Pensions boost welcomed

More than 22,000 pensioners in Rockingham, Kwinana and Mandurah have received increases to their pension payments as part of reforms by the Federal Government.

Picture: Cooloongup pensioner Don Smith welcomes the extra cash.

Those receiving the maximum rate of age, disability and carer pensions, along with veterans’ income support recipients, will get an extra $19.50 a fortnight, and pensioner couples an extra $29.60 a fortnight, starting from payments due yesterday.

Cooloongup pensioner Don Smith appreciated the extra cash but didn’t think it would be enough, especially for those paying rents.

Hesaid health issues could be a burden and food shopping always seemed expensive.

‘‘I save money by having smaller meals rather than three big set meals,’’ Mr Smith said.

He didn’t think the different increases for couples and singles took into account the true cost of living.

‘‘I would be telling a lie if I said it was enough — I pay GST on all my utility bills, but couples get to share that amount between them.’’

Brand MHR Gary Gray said it meant extra money in pensioners’ bank accounts.

‘‘As part of historic pension reforms, the Government delivered an improved indexation system to ensure the pension keeps up with the cost of living,’’ he said.

Mr Gray said pensions are now indexed twice a year, taking into account the Consumer Price Index and the Pensioner and Beneficiary Living Cost Index.

They are then compared to the male total average weekly earnings benchmark and are increased if necessary to meet the wages benchmark.

From January to June 2011, the cost of living increased 2.7 per cent, according to the Pensioner and Beneficiary Living Cost Index.