WIREDGOV

Britain's over 70s are to enjoy a cash boost of an extra 100 this year. All households with someone aged 70 or over will receive 100 in addition to any other entitlement they are already receiving.

The announcement was made recognising that for many pensioners their Council Tax bill can take up a large percentage of a fixed income.

The new money is on top of the Winter Fuel Payment where households with someone 70 or over will get a total of 300 (including 200 winter fuel allowance) and every household in the country with a pensioner 80 or over will get 400 (including the enhanced 300 winter fuel payment that they will receive).

It was also announced that pensioners who apply for Pension Credit after October will have their entitlement fully backdated for up to 12 months. Backdating was previously planned to be restricted to three months from October this year.

Secretary of State Andrew Smith said:

"This budget builds on the Government's commitment to tackle pensioner poverty and provide our pensioners with additional security and peace of mind. We know that the recent council tax increases have strained pensioners' finances in those authorities that have chosen to levy big rises. So the extra 100 for the over 70s will make a big difference.

"With the Pension Credit reforms, over a million pensioners are entitled to extra Council Tax benefit and as it is rolled out we are ensuring that many pensioners are getting help paying their Council Tax bills for the first time.

"I am delighted that we will extend the period of backdating for eligible Pension Credit applications to twelve months. It underpins our desire to ensure no pensioner misses out on the help available to them."

Alongside these measures, it was announced that employers providing access to pensions information and advice to employees worth up to 150 per person per year, will now be able to do so tax free.

Pensions Minister Malcolm Wicks said:

"This new tax break gives an important new incentive for employers to provide pensions advice for their staff. The workplace is the key route for information and advice on pensions and we announced pilots last month that will test how we can use it most effectively. We will be working with employers and the financial services industry to take these forward.
Notes for Editors

* The 100 payment will not affect any other benefits or
entitlements.

* Pension Credit replaced the Minimum Income Guarantee and has been payable since October 6th 2003.

* The Pension Credit application line, 0800 99 1234, is open 8am to 8pm Monday to Friday and 9am to 1pm on Saturday.

* Simplicity, security and choice: Informed choices for working and saving' published on February 3rd outlined the Government's plans to encourage saving and pension provision in the workplace.

Public enquiries: 020 7712 2171
Website: www.dwp.gov.uk