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No change to Manx Pension Supplement

There’ll be no immediate changes made to the Manx Pension Supplement.

Social Care officials have confirmed the scheme will remain in place until at least 2016.

They have moved to reassure pensioners after the Scope of Government report included a proposal to phase out or limit recipients for the supplement in a bid to save revenue expenditure.

It’s believed that detail may have caused anxiety among pensioners in receipt of the supplement.

However, Social Care Minister Chris Robertshaw says as it's funded out of National Insurance contributions, not general revenue, it would be wrong to suggest savings could be achieved that way.

The number of pensioners has increased by 11.5 per cent over the last five years and the department currently pays state pension to 18,400 people at an annual cost of £34 million.

But Mr Robertshaw says the NI fund is sustainable in the longer term, provided the state pension age is increased in line with increasing average life expectancy.

Tynwald recently approved an increase in the state pension age to 66 for both men and women, coming into effect from 2020.

Mr Robertshaw says government wants to ensure Manx pensioners continue to enjoy an appropriate and affordable state pension.

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