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Blair defeated by pension rebels

The Labour leadership has suffered an embarrassing defeat on pensions at the party conference in Brighton.

The motion to restore a link between earnings and the state pension was passed by 60 per cent of delegates.

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Background

Pensioner's protest

A pensioner has made her anger at the Labour Government's 75p-a-week increase in the state pension known by returning the increase to the Chancellor - whose exchequer promptly cashed the cheque.

Nora Knight, 78, of Devon, wrote in her letter to the Treasury that the pension increase was "outrageous and insulting".

She enclosed a cheque for 75p, highlighting her protest and was disgusted to find that the Treasury had cashed the cheque.

Mrs Knight, who lives with her husband Denis, a former English teacher, saw cheque number 101274 on her July statement had been sent to Gordon Brown at 11 Downing Street and had been cashed on July 24.

She told a national newspaper: "I couldn't believe my eyes. I went back to my cheque book to check it was the same amount, and it was. I don't believe for a moment he cashed it in himself, but somebody in the office did."

Retired Mrs Knight added: "I'm just a furious pensioner. Here we are, having reached this age, having been through the war and luckily survived it. It's all very well having Battle of Britain programmes and saying we're wonderful, but what about those of us who are left?

"I'm just fed up with Labour detaching us all. I feel that we've just been shoved overboard. They will find at the next election that they will have a really nasty shock."