Gordon Brown has unveiled a package of measures designed to boost the income of Britain's pensioners.

Forum Response: Age Concern

Gordon Lishman, director general of Age Concern England, said: "We are delighted that the government has scrapped the unfair rule which cuts older people's pensions and benefits when they go into hospital.

"This is a victory for Age Concern and will be a huge relief to tens of thousands of older people who would otherwise suffer reductions in their pensions and benefits when they are at their most vulnerable.

"It is good news that the Winter Fuel Payment for over 80s has been raised. The extra cash for pensioners on the Minimum Income Guarantee will boost their weekly income to more than £100 for the first time.

"However many pensioners won't feel the benefit of the extra cash because the money isn't getting to them. The government's current targets for the take-up of the Pension Credit are too low and will leave a million of the poorest pensioners out of pocket.

"Although the basic state pension and benefits have risen by slightly more than the rate of inflation, many people will be worse off because average council tax bills are due to rise by four times the rate of inflation.

"Many pensioners living in these areas will understandably feel that what is being given with one hand is being taken away by another. The sharp increases in council tax underlines the need for a more adequate basic state pension that reflects people's actual living costs."

Forum Response: Help the Aged

Mervyn Kohler, head of public affairs at Help the Aged, said: "The increase of £100 per year on the Winter Fuel Payment to people over the age of 80, by way of addressing the insulting 25p per week 'age addition' will add something less than two pounds per week to the income of many of the country's poorest pensioners. This is a very modest improvement which falls well short of what is required."The cruel anomaly of pensioners who remained in hospital for more that six weeks being penalised by having to pay 'hotel' charges out of their pensions and benefits was long overdue for abolition, and we welcome this announcement."With pensions and savings plans in free-fall, and record council tax increases hitting many pensioners on fixed incomes, this Budget was the chancellor's opportunity to take decisive action. However, both today's and tomorrow's pensioners will look in vain for reassurance in this statement.

"It appears that the government's approach to financial security for pensioners is to cross its fingers."

Forum Response: ARP/050

Don Steele, director of social policy for ARP/050, said: "It seems that the power of the 'grey' vote is at last being acknowledged by politicians. No longer will pensions be reduced after six weeks in hospital and the patronising 25 pence pension increase on reaching 80 will be abolished and replaced by a £100 increase in the winter fuel allowance.

"Although these are token changes they are symbolic and will be seen as a victory for both campaigners and common sense. Nevertheless, the government is becoming increasingly aware that it is older people who go to the polls and, therefore, should acknowledge that although these changes are seen as a step in the right direction there are still other issues to be dealt with.

"ARP/050 has stated that the government should turn its back on private pensions and the ultimate goal is a non-means-tested state pension, linked to earnings at a level where handouts and concessions are no longer needed. This would benefit both present and future pensioners. Any government which wishes to retain the vote of older people will sooner or later have to face this fact."

Forum Response: RNIB

A spokesman of the RNIB, said: "RNIB welcomes the help that this Budget will give to the 90 per cent of blind people who are over 60, in terms of maintaining their pension payments if they are in hospital and, if they are 80 plus, ending fuel poverty with an extra £100 on the winter fuel allowance."

Forum Response: Counsel and Care

Martin Green, chief executive of Counsel and Care, told ePolitix.com: "I welcome the chancellor's announcement to remove charges for meals and accommodation for older people in hospital, but wish that he had announced more money to support people in residential care."