OAPs are in line for a decent rise

GUERNSEY'S old age pension looks set to rise in real terms.

Its level will be decided in September when Social Security takes its annual uprating report to the States.

But most of its board members have now spoken in favour of continuing with above inflation increases in the pension - and one member says that most deputies feel the same way.

This follows a furious response to calls from Commerce and Employment minister Carla McNulty Bauer to hold the annual increase at RPI.

While Social Security minister Mark Dorey confirmed yesterday that the negative inflation figure in June had been taken into account, he would not go as far as confirming what the recommendation was.

If Deputy McNulty Bauer's stance was followed this year, a full single person's pension would fall by June's RPI figure of minus 1.3% from £171.25 to £169.02 a week.

Social Security will confirm what rate the pension should be when its report is published on Friday 11 September.

Deputy Dorey said that, given the RPI figure, he could understand why people were concerned about the level of pension the States might agree for 2010.

'The department meets representatives of the Retired Union Members and OAP Association and Age Concern every year and listens carefully to their views, which this year also included reference to the decreasing interest rates on savings and the impact that this is having on incomes,' said Deputy Dorey.

'The department has considered these views and a number of other factors including the extraordinary global economic conditions when deciding on its recommendation to the States for the pension rate for 2010.'