A Pension Increase of £2-40 a week will not cover Pension Inflation

9.35.00pm BST (GMT +0100) Sun 18th Oct 2009

Vince Cable and Mark Alcock

"An extra 34p a day will not cover the inflation rate for most pensioners who face the double whammy of mounting food and fuel costs and soaring council tax bills," said Shadow Liberal Democrat MP for Oldham West & Royton including Chadderton, Mark Alcock.

"Although RPI was negative in September, the state pension has been pegged to prices for 30 years and is now pitifully low. The urgent need is to restore the earnings link now, not wait for another Parliament.

"Many struggling families will view the threat of a benefit freeze with dread. Spreading a meagre allowance even further is going to make life even more miserable next Autumn.

"More than 2m people applied for a crisis loan to make ends meet last year and that number will only increase if benefits are squeezed.

"The effect of this will be to force more pensioners onto means-tested benefits."