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Why older people feel left behind ahead of the Budget

Why older people feel left behind ahead of the Budget

British voters have become more divided by age – and this could have a major effect on this week’s Budget.

At the general elections in Julyless than 10 percent of those under thirty voted Conservative, while 46 percent of those over seventy supported the Tories. Meanwhile, Labor was the most popular party across all age categories until the age of 60, when it was overtaken by the Conservatives.

“People have always talked about social class being the main dividing line in British politics,” said Robert Struthers of polling firm BMG Research. i. “That has almost completely disappeared and age has become increasingly important.”

The result, many observers believe, is a clear shift in policy. After years of younger voters complaining about being sidelined by the Tories, it is now older groups who are unhappy about the way they have been treated by Labour.

More than half a million people have signed an Age UK petition calling on the government to reverse the decision to eliminate winter fuel payments for 90 percent of retirees.

Rachel Reeves’ decision to means-test the benefit comes as she tries to fill a £22 billion black hole in the country’s finances that she says was left by the previous government.

Dennis Reed from campaign group Silver Voices says these policies are just one symbol of how the needs of older people are being ignored.

He said: “The winter fuel thing has attracted all the attention, but it is just the symptom of what we think is a change in the Government’s attitude. We had our clashes during the last government, of course – we had a big fight to keep the triple lock, and we were very unhappy that they had left out social care reform and so on – but at least we were in a position to convince them to change their minds.”

‘It seems like this government is targeting us. That is the opinion of our members. It is the only group selected by the Chancellor for these first steps. Of course, from an economic point of view it makes no sense at all, because it is a relatively small amount compared to the budget gap.”

Polls show many other retirees share Mr Reed’s concerns about Wednesday’s budget. A survey by Savanta shows that 80 percent of people over 55 think they will be negatively affected by Rachel Reeves’ decisions; In contrast, only 28 percent of people between the ages of 18 and 34 think the same.

Silver Voices is calling for further help for pensioners who are on a low income but earn too much to qualify for Pension Credit (by qualifying for Pension Credit, pensioners can continue to claim the winter fuel payment of £200 or £300 depending of age).

The campaign group also insists that the government should rule out income tests for older people, such as free bus passes, free prescriptions and the state pension yourself.

UK budgetary requirements are similar. It is charity director Caroline Abrahams who expresses her frustration that ministers can only point to the triple lock – which guarantees that the state pension will rise every year at the rate of inflation, wage growth or 2.5 percent – as evidence that they protect the elderly.

Pension credit Too many people are excluded who have a low income,” she said i. “There really is very little for those types of people at the moment, and the government’s response is that that’s what the triple lock is for.”

Ms Abrahams also called on ministers to intervene to prevent retirees from benefiting from the new state pension have to pay income tax if they have no other income. This will happen towards the end of this decade as state pensions rise, even if tax thresholds remain frozen.

She said: “It is foolish for the state to give money away with one hand and take away with the other – and besides, if you are dependent on the state pension you really need that help.”

Others are less sympathetic to complaints that the elderly have been abandoned. Liz Emerson of the Intergenerational Foundation says it is young people who have borne the brunt of government policies in recent years and there is little prospect of change despite the change of party in power.

She said: “Intergenerational unfairness is cross-party, it is cross-government. Based on the false outrage over the winter fuel payment for wealthier retirees, intergenerational unfairness is here to stay.”

Research from the Resolution Foundation shows that the share of GDP spent on helping older people – mainly through the state pension and the NHS – has risen from just over six per cent in the 1980s to almost 10 per cent today, including Over-65s benefit from the Conservative government’s decisions on benefits spending between 2010 and this year.

Molly Broome of the Resolution Foundation said: “The poorest pensioners are now actually much better off than the poorest non-pensioners… By the end of the decade, pensioner incomes are expected to exceed incomes at every point in the world. non-retired people. the spectrum.”

But she added that changes to the tax system – including sharp cuts in national insurance contributions, which are only paid by people of working age – have helped to “soften” the situation as pensioners have benefited less than young people .

Ms Abrahams, from Age UK, warns that an excessive focus on differences between generations can be misleading, saying: “The level of inequality within our generations, all generations, is greater than between generations.”

Sam Bidwell of the free market Adam Smith Institute said politicians ultimately faced criticism from all age groups for failing to be honest about the trade-offs needed to promote long-term prosperity – for example by increasing build houses to make housing affordable in the future.

“The core problem is essentially that we made promises that we cannot now deliver on,” he said. On the winter fuel row, Mr Bidwell added: “I don’t think there was enough coordination with the public about why these rollbacks needed to happen and what the point is.”

Nevertheless, a wide gap remains between different generations’ views on how the government should prioritize its resources – pointing to further tensions in the coming years.

The triple lock “is much more supported by retirees or people about to reach retirement age, and less by younger people,” BMG’s Mr Struthers said, adding: “It is much more likely that housing is cited as a top problem by younger people, they are generally more supportive of housing construction than older people.”

This week the Chancellor denied she had singled out pensioners for unfair treatment during winter fuel cuts. Ms Reeves said: “We had a situation where in one year there was a £22 billion gap in the public finances between the money being spent and the money coming in. We couldn’t continue on that path.

“It would result in the economic instability that drove up mortgage rates and borrowing costs for households and businesses under the last administration.

“But the new state pension is worth £900 more this winter than it was a year ago. I can confirm in the Budget on Wednesday that there will be further increases to the new state pension and the basic pension next year, worth up to around £450 per pensioner. And because that is tied to the top 2.5 percent, average income or inflation, that will continue to exceed the cost of living and is worth more than the winter fuel payment.”

A Treasury spokesman said: “We aim to protect pensioners by maintaining the triple lock. Our triple lock pledge means that the state pension will increase by up to £470 from April, greater than any loss for pensioners who are no longer entitled to winter fuel payments.”

Some campaigners will need a lot more convincing. Silver Voices’ Mr Reed warned: “Unless attitudes towards older people change, they will ruin their chances for a generation when it comes to getting older people to vote Labour. It is political madness.”