Think tank wants pensioners to share cuts

A think tank from the Institute of Economic Affairs says it's time the elderly took a share the Government's financial cuts.

The Think Tank says that the special treatment accorded to older people has in effect exempted them from the cuts making it unfair for younger people who have had to contend with tax rises, tuition fees and changes in child benefit.

It said that, for example, just abolishing free bus travel would release £1.3 billion, £700 million saved from stopping free television licences, while stopping the winter fuel allowance would release £2.1 billion.

Moreover, if above-inflation increases to the state pension were dropped then a further £5.6 billion would be found. And just bringing forward the raising of the pension age to 66 by five years, ie 2015 instead of the agreed 2020, would save £5 billion.

Philip Booth, editorial director at the IEA, said: "Older people have escaped the same sort of scrutiny that younger people, and students in particular, have undergone."

He added that the resultant savings would be "recycled straight into tax cuts including substantial tax cuts for the very poorest totalling around £16 billion."

Such statements are highly contentious as many older people have worked hard for their families and country all their life. What is more many older people continue to pay taxes through savings, investments or continued work.

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