I’ve blogged preivously about how one of Labour’s rule changes is set to deprive pensioners of millions in benefits. The Daily Telegraph has the story again today:

Pensioners are going to miss out on hundreds of millions of pounds of benefits owed to them under a government move to cut the time they get to claim tax credits.

In a move that could trigger another backbench revolt against Gordon Brown, ministers have abolished the 12-month period in which the pensioners can claim backdated pension tax credits and imposed a new limit of three months.

The rule change, which comes in on October 6, will affect 110,000 of some of the poorest pensioners many of whom are struggling with soaring fuel and food bills.
advertisement

As a result, ministers believe they will be able to save hundreds of millions of pounds because claimants will not apply for payments in time.

A Parliamentary answer to Lynne Featherstone MP shows the cut will save £240million between now and 2010, and a further £285million will be saved between 2015 and 2050.

Read the full story here.