Pensioners 'set to lose out'

PENSIONERS are set to lose out despite government plans to restore the link between pensions and average earnings, it was claimed today.

Edinburgh East Labour MP Sheila Gilmore has warned the move would bring no immediate benefit because earnings increases are below inflation.

She also said that the Government's own calculations showed the VAT rise will cost single pensioners 2.40 a week.

She warned: "Pensioners were told that restoring the earnings link would boost pensions year on year, but in reality pensioners will not see any difference this year.

"With an added VAT bombshell next year pensioners will be worse off week in, week out."