Government urged to end UK pensioner poverty
Jennifer Lowe | Latest pension news, 28 July 2009
Shocking figures reveal the UK has the fourth-highest levels of poverty amongst over-65s in Europe.
Statistics from the European Commission show that, even before the recession set in, a higher proportion of older people in the UK were living on incomes far below the national average compared with those in countries such as Poland or Romania.
The EU research, which compared relative poverty in the 27 member states, shows that nearly one in three UK over-65s were living in poverty in 2007, the same proportion as in Lithuania (30 per cent).
In most leading European economies, pensioner poverty levels are either below or slightly above the EU average of 19 per cent. In Sweden and the Netherlands the percentages are a third of the UK's.
Pensioners in this country experience the biggest drop in income when they retire‚ with average incomes slashed to 30 per cent of their last salary.
Ahead of the publication on Thursday (30 July 2009) of the Work and Pension Committee's review of the government's strategy to tackle the issue‚ Age Concern and Help the Aged are calling on ministers to scale up their efforts to stamp out pensioner poverty. Levels have remained stubbornly high in the past four years and no progress was been made in the run-up to the recession‚ according to the government's own figures.
Recent research by the charity showed that one in five people aged 60 and over are skipping meals to save money on food‚ while two-fifths are struggling to afford essential items. Another survey showed that seven in ten over-65s are resorting to thrifty skills picked up during the war and post-war years to help them through the recession.
Michelle Mitchell‚ charity director for Age Concern and Help the Aged, says, ‘What this report clearly shows is that‚ even before the recession set in‚ many older people weren't keeping up with the pace at which the general wealth of the nation has increased over the past few years. This means they risk being increasingly excluded from community life. In a country where the richest have incomes five times higher than the poorest‚ older people are disproportionately bearing the burden of this inequality.
‘To lift millions of pensioners out of poverty and prevent this situation from getting worse in the future‚ this government and the next must find a more effective system to ensure benefits reach those who need them and meet the existing commitment to reform the pension system by 2012.’
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