Spring Budget 2024

There are over two million pensioners living in relative poverty. Recent analysis shows that as many as eight million pensioners will be £1000 worst off as a result of the budget. The vast majority of over 65s will receive no benefit with the cut in National Insurance (NI) but they are set to pay hundreds of pounds a year more in income tax. This NI cut won’t help the increasing numbers of older people working beyond their state pension age because they can't afford to retire ….because they do not pay NI.

Well over 60% of pensioners pay income tax. In 2021 the tax thresholds where frozen at £12,570. As a result pensioners will be typically £650 a year worse off by 2027. There was no proposals in the budget to unfreeze the income tax threshold. Personal Taxes will rise by a net £20 billion a year by 2029 despite the recent round of cuts.

Campaigners demands for social tariffs on energy and water would have helped those pensioners on low incomes but were again overlooked.

The extra money for the NHS of £6 billion is welcomed but NHS England leaders say more is needed. The Institute of Fiscal Studies warned that the NHS was set to receive less funding next year than this. This extra money won’t deal with the social care crisis or support GPs to see more patients.

Adult social care is last in the queue and in crisis with 40% of providers reporting a deficit in 2023. Care costs have also increased to fund the 9.8% increase in the national minimum wage. This makes it highly unlikely that Local Authorities will be able to sufficiently cover the cost of care. Care providers have had to hand back contracts, care for fewer people or leave the industry. Councils having to fund care costs will still be going bankrupt this year. More than ever the care industry needs to be brought back into the public sector in line with ARMs Policy.

There is also little money to fix the housing crisis which is posing an increased risk to health. There was no new money to build the 90,000 homes a year that the National Housing Federation believes are needed. There was a cut from 27% to 24% on capital gains tax for landlords which could result in thousands of renters including the elderly being made homeless as more landlords sell up.

The government did not commit to the Triple Lock beyond this year and pensioners alongside others will face rises of at lease 5% in their Council Tax. With the move to digital services many pensioners cannot afford broadband and badly need government support.

This budget did not address the concerns of the elderly. The Chancellor has taken older people for granted. ARMs and PCS have a key role to play alongside the TUC and pensioner's organisations to campaign and to keep up pressure to ensure dignity in old age and a decent standard of living for all.