Fury at call to ditch triple-lock pension so the wealthier can help to meet costs
PENSIONERS should sacrifice their “triple lock” pension rises so the money can be diverted towards Britain’s crisis-hit care system, according to a think-tank.
Other benefits should be reviewed so better-off older people can pay more towards their generation’s care costs, a report by the Adam Smith Institute argues.
Economist Dr Eamonn Butler and healthcare investment consultant Paul Saper said: “Older people enjoy a number of benefits, from free TV licences and winter fuel payments, to lower rates of National Insurance before they reach pensionable age.
“These, and the pensions Triple Lock, should be reviewed, and the Personal Income Tax Allowance adjusted, so that older but wealthier people make more of a contribution to their generation’s care costs.”
The triple lock system guarantees to increase the state pension each year by whichever is highest: inflation, average earnings or 2.5 per cent.
The recommendations immediately came under fire from campaign groups.
Jan Shortt, general secretary of the National Pensioners Convention, said: “One in four people will need social care in older age and it remains a lottery of life as to who ends up in a nursing home.
“Like all other forms of health care, society as a whole should be funding the cost of care, rather than expecting the individual or their families to carry all the burden.
“Suggesting that only older people should pay for the care of other older people is frankly insulting.
“All those who have more, regardless of their age, could be asked to pay more – but taking the winter fuel allowance off a few millionaire pensioners is simply not going to raise the sort of money needed to halt the collapse of the care system.” The number of people aged 65 and over in England rose by more than 2.2 million between 2006 and 2016 to stand at 11.8 million.
Women aged 65 can expect to live another 21.2 years, and men 18.8 years, but the number of years free from significant health problems is just 10.9 years for women and 10.3 years for men.
The report also proposed a “partnership” that would see people take out insurance to cover future care needs, with the state picking up the cost of anything beyond that.
Dr Butler, the institute’s director, said: “Some completely new ways of funding and providing social care are needed.”