Updated 11am with PL statement

A government initiative urging pensioners to borrow money by putting up their property as a guarantee has been described by the Opposition as a desperate attempt to address the pensions problem.

Instead of revising the system, the government is continuing to put pressure on pensioners and their next-of-kin, the PN statement signed by spokesmen Mario de Marco and Claudio Grech said. 

One in five pensioners is living in poverty or is at risk of poverty, and yet the government is urging pensioners to go into debt through the newly-unveiled Equity Release scheme, the PN said. 

"This is a government which has lost its sense of social justice and does not care about vulnerable people."

Labour hits back

A party which left pensions frozen as it served 25 years in government has no credibility, the Labour Party hit back. 

In a statement, the PL said the government had a plan spread over a series of initiatives to help pensioners, including a raise in pensions. 

It said the Equity Release scheme was a totally voluntary one which is already being used by the private sector.

"Pensioners have every right to choose what to do with their property and how to maximise its potential during their life," the PL said. 

 

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