IEA report suggests cutting pensioner benefits

Posted on 24 February 2011

The Institute of Economic Affairs (IEA) has released a report suggesting that older people enjoy a "privileged position" economically in comparison to the rest of the population.

According to the report, the elderly have kept their non-means-tested benefits, as well as rising state pensions and higher personal tax allowances.

The document recommended saving money by abolishing free bus travel, television licences and winter fuel allowances, which may impact on people paying for care.

However, charity Age UK reacted angrily to the IEA's findings, saying it shows "total ignorance" of the experiences of the majority of over-65s.

"With political parties united in their commitment to re-building a solid state pension system, it is very disappointing that groups such as the IEA are trying to unpick hard-won consensus," said Michelle Mitchell, charity director at Age UK.

She added that fixing pension payments to prices would lead to a "steady rise" in pensioner poverty over the years to come.

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