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£10 XMAS BONUS PETITION GETS UNFESTIVE RESPONSE

A petition asking for an increase in the £10 Christmas Bonus, which was supported by hundreds of signatories, has received a less than festive response from the Office of the Prime Minister.

The details of the petitions are set out below followed by the official response from the Government:

“We the undersigned petition the Prime to increase the £10 pensioners Christmas bonus to £20 and uplift in line with inflation thereafter."

"Since the £10 pensioners Christmas bonus was introduced in 1972, it has never been increased for inflation and today enjoys the equivalent purchasing power of just £1.15. To make the bonus more meaningful, the sum should be doubled to £20 and increased in line with inflation thereafter."

The official Government response:

It is true that since it was introduced in 1972 the amount of the Christmas Bonus has remained unchanged. Although, successive Governments have had different approaches to and priorities for pensioners, none have chosen to increase the Christmas Bonus, which is paid to other groups as well. Governments have to make sometimes difficult decisions on how to spend the limited funds available to them. We do keep all tax and welfare policies under review.

However, since this Government was elected, it has recognised the need to give greater assistance to pensioners. In addition to increasing the basic State Pension by more than inflation, it has also introduced a number of other measures to help pensioners enjoy a better standard of living. Measures such as the Winter Fuel Payment, the free television licence scheme and free local bus travel have been widely welcomed. Pension Credit has simplified benefits for pensioners and directly rewards savings - over 2.7 million pensioner households are now receiving more money as a result of the introduction of Pension Credit.

We are now spending around £11 billion a year more on pensioners than would have been the case had we simply continued the system we inherited in 1997. The average pensioner household will be £1,500 a year better off in 2007/08 than in 1997, whilst the least well-off third of pensioners will be £2,200 a year better off, due to our tax and benefit changes.

Author of the petition, Cllr Clarence Barrett (Cranham, RA), said: “The Government response is quite typical, lots of platitudes but it doesn't address the central issue.

“The petition was specifically about the Christmas bonus and the very least this Government could have done is agree to the £10 bonus being increased in line with inflation.”

Supporter of the petition, retired engineer Brian Hayden of Cranham, said: “This bonus hasn't changed for 35 years. For £10 it doesn't seem worth all the paperwork and administration costs involved. If this is meant to be a gesture of goodwill then it should, at least, be kept in line with rising costs over the years”.

2.2.08