Benefits 'simplification' penalising pensions

From October 2008, it is estimated that 100,000 people applying for pension credit, council tax benefit or housing benefit will only be able to have their claims backdated for three months, rather than the twelve months that is presently possible – potentially some households will lose out by as much as £2000.

SNP Work and Pensions spokesperson, Angus MacNeil MP, has demanded answers from the UK Government over reports that thousands of the poorest pensioners could lose hundreds of pounds each in a shake-up of the benefits system.

He said:

"While steps to encourage the take-up of benefit entitlement by pensioners is welcome, Ministers are giving with one hand and taking away with the other.

"At a time when soaring fuel and food costs are taking their toll on vulnerable households, it is inexplicable why the UK Government would choose to penalise pensioners like this.

"Ministers seem to have learnt nothing since the last time they tried to ‘simplify’ the tax and benefit system, and left millions reeling with the 10p tax fiasco."