12/10/07 - Brown Hits Pensioners Again

In yesterday’s Pre Budget Announcement (PBR), Alistair Darling announced the early introduction of the flat rating of the State Second Pension (S2P).  The original deadline for this reform was the end of the next parliament, not until around 2014.  Bringing this change forward has raided over £2 billion from people’s pension funds over the next five years.  The change was meant to come into force at the same time that the state pension was re-linked to earnings, raising the income from the basic state pension for all pensioners, but the government has not signaled any plans to bring this forward at the same time.  The result will be that hardworking middle earner families will be paying more for a smaller pension. Hundreds of pounds a year that would have gone into their pensions are now going into the government coffers instead.

Commenting on yesterday’s announcement, Deborah Dunleavy Conservative Parliamentary Candidate for the key marginal seat of Bolton NE said:

 “This is just another example of Gordon Brown’s complete disregard for our pensions System. At a time where the cost of living is increasing faster than earnings and pensions , the overall effect is a paycut for pensioners.

How long is Gordon brown to continue with this constant beating to our pensions system?”