9.4.01 News release..

GOVERNMENT HITS PENSIONERS AND DISABLED IN MARCH TOWARDS MASS MEANS TESTING

Local Lib Dem MP, Edward Davey, today challenged the Government to justify a massive new expansion of means testing. As a result of three separate changes, almost a quarter of a million more pensioners and disabled people will be forced on to the means test.

  • 20,000 new claimants of Incapacity Benefit with a meagre occupational pension of just £85 per week will have that benefit means tested at a rate of 50p in the pound.
  • 16,000 disabled people will be affected by the abolition of Severe Disablement Allowance.
  • 200,000 more pensioners will be pushed onto means testing with the increase in the Minimum Income Guarantee.

Edward Davey MP said:

"This week sees another giant stride in the Government’s long march towards mass means testing.

"Almost a quarter of a million people will be hit by a triple whammy of means tests. 20,000 disabled people with company pensions will be means tested for the first time; over 10,000 severely disabled people will lose benefits they used to get as of right and will be forced on to the means test; and 200,000 pensioners will now need to claim a special top-up to get a decent standard of living.

"The Government should realise that means testing is for the few and not the many. It is wrong to force the disabled and pensioners in Kingston & Surbiton to jump through hoops for a decent standard of living that is theirs by right."

Notes

  • On Monday 9th April new rules, introduced in the Welfare Reform and Pensions Act, will mean that 20,000 new claimants of Incapacity Benefit with an occupational pension of £85 per week will have that benefit means tested at a rate of 50p in the pound. This means a massive 50p of benefit is taken away for every £1 per week of pension. For example, a disabled person with an occupational pension of £100 will lose £7.50 in benefits.
  • Severe disablement allowance (SDA) will also be abolished. The Government estimates that about 16,000 people who would previously have been able to claim Severe Disablement Allowance will be affected although about 70% of these will qualify for Income Support. For the 30% whose other income means they do not qualify for Income Support, the average loss was estimated at £50 per week.
  • Also today, the Minimum Income Guarantee is set to increase by £13.70 from £78.45 to £92.15. Current take-up rates would suggest that of those additional 200,000 who qualify for the Minimum Income Guarantee 85,000 will not apply. Independent research by the House of Commons Library shows that up to 200,000 more pensioners will be forced onto means tested benefits.
  • Between 27,00-30,000 pensioners live in the Royal Borough of Kingston upon Thames at any one time. This figure was supplied by Age Concern.
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