More than 18,000 pensioners in Tynemouth Constituency stand to benefit from the Budget according to local MP Alan Campbell.

The Chancellor announced an extra £100 for households with a pensioner aged 80 or over, in addition to the £200 winter fuel payment.

From October 2003 the Pension Credit will reward pensioners who have saved for their retirement. Around half of all pensioner households will be entitled to the Pension Credit.

The Pension Credit will mean single pensioners over 65 with incomes of up to £139 a week could receive up to £14.79 a week. Pensioner couples with incomes of nearly £204 a week could receive up to £19.20.

Alan Campbell said

"Tackling pensioner poverty is a Labour priority. As a result of the reforms we’ve introduced since 1997 pensioner households will be on average over £1,250 a year better off in real terms and the poorest third of pensioners will have gained over £1,600 a year."

By 2004-05 the Labour government will be spending £9.2 billion extra in real terms on pensioners including over £4 billion on the poorest third of pensioners. That’s five and a half times more than an earnings link from 1998 would have given pensioners.