Britain is running a £167bn deficit but instead of proposing spending cuts the Tories and Labour were today happily locked in a generosity contest over pensioner benefits. The row over misleading election leaflets misses two important points.
1) The Tories and Labour have not ruled out cutting pensioner benefits in real terms
David Cameron has vowed to “protect” a range of benefits for the over 60s: winter fuel payments, free TV licences, disability living allowance, free bus passes, the winter fuel payment, attendance allowance and pension credit. But in the manifesto, he does not spell out what “protection” actually means.
The Tories say that this applies to spending in cash terms and basically mirrors the government’s current practice. So while they will reject the idea that they’ll “cut” the benefits, the payments could fall in real terms. (That leaves open the option to freeze the benefits.) And the eligibility rules for the “protected” benefits could also be changed, which again could reduce the total amount of money spent on them. Read more




Jim Pickard
Kiran Stacey