Budget 2012: A new framework for ageing?

Budget 2012: A new framework for ageing?

Declaring that the current pension system is complex and unable to deal with the "long-term fiscal challenges" of an ageing population, Budget 2012 has announced a series of measures that will go some way to improving the lives of many.

Chancellor George Osborne revealed that the government will introduce a flat rate pension in an attempt to simplify the system. This single tier pension will be set above the means tested standard Guarantee Credit level

Michelle Mitchell, charity director general of Age UK, has welcomed this change, stating: "Age UK believes that a flat rate pension would enable future pensioners to feel clearer about their retirement income and plan accordingly."

However, she warns that the government must not lose sight of the needs of current pensioners, who are increasingly facing financial hardship.

Another proposal affecting older adults is the freezing of age-related allowances from April 6th 2013 at £10,500 for those born between April 6th 1938 and April 5th 1948.

Those born before April 6th 1938 will have their allowances frozen at £10,660.

However, from April 2013 age-related allowances will not be available, except to those born before April 5th 1948.

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