Take from the old and give to the young, say peers

Peers have called on the government to deliver a 'fairer society' by axeing TV licences, free bus passes and winter fuel payments for the elderly, and giving more support to young people.

The House of Lords Committee on Intergenerational Fairness and Provision has suggested removing the triple lock for State Pensions and uprating the State Pension in line with average earnings. They propose that TV licences should be based on household income whilst free bus passes and winter fuel payments should only be available five years after a person becomes eligible for the state pension.

Lord True, chairman of the committee, said: "We found that intergenerational bonds are still strong, and the evidence suggested both young and older people recognise the contribution the other makes and the challenges they face. However, there is a risk that those connections could be undermined if the Government does not get a grip on key issues such as access to housing, secure employment and fairness in tax and benefits.

“We are calling for some of the outdated benefits based purely on age to be removed. Policies such as the State Pension triple lock and free TV licences for over 75s were justified when pensioner households were at the bottom of the income scale but that is no longer the case.”

Many young people are struggling to get on the housing ladder while graduates are burdened with huge debts from having to pay tuition fees. Due to what they say is an inequity in society, the House of Lords committee wants to rebalance policies in favour of the young.

Caroline Abrahams, charity director at Age UK, disagreed with the proposals, saying: “Young people may well need more help but we disagree that this should be at the expense of the older generation. This underplays the extent of need among older people, and skates over the great difficulty of ensuring a targeted approach which actually reaches those older people who are the most vulnerable.

"All the evidence suggests that means-testing, for example, results in significant numbers of very poor older people missing out. More profoundly we reject the notion that helping younger and older people is an ‘either/or’; in practice many at both ends of the age spectrum need our society’s support and an advanced twenty first century economy like the UK is well placed to provide it.”

David Sinclair, director of the International Longevity Centre-UK (ILC-UK) called for a "more fundamental review of how a modern welfare state can be adapted to our ageing society".

’Today’s young are tomorrow’s older people’

He said: “Pensioner benefits are a matter of increasing political debate. While there is a strong case for universal pensioner benefits, it is also perfectly reasonable that these benefits should be taxed, so that those who can afford to pay do.

“Our approach to public policy at the moment risks pitching younger against older people and inadvertently and unhelpfully undermining the intergenerational contract. Today’s young are tomorrow’s older people."

According to the Centre for Ageing Better, the number of people aged 65 and over will increase by more than 40 per cent within 20 years, and the number of households where the oldest person is 85 and over is increasing faster than any other age group.

Dr Anna Dixon, chief executive, Centre for Ageing Better, said: “Britain urgently needs policies that work for people of all ages and which tackle the challenges brought about by increasing socioeconomic and health inequalities. Many young people are struggling on low wages at the same time as pensioner poverty is increasing for the first time in a decade.

“This is not about old versus young; it’s about creating a society where everyone regardless of income or background can enjoy every stage of life.

“Vibrant communities are inclusive of people of all ages. We call on all local authorities to commit to becoming age-friendly communities and invest in community-based activities that bring generations together. We must put an end to age-segregation and eliminate ageism in our society.”

The report also calls for the government to do more to address the shortage of affordable housing for young people to buy and rent and substantially increase funding for Further Education and vocational training to tackle unfairness between those who go onto Higher Education and those who do not.