UK Budget must help ease financial pressure on older people

Age Scotland is calling on the UK Government to use tomorrow's Budget to tackle the growing financial pressures facing older people, with action needed on energy costs, tax thresholds, Pension Credit uptake and support for low-income pensioners. 

Age Scotland's research shows that nearly 60% of older people are financially squeezed, while more than half are unexpectedly dipping into their savings to meet new and rising costs. 

Ahead of the Budget, the charity is urging the Chancellor to take steps to ease these pressures and ensure older people on low and modest incomes have better access the financial support they need

Action needed on soaring energy costs 

Energy bills remain by far the biggest financial challenge for older households experiencing financial difficulty, making further support with energy costs a key priority. 

Age Scotland is calling for a higher level of Warm Home Discount and wider access to support for people on low incomes, or with additional energy needs, who are not currently eligible for social security support. 

The charity also wants to see greater funding made available for devolved household crisis support, including help for households which rely on heating oil, alongside renewed efforts to increase Pension Credit take-up. 

Age Scotland believes the introduction of a social tariff for energy would provide important longer-term protection for older households, who are particularly affected by fuel poverty.

Adam Stachura, Age Scotland's policy director said: 

“The Budget must address the significant financial pressures many older people and pensioners are facing. Our research shows that nearly 60% of older people are financially squeezed and more than half are unexpectedly using their savings to meet new and rising costs. 

“Energy bills are by far the biggest challenge for these older households, and they continue to rise, so we need urgent action from the Chancellor.”

Raise the income tax threshold 

Age Scotland is also calling on the Chancellor to raise the income tax threshold for everyone next year. 

While the State Pension triple lock provides some certainty over the future value of the State Pension, people receiving the full new State Pension will begin paying income tax on part of it from April if the current personal allowance remains unchanged. 

“This anomaly should be addressed, but it is important that people of all ages benefit from an increase in the income tax threshold to help ease the financial burden they face.” 

Scrap the Mixed Age Couples rule 

Age Scotland is renewing its call for the UK Government to scrap the Mixed Age Couples rule, which can prevent a pensioner living with a younger partner from accessing Pension Credit and the additional financial support linked to it. 

“A low-income pensioner should not be denied access to Pension Credit and linked financial support simply because their partner has not yet reached State Pension age and claims Universal Credit. 

“Thousands of low income Scottish households will be affected by this. It’s unfair that a pensioner misses out on crucial support designed for them because of the age of someone they love and live with.” 

Invest in Scotland’s social care system 

Age Scotland also wants the Budget to include substantial new investment in social care in England. Additional spending could result in extra funding becoming available to Scotland, which the charity wants the Scottish Government to invest directly in social care. 

“Scotland’s social care system remains incredibly fragile. Any additional funding generated for Scotland through substantially increased social care spending in England should be invested directly in strengthening social care here. 

“Older people need to see a Budget that recognises the pressures they are facing now, while taking meaningful steps to improve their financial security and the services they rely upon.”