Claims by the government that the generous payout of pensions now and that future legislation will cut pensioner poverty has amounted to `Bullshit` as a report from the Institute for Fiscal Studies has revealed that without `substantive resources` being pumped into the problem poverty will continue, even after implementation of proposals outlined in the Governments Pension White Paper.

The crushing IFS report while arguing that the present reforms in keeping the pensions crisis stable through such as the restoration of the link between state pension and earnings, the rest of the system fails pensioners as it is to complex, relying heavily on means tested benefits.

An outlined counter to this problem has been the suggestion that the basic pension should be made Universal – so it is based on residence or citizenship rather than the amount of National Insurance Contributions an individual pays. The report has indicted that this would lift 500 thousand out of poverty but would cost the government £7 billion pounds.

Another outlined proposal and inclusive of option one would be to raise the basic state pension to the level of the pension credit guarantee – a move such as this would halve the poverty of an estimated 2.3 million pensioners but would cost an estimated £20 billion a year.

James Browne an author of the report defined the problem as he states “If the government wishes to see pensioner poverty continue to fall, it will have to find more money from an already tight spending review”. Adding to an already gloomy picture he states if this crisis is not dealt with there will be “pensioner poverty over the next decade that will fail to fall” a gap in wealth that has failed to be nudged by successive governments as shown by the recently released report from the Rowntree foundation ‘Poverty, wealth and place in Britain 1968-2005′.

Anna Pearson, policy manager for Help the Aged, said the report was a “Crushing Blow for Pensioners” and the government had the answers to what “would dramatically change the lives of half a million pensioners overnight”, Just by helping pensioners take up the benefits that are already there but more needs to done.

It would be all to easy to conclude that at least the government is tackling the issue now or at the least catching up with the problem however it seems not and the disparity in wealth is to continue. This cannot lead anyone to despair, limited anger or resignation as you have the power to change government’s jus as you have the power to change the way you Think, Read and Act for a different Future.