Pension power

By THIS IS MONEY
Updated:

 

WAS there anything in the Budget that benefits pensioners who do not yet qualify for the £100 council tax bonus? DF, Bristol

This Is Money says: There were a couple of changes that Gordon Brown did not mention in his speech. The first was that the maximum period for backdating claims for Pension Credit will be increased from three months to 12 months for applications received after October 2004.

Applications received before October will be backdated to the start of the Pension Credit in October 2003.

The other change affects people who decide to defer taking a state pension. From April 2005, anyone who chooses to defer their pension by at least a year will be able to take the money as a taxable lump sum intead of higher weekly pension payments. Interest will be paid on the lump sum at Bank of England base rate-plus 2%, making 6% at present.

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