17 May, 2006

ORKNEY and Shetland MP Alistair Carmichael yesterday (Tuesday) urged pensioners to put in a claim for pension credits and called for major reform of the pension system.

Mr Carmichael was commenting following the publication of the Department of Work and Pensions Departmental Report 2006, which showed that the government's target of paying 3 million pensioner households Pension Credit by March 2006 will not be met.

Mr Carmichael said: "Once again the government has missed one of its key targets in its war against pensioner poverty. Its failure to ensure that 3 million pensioner households are in receipt of pension credits highlights the ongoing failure of the Chancellor's obsession with means-testing.

"Take-up of pension credit is not picking up, but is in fact slowing down in a way that should be worrying ministers. By the end of February 2006 only 2.7 million pensioner households were receiving pension credits - continuing the low growth of the past year. This meant that almost one million pensioner households missed out on the financial support they are entitled to. The pensioners who are entitled but are not receiving pension credit are by definition amongst the poorest in our society.

"Means-testing must now be seen as unsustainable. The government must accept that fundamental reform of the pension system is now needed. They should use the forthcoming Pensions White Paper to put an end to a system that is leaving thousands of pensioners in unnecessary poverty.

"I would strongly encourage any local pensioner in the northern isles to make a claim if they are having difficulty in making ends meet. Staff at the Job Centres in Kirkwall and Lerwick can give help and advice if they need it. Alternatively they can contact my local offices on 01856 876541 or 01595 69 0044 and I shall do anything I can to help."