There is a lot of disquiet about the pension changes in the budget. Like everyone else pensioners are the last people who any of us wants to tax or create any difficulties for. However the media coverage on this issue is a little exaggerated to say the least.
Firstly the Government has provided the first ever “guarantee” for a pension introduced as a ‘triple lock’ which means that pensioners will see the biggest ever rise in their state pension this year, worth £5.30 per week and never ever will fail to rise below 2.5% per annum – whatever the circumstances. Never again will pensioners get the derisory 75p increase that Gordon Brown gave.
In 2013-14 pensioners will receive £130 more than they would have done without the triple lock, and for the next three years existing pensioners will, on average, be better off than they otherwise would be as a result of changes announced since June 2010 Budget. So pensioners are better off under this Government than they would have been under Labour.
In addition, Ministers are protecting key pensioner benefits such as Winter Fuel Payments, free prescriptions and eye tests, free bus travel and free TV licences for older pensioners.
On the age-related allowance specifically, the change announced in the Budget moves us towards a straightforward system in which everyone has the same personal allowance. The poorest pensioners will not be affected at all, more future pensioners than ever will not have to pay tax due to us raising the national untaxable allowance and those that are impacted will not lose any cash money. The maximum any pensioner will lose by will be £83 per annum from their additional allowances that have been higher than working people’s allowances.
No one is immune from the very difficult decisions that this Government has had to make to address the extremely precarious economic legacy we were left with, but please be assured that pensioners are being protected more than any other group which is only right.