) | Age Concern press release | LGA press release | Budget report (pdf links) | HMT Budget press releases | Budget speech | DWP press release | Guardian report (1) | Guardian report (2)
Date: 2004-Mar
The government announced (in the Budget) that it would introduce the option of taking a deferred state pension as a taxable lump sum instead of higher weekly pension payments. Those choosing to defer their state pension by at least one year from April 2005 would be able to take the lump sum. Interest would be payable on the deferred pension (for those choosing the lump sum) at Bank of England base rate plus 2 per cent.
Source: Prudence for a Purpose: A Britain of stability and strength - Economic and Fiscal Strategy Report and Financial Statement and Budget Report, HC 301, HM Treasury, TSO (0870 600 5522) | House of Commons Hansard, Debate 17 March 2004, columns 321-336, TSO
Links: Report (pdf links) | HMT press releases | Budget speech
Date: 2004-Mar
Researchers examined the effect of means-testing of benefits by developing a simulation of their effects on pensioners. Although targeting pension income at the less well-off did generate negative incentives for those on low incomes, it did not lower aggregate savings and work participation levels. This was because the incentive effects for the poor were offset by those for the rich. Increases in means-testing of pensions usually assisted low-income households at the expense of those on middle incomes, and current pension policy initiatives to limit the extent of means-testing probably struck an acceptable balance between economic distortions and redistributive social objectives.
Source: James Sefton, Justin van de Ven, Martin Weale and David Miles, Pensions Means Testing and Early Retirement, Economic and Social Research Council (01793 413000)
Links: Report (pdf) | Summary (pdf)
Date: 2004-Feb
A study found that older people had major concerns about their income: they had entered a period of their life where there was little opportunity to increase their income, and some faced the prospect of the real value of their income decreasing in the future as a result of poor indexation. In addition, the possibility of increased expenditure on paying for care, aids, equipment and adaptations to the home resulted in feelings of financial insecurity.
Source: Glenda Cook, Jan Reed, Susan Childs and Amanda Hall, Does Money Matter? Older people s views of their monetary resources, Joseph Rowntree Foundation, available from York Publishing Services Ltd (01904 430033)
Links: Report (pdf)
Date: 2004-Jan
A report called for an end to the 'scandal' of pensioner poverty among women. It called for a reduction in the lower earnings limit to bring more low-paid workers into the national insurance system; a fairer, more accessible system of credits for carers; a pension for everyone paying into the national insurance system; and reforms to the state second pension.
Source: Susanna Mordaunt, Katherine Rake, Helen Wanless, and Ray Mitchell, One in Four, Age Concern England (020 8765 7200) and Fawcett Society
Links: Report (pdf) | Fawcett Society press release (pdf)
Date: 2004-Jan
A survey found that 9 out of 10 people who applied for the new pension credit were happy with the application process and the service received.
Source: Continental Research, DWP Pension Credit Application Line Customer Satisfaction, Department for Work and Pensions (020 7712 2171)
Links: Report (pdf) | DWP press release
Date: 2004-Jan
A private member's Bill was introduced, designed to amend the complicated law relating to the purchase of annuities in respect of private and personal pensions. It would to give pensioners much greater flexibility over their choice of retirement income needs by limiting the requirement to buy an annuity, which would in turn have to provide a minimum retirement income.
Source: Adrian Flook MP, Retirement Income Reform Bill, TSO (0870 600 5522)
Links: ePolitix summary
Date: 2004-Jan
The 34th edition of Social Trends was published, describing social trends in the United Kingdom by drawing on a wide range of statistics. The report featured a special article on ageing and gender, looking at the implications of ageing for both men and women today, including living arrangements, income and poverty.
Source: Carol Summerfield and Penny Babb (eds.), Social Trends: No. 34 - 2004 edition, Office for National Statistics, TSO (0870 600 5522)
Links: Report (pdf) | ONS press release (pdf) | Guardian report
Date: 2004-Jan
