8-10-03

Pension Credit risks falling into a shambles before it’s even begun – Barrett

John Barrett, Liberal Democrat MP for Edinburgh West, today warned the Government that it risked allowing the pension credit to fall into the same shambles that was the introduction of other tax credits earlier in the year.

Pension Credit, which was made available from last Monday, is a new entitlement that replaces the Minimum Income Guarantee but also gives extra money to pensioners with small amounts of savings and private pensions.

However, figures obtained by John Barrett and the Liberal Democrats show that despite the problems that plagued the introduction of the Working Tax Credit (WTC) and Childrens Tax Credit (CTC) earlier in the year, less call centre staff have been allocated to help those applying for the Pension Credit.

It is estimated that 5.4 million pensioners will apply for the pension credit, 1 million more that applied for the WTC and CTC.  However, only 1,500 staff have been allocated by the Pension Service to deal with Pension Credit applications, despite the fact 2,700 call centre staff were on hand for the other tax credit helpline, which was continually engaged or out of order.

Commenting, John Barrett said:

"During the shambles of the tax credit introduction, I pressed the Government to learn from their mistakes that left thousands of families facing delays in payment.  One of my constituents was even told to phone the helpline back during Eastenders, when it was quieter! 

"Not only does the Department for Work & Pensions seem to have ignored these lessons, they are making an even bigger mistake by  having less staff on hand to deal with a higher number of applications.

"There are already stories of call centre computers crashing, leaving staff unable to deal with applications over the phone.  Serious questions will have to asked and answered if pensioners are left through the winter months without the money they are entitled to and depend on.

"The Government have had long enough to prepare for the introduction of the Pension Credit.  If its introduction does degrade into the same fiasco that was the Working Tax Credit introduction, they will only have themselves to blame."

ENDS

Notes to Editors

1. The Pension Service will write to Pensioners between April 2003 and June 2004. The Pension Credit was introduced on 6th October.  Those who apply before October 2004 will be able to backdate their claim. 

2. The Government's expects 2.8 million of the 9 million pensioners to take up Pension Credit in 2004.  It has said that 3.8 million people are entitled to it.

3. People can phone the Pension Service to apply for Pension Credit on 0800 99 1234.

4. The Pension Credit guarantees everyone aged 60 or over an income of at least £102.10 a week if you are single or £155.80 a week if you have a partner.  Pension Credit will give new money to those who have saved - up to: £14.79 if you are single or £19.20 a week if you have a partner.