Means-testing could be cut to 10% by 2010 - PPI

The report recommends alternative methods to those put forward by the Pensions Commission, which would radically reduce reliance on means-testing through the pensions credit to just 10% of pensioners. In the report it agrees the suggestion by Lord Turner of indexing the basic state pension (BSP) back to earnings rather than prices is the minimum requirement needed to slow the spread of means testing. But the PPI warns the proposals set out by Turner would only reduce means-testing to 45% of pensioners from the current level of 50%, and as the Commission favours a more cost effective app...