When the £10 x/mas present was launched by Ted Heath’s Tory government in 1972, the bonus payment was worth £98 in today’s money.
The £10 Christmas boost was then worth more than the £6.75 basic state pension. The basic pension is now £95.25 a week.
The bonus has declined in real terms ever since it was introduced .By the time Tony Blair and Gordon Brown came to power in 1997, it was worth £14 in today’s money.
Steve Webb, Lib Dem work and pensions spokesman, said: ”The measly Christmas bonus is a slap in the face for today’s pensioners. What was once a valuable additional benefit is now nothing more than a joke.
”When it was brought in, a pensioner could buy Christmas dinner and still have money left over. Today it wouldn’t even buy you the turkey.”