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Party promises to raise pensions by breaking link with national insurance

Posted: 30 September 2004 | Subscribe Online


The "gross pensions injustice" faced by carers and women would end under the Liberal Democrats, delegates were told.

Steve Webb, the party's spokesperson on work and pensions, said that by basing pensions on residency rather than national insurance contributions, women and carers would not be penalised for time spent bringing up children or caring for relatives.

Under the new policy, all single pensioners older than 75 would gain an extra £25 a week and couples who are older than 75 would gain £33 more.
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The party also aims to help pensioners by replacing council tax with a local income tax that it says is based on "people's ability to pay" rather than the size of their home.

"Council tax is increasing at more than double the rate of pensions," said Sandra Gidley, Liberal Democrat spokesperson on older people.

"This means that most pensioners are spending a larger proportion of their income on council tax than ever before, leaving less cash for essentials."

Meanwhile, the party reiterated its pledge to provide free personal care for all older people and disabled people, claiming the policy would break down "artificial barriers" between the funding of health and social care. Personal care is currently free only in Scotland.

Gidley said: "The state provides all health and personal care for someone with an acute illness in hospital.

"It is absolutely unfair to deny that right for someone in a nursing home with a long-term condition."


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