UK pensioners take to streets

The government has raised the winter fuel allowance, but pensioners say this is not enough

Hundreds of pensioners are due to march through Blackpool on Tuesday in protest at the UK Government's policies on elderly people.

The demonstration comes ahead of the annual "parliament" of the National Pensioners Convention, an umbrella organisation representing groups across the country.

It comes a day after Chancellor Gordon Brown said it would be the government's "first priority to tackle pensioner poverty".

The main issue is the level of the state pension, currently at £67.50 a week for single people with fully paid up contributions and £135 for couples.

Many pensioners say recent state pension raise is not enough

At the moment increases are linked to prices - the 75p a week rise which came into effect last month was based on September's inflation rate of 1.1%, a 36-year low. Pressure groups described the increase as "derisory".

Campaigners say it would be much fairer to base increases on earnings, which are currently growing at 6%.

They argue that had the link to earnings not been abolished in 1980, single pensions would now be worth £97.45 and couples would get £155.80.

The government says that next year's increase will be at least £2 a week for a single pensioner based on forecast rates of inflation. But it insists the link to prices will stay in place.

Labour has introduced the minimum income guarantee, which adds £10 to the basic single pension for those who meet certain criteria. This scheme is linked to earnings.

With nearly 11m people in the UK now of pensionable age, there is a powerful "grey" lobby, capable of wielding considerable influence at the ballot box.

In his Budget, Chancellor Gordon Brown brought in a number of measures aimed at winning over pensioners, such as increased tax allowances, free TV licences and higher winter fuel payments.

Long-term care

But the government is aware that the state pension is the key issue which pensioners want addressed - the windfall of £22bn from the auction for the new generation of mobile phone licences has put more pressure on the Treasury to act.

Matters were not helped last month when the social security minister, Jeff Rooker, said he would find it impossible to live on an income of £93 a week. Mr Rooker is due to address the Blackpool convention on Wednesday.

The other main issue to be discussed is long-term care. A Royal Commission report was published a year ago, but the government has still to act on its recommendations, although there is talk of a decision in the summer.

People who have assets of more than £16,000 - including their homes - currently have to pay the full cost of residential care. Those with less than £10,000 pay nothing.

The main proposal of the report is that while there should be some contribution towards living costs, nursing and personal care should be treated differently, and should be available free where needed.

This would cost an extra £1bn a year, but it has been reported that Health Secretary Alan Milburn is close to implementing this proposal.