Osborne to review winter fuel allowances for the elderly...

[dutchman]

Pensioners face losing their free TV licences and winter fuel allowances after the next election, after George Osborne said the benefits must be reviewed.



The Chancellor’s decision means that all three main political parties are now openly discussing cuts to these “universal” benefits for pensioners, while promising that the state pension itself will be protected.

Mr Osborne, who will announce his spending review for 2015-16 on Wedneday, said the economy was "out of intensive care" but could suffer a "relapse" if the coalition changed course and built up more debts.

The Conservatives promised before the 2010 election that they would protect the winter fuel allowance, free TV licenses and bus passes for all elderly people for the duration of this parliament.

However, asked whether he would safeguard the benefits after the next election, Mr Osborne said he would have to “look at how we can afford them” after 2015.

“On pensioner benefits including the winter fuel allowance, we made a very clear promise about this parliament. We believe in keeping our promises to the British people,” he told the BBC’s Andrew Marr show.

“When it comes to pensions and pensioner benefits, our society is getting older. We are going to be spending more on our older people. I want to make sure that is sustainable," he said.

“All those pensioner benefits – not the basic state pension – all those other pensioner benefits, yes of course we have got to look at how we can afford them."

Mr Osborne said the simplest way to make spending on older people sustainable was to raise the state pension age. Under existing plans, the state pension age will rise automatically in line with increases in life expectancy in future decades. It is due to rise to 67 by 2028.

“I am the Chancellor who has increased the pension age. That is a very difficult thing to do."

The winter fuel allowance is worth up to £200 and £300 for those over the age of 80.

[dutchman]

“All those pensioner benefits – not the basic state pension – all those other pensioner benefits, yes of course we have got to look at how we can afford them."

That could mean Pension Credit and Housing Benefit for the elderly are also under threat?

“I am the Chancellor who has increased the pension age."

The previous Labour chancellor already increased it - by up to five years in some cases - the Tories merely increased it further.