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No clarity on pensions and long-term care in coalition review

The coalition government has failed to provide any more detail on its plans for a flat-rate state pension or long-term care fees cap.


by Michelle McGagh on Jan 07, 2013 at 15:53

No clarity on pensions and long-term care in coalition review

The coalition government has failed to confirm any detail on the flat-rate pension or what cap will be placed on long-term care costs, in the mid-term review.

The review had been expected to confirm where the cost of long-term care fees would be capped. It was widely rumoured that the government was going to increase the cap to £75,000. This is £25,000 more than the original plan for a cap set out by the Dilnot report into long-term care, which recommended a cap of between £25,000 and £50,000.

However, the government failed to make headway on long-term care reform, following concerns that the coalition had kicked the issue into the long grass because of costs.

The review said ‘we have made it clear that we support [the Dilnot Commission’s] principles’, but failed to give any more details.

Long-term care received just one more mention in the review’s foreword: ‘We will set out two big reforms to provide dignity in old age: an improved state pension that rewards saving, and more help with the costs of long-term care.’

However, the review did not expand on the coalition’s plan for a single-tier, flat-rate state pension. The original flat-rate had been set at £140-a-week but there is no confirmation of the amount in the review.

Instead the review focused its plans to increase the state pension age in line with longevity, believed to be one of the caveats to the introduction of the flat-rate state pension, which will increase the amount paid out to pensioners.

‘We will put in place a new mechanism to ensure that the state pension age reflects future changes in life expectancy so that the state pension system continues to be sustainable and affordable,’ said the review.

The coalition also said it will ‘continue to protect the state pension through the operation of the triple lock guarantee for the duration of this parliament’.

The triple lock guarantee was made by the coalition in 2010 and increases pensions each year by the best of either inflation, the average earnings increase, or 2.5%.

4 comments so far. Why not have your say?

tough enough

Jan 08, 2013 at 07:54

What can you expect from a bunch of college boys ...all they can do is strut and crow.

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Jan 12, 2013 at 12:19

If the Pensions Review fails to address the plight of the Frozen Pensioner then Webb will have not adopted one of the basic principles he stressed in his Green Paper - that of fairness.

It is not and cannot be right that 4% of the total UK retired population do not get the annual uprating each April - and never will under the present policy.

If you retire in the UK, EEA or a select little group including USA, Serbia and the Philippines the pension is index linked; live in Canada, Australia or Thailand, for example, and it is frozen at the rate in which it first becomes payable in the host country.

Contributions to the NI Scheme made on the same terms and conditions, when working, as everyone else should be honoured with the right of withdrawal from the NI Fund on the same terms and conditions in retirement.

The Pensions Minister must not only produce a system of equality, justice and fairness in his White Paper he must remedy this iniquity that affects those under the current frozen pension policy

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Ian Lewthwaite

Jan 12, 2013 at 17:00

I am holding my breath as i don't expect any equity or fairness from MP's even though they proffess to repeal the Frozen Pensions doublecross.

So back to " make your MP work for you, DON'T re-elect them" its time the "blue rinse " brigade gave all their votes to the MP who will speak for them but also put it into ACTIONs- otherwise kick em out into the real world where I doubt if some could ever get a real job, like working 9-5

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George Morley

Jan 14, 2013 at 01:47

Aye, there's the rub ! When a prospective candidate says he will do this or that when he/she get in, that does not mean that your problems are solved if he/she becomes an MP. You might think that a person looking to stay an MP would make honest promises but there are two blatant cases with Steve Webb and David Cameron where this happened and this is an abuse of the system and against their sworn oath surely. I am referring to the frozen pensions and the referendum over the EU of course..

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