Rate cuts amount to tax on pensioners - Altmann

She says the Government's response to the credit crisis has been 'woefully inadequate', and ignores the needs of responsible savers in favour of reckless borrowers. Altman believes cutting interest rates, which hit an all-time low of 2% yesterday, is damaging pensioner incomes and is harmful for consumer confidence. A pensioner with £25,000 in savings would receive almost £30 a week in interest if rates were at 6%, but this falls to just £10 a week at current interest rates. "Sharp cuts in interest rates have a negative impact on confidence," she says. "They are also the equivalent o...