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Budget good news for pensioners

June 23, 2010 9:00 AM

Jo has welcomed the announcement in this week's Budget that the level of the state pension is finally to be relinked with rising earnings.

In his Budget speech to the House of Commons this week, the Chancellor announced that the Lib Dem proposals of a "triple guarantee" for state pensions is to be put into effect from April 2011. This measure will see pensions increase annually in line with earnings, inflation or 2.5%, whichever is highest.

Earlier this year, Jo led a debate in Parliament on pensioner poverty, in which she called for the link between pensions and earnings to be reinstated.

Commenting, Jo said:

"For too long, pensioners have been living on the bread line while the average earnings in this country have risen considerably. The last government allowed the state pension to dwindle for thirteen years, now this Budget turns that trend around. The Budget introduces a key Lib Dem manifesto commitment to help older people through what are going to be difficult times for everyone.

"This is a policy that I campaigned for and I am delighted that pensioners will no longer have to see their pensions fall further and further behind average earnings. Pensioners will share in the rising prosperity of the nation in the good times and be protected during the bad."

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