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Although Gordon Brown didn't take the opportunity to change winter fuel allowances for pensioners - presently £200 for those aged 60-79, up to £300 for those aged 80 or more - he did announce an initiative he claims will take 600,000 more pensioners out of income tax altogether.
To achieve this the tax-free allowance for pensioners under 75 is to rise in three stages to £8,990 in 2008, £9,500 in 2010, and £9,770 in 2011. For over-75s, it will increase to £10,000 by 2011.
And to enhance his green credentials, Mr. Brown also announced that pensioners would be eligible to claim between £300 and £4,000 for insulation and central heating.
Mr. Brown also said that the financial assistance scheme, launched to help an estimated 125,000 pensioners who lost some or all of their pensions when their company schemes went bust, is to be quadrupled to £8 billion so that every one of those affected will now receive help.
An announcement had already been made that from next month the state pension would increase to £87.30 per week for a single person, £139.60 for couples.
21 March 2007 © Moneyextra.com
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