Pensioners blow savings on booze and gambling

MPs have been told pensioners are splurging savings on alcohol and gambling before falling back on the State for help.

A submission to the Commons Work and Pensions Committee claims that five individuals used up their pots in a matter of months. They then claimed benefits.

Pamela Hewitt, a welfare rights officer for Lancashire County Council, said a man had asked for help after his benefits were stopped. He had released £120,000 from his pension and spent ‘every penny on gambling, a car and alcohol’. His benefits were later reinstated.

Ms Hewitt says: ‘Although he did not get rid of his money in order to claim benefit, he was aware that there was a safety net.’

In 2015 the Government reformed the pension system so over-55s could spend their pensions as they pleased. Before the changes, most people had to buy an annuity, which provides an income for life.