The Fair Go for Pensioners Coalition (FGFP) has called on the Abbott government to “come clean” over its plans for the age pension, fearful of reports that Social Services Minister Kevin Andrews may designate indexing of the pension as “unsustainable” welfare.

In a statement to media this week, the FGFP said that it was concerned that the Abbott government may cut back on the indexation of the base pension-rate, a move that would push more pensioners into poverty.

Six monthly indexation of the base pension-rate, using a formula to benchmark the rate in line with wages, helps meet the costs of daily living for many pensioners.

The FGFP say that the biannual adjustments are needed to stop pensioners falling even further behind community living standards.

The campaign group’s statement added that cost-of-living pressures were a major factor in increasing the numbers of elderly people experiencing ‘energy poverty’ – where too many seniors were having to juggle putting food on the table with paying bills.

“Many cannot afford medicines and treatment, dental care is unaffordable and chronic diseases remain unattended,” said an FGFP spokesperson.
The FGFP quoted reports that a number of pensioners were going hungry to meet rent and utility bills, and that high rents for pensioner tenants was leading to even higher rates of homelessness and poverty.

“If the proposed cuts to the current measures used to adjust the base pension-rate twice each year are implemented, pensioners reliant on the pension as their main source of income … will live with increased financial stress and hardship or live in poverty.”

The FGFP is calling on the federal government to honour its promise to separate the age pension from any cuts to welfare, to maintain the current pension indexation formula, and increase the Newstart Allowance to $50 for single people.

On Wednesday a delegation from the FGFP presented a petition to the Victorian Parliament calling for all parties contesting November’s state elections to address key issues that affect low-income earners.