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Government refuses to amend pension credit terms

The UK government has steadfastly refused to change the terms and conditions regarding calculations used to determine pension credits and the overall pension payments available to those in the UK. While we have covered this on a number of occasions on the site, it is a little-known fact that when taking into account savings the UK government assumes an interest rate of 10.4% is payable on savings and uses this figure to adjust pension payments accordingly.

To give an example, only a few months ago a £10,000 savings account would have yielded around £500 interest per year against some accounts which are today yielding something in the region of £10. Yet the government still refuses to alter the 10.4% interest charge in its calculations thereby "robbing" many pensioners of increased payments. Quite why the UK government has refused to change the way pension credits are calculated remains something of a mystery but there is increasing pressure from Age Concern and other similar charities which are fighting the cause for the older generation in the UK.

At the moment there appears little likelihood of a change in government policy but will this decision be amended as we approach the next general election?

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