LLA response to the Autumn Budget

While it was Chancellor John Healey’s first Budget today it continued a recent theme of treating older people as an afterthought.

A credible Budget must pass a simple fairness test: does it give people in later life greater security, dignity and independence—or ask them to carry a disproportionate share of the burden?

The Chancellor’s explicit pledge to ensure no-one pays tax on their state pension is welcome. However, LLA members are concerned that those that work hard and save for their retirement are then penalised for doing the right thing.

While it’s welcome that the state pension will rise but not be taxed, the system must not leave those on modest incomes facing a cliff edge, potential financial hardship and unnecessary stress.

And we will look closely at the proposed changes to energy costs. Work to bring down bills is broadly welcome but the government must ensure that older people trying to keep warm don’t end up paying more because standing charges are moved on to the unit price instead.

Further measures aimed at those in later life were conspicuous by their absence. For example, there was no reassurance about changes to the pensions triple lock.

The triple lock is a guard against the scourge of pensioner poverty, it is not some ‘nice to have’ that politicians can meddle with willy nilly. Any changes must ensure that the fundamental reasoning behind the policy remain – that pensioners’ purchasing power and living standards do not fall behind or degrade in comparison to the rest of society.

Any new formula scheduled to take effect after 2030 must be built transparently and accompanied by a Minimum Income Guarantee linked to the real cost of living in later life. Later Life Ambitions looks forward to engaging with government to ensure that is the case.

And while the Chancellor spoke of growth and of employment he did not mention older workers once. Those that want to work should be encouraged and enabled to do so via flexible work, retraining and age-inclusive recruitment.

There is a pool of skills and talent and goodwill in older people that could power growth now and train and empower the workers and workplace leaders of tomorrow if the Treasury paid more attention and tailored policies accordingly. Removing barriers to staying in or returning to work is good for individuals, employers and the economy.

Later Life Ambitions will continue to work with partners and engage with government to ensure politicians and policymakers have the needs of older people front of mind as they bring forward the consultations and legislation that arises from today’s Budget statement.