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Pension Credit shambles heralds winter of discontent

September 30, 2003 12:00 AM
Steve Webb MP

Webb: The Government would better serve pensioners by increasing the pension.

Pensioners are facing a 'winter of discontent' as millions may have to wait up to eight months before they receive their money from the Government's new flagship Pension Credit to be introduced in less than two weeks time.

The meltdown of the Government's Tax Credits helpline seen earlier this year is likely to be repeated with the Pension Credit application line. The Government admit it will be staffed by nearly half as many people as the tax credits line, and the calls will take longer. 6.8 million households will receive application packs for the Pension Credit as compared to the 4.5 million who applied for the new tax credits.

The Government wants all eligible pensioners (half of the entire pensioner population) to apply via telephone for the Pension Credit. Many, particularly older pensioners, are likely to experience difficulties. The average time per application phone call will be 20 minutes.

Steve Webb MP, Liberal Democrat Shadow Work and Pensions Secretary, has attacked the Government's failure to learn lessons, saying : "Pensioners across the country should be bracing themselves for a winter of discontent."

"Designing an application process which will take up to eight months to complete is ludicrous. Christmas will have come and gone, as will have Easter, as will any confidence in the Government's ability to design a workable Pension Credit."

"Tax credits were a disaster. With more people expected to ring the phone lines and less staff to help, the pension credit is set to be a shambolic sequel."

"For all this complexity, the Government would better serve pensioners by increasing the pension, especially for older pensioners who are often the most needy."

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