PENSIONER benefits could be cut in a bid to “help the young”, according to a Lords report.
This comes as new figures show that many pensioner households across the UK have become better off on average than working-age families. Here’s what we know so far.
The report said the ‘triple-lock’, which raises state pension payments in line with the highest of consumer prince inflation, average earnings growth should be removed.[/caption]
What are pensioner benefits?
The basic State Pension that an elderly person will be given is £129.20 per week.
Pensioners are also given free TV licences, winter fuel and travel concessions – available from the age of 65, although there are plans to increase this to 67.
Why is there talk of cutting them?
The House of Lords committee on intergenerational fairness and provision said that it was time to start focusing on the young and “rebalance” the government policy.
The report said the ‘triple-lock’, which raises state pension payments in line with the highest of consumer prince inflation, average earnings growth should be removed. The report stated that in fact it should follow average earnings and increase inline with that.
Charities have hit back, saying that the cuts could push 50,000 older people into relative poverty just by removing free TV licences. If the government then stops the triple lock, this could create even more damage, with 700,000 pensioners would be living in poverty.
Pensioners available from the age of 65, although there are plans to increase this to 67[/caption]
What has Lord True said?
Committee chairman Lord True said that benefits must be rebalanced towards the young people as they will be living longer.
“We are calling for some of the outdated benefits based purely on age to be removed.
“Policies such as the state pension triple lock and free TV licences for over-75s were justified when pensioner households were at the bottom of the income scale but that is no longer the case.”
“We also need to change how we view education and training,” he added. “Longer working lives mean older workers need support to re-skill and continue to contribute in the workplace.
“Younger people, particularly those who do not go to university, need the Government to prioritise and fund further education and vocational training.”