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Old age mention


The problem with pensions is that the government's increases are based on the average rate of inflation (The Question, NCE 26 February). This is a confidence trick.

The fair thing would be to increase pensions by the average increase in the cost of living incurred by someone living on a pension. Council services are an unavoidable luxury. Individuals cannot cut down on them like they can with booze or petrol.

So changes in the council tax have an absolute effect upon cost of living which is proportionally greater for lower incomes. A £150 increase in council tax is a cost of living increase of only 0.6% for someone earning £25,000 per annum, but on an income of £5,000 per annum it is 3%.

The councils may or may not be blameworthy for excessive rate increases, but this is a separate issue. Central government should give fair increases in the basic pension based on a proper analysis rather than a statistical scam.

Bruce Thomas (M), bruce@DatabaseCollection.


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