We could curb pensions to be fair on young, hints minister

... but it won’t happen before 2020

Generous benefits for pensioners could be curbed due to fears the young have borne the brunt of cuts, a minister suggested last night.

Work and Pensions secretary Damian Green said there was a need to look at the issue of ‘inter-generational fairness’ over the long term.

But he said no changes would be brought in before 2020 – because the Tory manifesto promised to protect pensioner benefits.

David Cameron’s government pledged a ‘triple lock’ on the state pension, which ensures it will rise each year by whichever is the highest of inflation, average earnings or 2.5 per cent.

The former premier also refused to take away benefits such as the winter fuel allowance and free bus passes from even the richest pensioners.

But in March former work and pensions secretary Iain Duncan smith quit the Cabinet, blaming George osborne’s refusal to cut handouts for the elderly – and so forcing young people to bear the brunt of austerity. Asked about Mr Duncan smith’s comments yesterday, Mr Green said: ‘I absolutely accept that we need to look over time at the area of intergenerational fairness.

‘But I do think we should step back from this view that we’re being too generous to pensioners, because all these things are very long term and if you look over the long term pensioner poverty in the 1980s was 40 per cent of pensioners.

‘It’s now down to 14 per cent. That’s an enormous, beneficial social revolution.’ Mr Green said there are no plans to announce fresh welfare cuts during this Parliament, following the billions of pounds worth of cuts pushed through by Mr Duncan smith and Mr osborne last year. However he said the

‘Beneficial social revolution’

Government had to stick by already planned cuts to balance the public finances.

‘We will meet the previous commitment we’ve made, but there will be no new search for cuts in individual welfare benefits,’ he said. Mr Green added that his appointment would mark a ‘change in tone’ from Mr Duncan smith, who held the job from 2010 to 2016.

The Work and Pensions secretary also told BBC1’s Andrew Marr show that Theresa May had always wanted to be Prime Minister – and that her determination to seize the top job is why she will succeed.

Mr Green, who went to university with Mrs May, said: ‘I think she always wanted to be prime minister and now we know why. she has the capacity to be Prime Minister.’

He explained that although she had never confided in him about her ambitions, she had confided in his wife. ‘she never said it to me,’ he said. ‘It is said that she said it to others, including my wife. so it was reasonably well attested that Theresa was ambitious, but unlike many others ... if she thinks something is worth doing she will go after it and by and large she will get it. That’s why she will be an extremely good Prime Minister.’

Mr Green’s comments that Mrs May’s Government will not cut benefits any further than already planned this Parliament may be seen by some as a sign the previous period of austerity is over.

It marks a continuation of his predecessor stephen Crabb’s approach of not ordering fresh raids on the welfare budget – despite a £4billion black hole left by the decision to abandon planned cuts to disability benefits.

Mr Green added: ‘The period of austerity meant that tough decisions had to be taken across the board, not just in the welfare system. There are things that have been announced that haven’t yet been introduced but people know that they are coming.’