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Benefit cuts imposed on pensioners, disabled and other people who stay
long-term in NHS hospitals are to be scrapped, Gordon Brown has announced.
Up until now, people who receive money from the State who
spend more than six weeks in hospital lose money from their weekly
pensions or benefits. The money is deducted to pay for so-called "hotel
charges" associated with NHS care, such as meals and accommodation. But the chancellor has said the charges, which have been in
place since the foundation of the NHS, are unfair and wrong. Vulnerable group Delivering his Budget speech, Mr Brown said they would be
abolished with immediate effect. "It's a hotel charge imposed on one of the most
vulnerable groups in our society. "For everyone else in our country, other than those on
pensions and benefits, hospital care is entirely free of charge. "Therefore, it is wrong that the elderly who have saved
all their working lives for their retirement through national insurance
contributions should now suffer the reduction of their pension entitlement
to pay for hospital care. "So for pensioners, even if they stay in hospital for up
to a whole year, I am now announcing we will abolish this charge. "That charge will be abolished with immediate effect for
pensioners going into hospital from today." It means elderly patients will keep in the region of £28 each
week, which would otherwise be deducted from their pension. Overall, about
30,000 people will benefit from the move. A spokesman for the Department for Work and Pensions said the
changes applied to pensioners and those on benefits across the UK. However, people who stay in hospital for more than one year
could still face deductions from their pensions or benefits. The charity Age Concern, which has been campaigning on this
issue for some time, welcomed the announcement. A spokesman told BBC News Online: "This is fantastic news
for any older person worried about going into hospital and losing money. "We were expecting the amount of time before the
deductions started to be extended, but he's abolished it altogether. "We are talking about a substantial amount of money that
older people who have a long stay in hospital will save." More doctors In his speech, Mr Brown confirmed the government was on track
to significantly increase spending on the NHS over the coming years. Overall spending will rise from £65.4bn last year to £87.2bn
in 2006. By 2008, spending will total £105.6bn. A 1p rise in national
insurance rates will fund the extra spending. He told MPs the extra money would pay for an extra 25,000 more
doctors and 80,000 more nurses by 2008. But Liberal Democrat health spokesman Dr Evan Harris said:
"It will take years for the new money to take effect as new doctors
and nurses are trained and more hospital beds are provided." Mr Brown also announced plans to increase the price of
cigarettes by 8p in line with inflation. That decision was criticised by
doctors. Dr Ian Bogle, chairman of the British Medical Association,
said: "We are dismayed that the tax on cigarettes has been increased
only in line with inflation. "Every year,
120,000 people die from tobacco related illness and the BMA had hoped to
see a higher taxation increase on all tobacco products in order to prevent
young people smoking and to help smokers quit." Copyright
© 2002 Global Action on Aging |
