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Kennedy: Elderly will get ‘dignity and security’

Kennedy: Elderly will get ‘dignity and security’

Liberal Democrat leader Charles Kennedy today claimed that his party was the only one with a pensions policy that would give retired people “dignity and security” in their old age.

He said Labour had “absolutely no solutions” on the issues facing pensioners and the Conservatives were offering “sticking plaster” fixes.

Speaking in London, Mr Kennedy said the Liberal Democrats would put in place a citizen’s pension for the over-75s, giving pensioners an extra £100 a month on the basic state pension.

Because it would be based on residency not on national insurance contributions, it would end the “scandalous” discrimination against women, who often had lower pensions because they had taken time off work to have children or look after ill relatives.

The Liberal Democrats would replace the ‘unfair’ council tax – which hit pensioners hardest – with a local income tax, cutting tax bills for four out of five pensioners.

They would also give free personal care to the elderly.

Mr Kennedy said it was “absolutely inexcusable” that two million pensioners lived below the poverty line.

“It is our older generation who supported and constructed the welfare state: the National Health Service, the universal pension system itself. They faithfully paid their taxes and their national insurance. They deserve to see the benefits of their investment in the British state when they retire.”

He added: “These ideas are fair, affordable and will provide dignity and security for many older people in our society.”

In contrast, Labour had entered the election with “absolutely no solutions” to offer on council tax and the basic state pension. Both those issues had been “kicked into the long grass” because they were not prepared to make the tough choices needed.

The Conservatives were offering a “sticking plaster” with their council tax reform, because six million pensioners would not receive their rebate.

They had also “flip-flopped all over the place” on pensions reform, Mr Kennedy said.

“And even though Michael Howard claims that he “will free hundreds of thousands of pensioners from the tyranny of means tested benefits”, in fact the opposite is the case, because his policy will drag 400,000 more pensioners into means-testing.”