Extra £25 a week for pensioners under new Lib Dem plans.

4.38.23pm BST (GMT +0100) Thu 7th Oct 2004

Last month Charles Kennedy MP unveiled Liberal Democrat plans for pensions, which include an extra £25 a week on the state pension for single pensioners over 75. The new Citizens' Pension would be available without any means-testing to all pensioners aged 75 or over as of right, in the first full year of a Liberal Democrat government, as the first step to providing it for all pensioners.

The policy would also take radical steps in the area of occupational and private pensions. Plans would include:

SIMPLFYING SAVING - making occupational schemes "opt out" schemes rather than "opt in" schemes so that employees have to make a conscious decision not to save in the scheme;

FAIRER PENSIONS - righting an historic injustice. The current system is stacked against women who stay at home to care for their children and/or work part time and who have patchy NI contributions. Based on residency, the Citizen's Pension particularly benefits women;

REDUCING THE SAVINGS GAP - slashing means-testing and ensuring that every penny saved is a penny better off;

OFFERING CHOICE - removing the requirement to buy an annuity at 75, so that people can decide for themselves how to use their savings;

TRUST IN PENSIONS - offering new, low-cost pensions run by National Savings;

SIMPLE GUIDANCE - establishing a kitemark system for occupational pensions so that all employees and job applicants can see the rating that a company's scheme has been given.

Mike Crockart, Edinburgh North and Leith's Liberal Democrat Parliamentary Spokesperson, warmly welcomed the new plans, which were debated and overwhelmingly approved at the Lib Dem Party Conference late last month.

He said, "The Citizen's Pension outlined by the Liberal Democrats will give dignity to people in their old age. Boosting the state pension and restoring the earnings link for the over 75s will target help at the poorest pensioners. Basing the state pension on residency rather than contributions will benefit women, who will no longer be penalised for caring for their children at home or reliant on their husband's pension."

Mike added, "Edinburgh North and Leith has a growing elderly population, with almost 12,000 people over the age of 60. These plans will help local people by giving them a decent pension as a right without needless form filling and bureaucracy. This is about fairness for all pensioners."

"There is a lack of confidence in the pensions system. Today's measures will restore faith in pensions as a way of saving for retirement."