State pension bonus `will not compensate for inflation`

Pensioners may be left struggling with their personal finances despite measures recently announced by the government which were designed to help them, it has been suggested.

In its Pre-Budget Report, the Government revealed it is to pay a £60 bonus in January to those who rely on the state pension.

However, figures produced by Safe Home Income Plans (SHIP) indicate that such people will have £205.17 eroded from their income in 2008-09.

"The government has offered too little too late to pensioners in this year`s Pre-Budget Report. A £60 bonus paid in January barely covers a third of what will have been eroded from their pensions over the tax year by inflation," stated Andrea Rozario, director-general of SHIP.

Recently, Alex Edmans, a long-term care expert for SAGA, said that an increasing number of retirees are having to take debts against their homes in order to get enough money together to fund care.