PENSIONERS could be in line for an increase in their income - but only if they are aged over 75.
Whitehall sources have leaked details of a Government White Paper on pension reform, it was claimed.
It has been reported that the White Paper, due to be published within the next few weeks, will contain some mechanism to restore the link between the state pension and average earnings.
Margaret Thatcher's Tory Government abolished the link between yearly increases in average earnings and the state pension in 1980. It has been linked to prices ever since.
A spokesman for the Department for Work and Pensions (DWP), who could not confirm the reports, said: "John Hutton, Secretary of State for the DWP, previously set out the principles for pension reform. He said the principles needed to be simple, fair, affordable, sustainable and promote personal responsibility.
"The Pension Commission suggested an earnings-link in their report which was published last year. A White Paper, to be published shortly, will provide a response to the commission's suggestions."
The Press recently reported on a campaign by York pensioners to restore the earnings link. Les Marsh, Bernard Bell and Alfred Greaves are all members of the Transport and General Workers' Union's Greater York Retired Members' Association. The association - affiliated to the National Pensioners' Convention (NPC) -has been sending postcards to pensioners to post to Mr Hutton, asking for improvements to the pension system.
Speaking about today's developments, Mr Marsh, 73, said: "Linking pensions with earnings is absolutely essential if they are to keep up with the cost of living.
"So, it's a good idea, but the Government needs to recognise that pension levels are far too low. This meeting of minds between Brown and Blair sounds good, but it means nothing if they don't intend it to happen until 2010.
"The Government has got to come to terms with this. We're the worst country in Europe when it comes to providing for pensioners."
James Player, deputy chief officer of Age Concern York, said: "It's a start I suppose, but they should never have broken the link in the first place.
"The over-75s sector of the elderly populations is one that is likely to grow rapidly over the next few years.
"So this proposal would affect many more people, as that area of demographic change works its way through."
Updated: 09:35 Wednesday, May 03, 2006
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