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Scrap 'outdated' free TV licences for over-75s, peers say End free TV licences and bus passes for pensioners, peers say
(about 7 hours later)
Free TV licences for over-75s and other "outdated" age-related benefits should be scrapped, a group of peers has said, with money spent instead on housing and training for young people. Free TV licences, winter fuel payments and other "outdated" age-related benefits should be scrapped, a group of peers has said, with the money spent on housing and training for young people.
The Committee on Intergenerational Fairness said subsidised licences were no longer justified given improvements in the incomes of many pensioners. The Committee on Intergenerational Fairness said subsidising licences for over-75s were no longer justified given improvements in pensioners' incomes.
It called for increased focus on vocational support for non-graduates. It also called for free bus passes for the over-65s to be ended.
The BBC is currently consulting on future options for free licences. Campaigners warned against changes, saying pensioner poverty was rising.
The broadcaster will take over responsibility for the entitlement - first introduced in 2000 - from the government in the summer of 2020. The committee said intergenerational fairness was being "exacerbated" by an ageing population, the 2008 global financial crisis and successive government policies that have failed to consider the issue.
The cross-party group of peers said the change was an opportunity for free licences to be gradually withdrawn. It also says the triple lock guarantee for the state pension - which ensures the weekly allowance rises by a minimum of 2.5% every year - should be reconsidered.
Its report argues that many pensioner households are now, on average, better off than their working age counterparts, both in terms of income after housing costs and overall household wealth. According to its report, many pensioner households are now, on average, better off than their working age counterparts, both in terms of income after housing costs and overall household wealth.
It is calling for other universal pensioner benefits, such as the winter fuel allowance and free bus passes for the over-65s, to be cut and for the triple lock guarantee for the state pension - which ensures the weekly allowance rises by a minimum of 2.5% every year - to be reconsidered.
"We are calling for some of the outdated benefits based purely on age to be removed," said Lord True, the Conservative peer who chairs the committee."We are calling for some of the outdated benefits based purely on age to be removed," said Lord True, the Conservative peer who chairs the committee.
"Policies such as the state pension triple lock and free TV licences for the over-75s were justified when pensioner households were at the bottom of the income scale, but that is no longer the case." He said the universal benefits were "justified when pensioner households were at the bottom of the income scale, but that is no longer the case".
Young people are getting a raw deal in many areas, the committee said. Young people were getting a raw deal in many areas, the committee said.
It urged action to reduce exploitation in the rental sector, increase affordable housing and expand further education. It urged action to reduce exploitation in the rental sector, increase affordable housing and expand further education, as well as for an increased focus on vocational support for non-graduates.
But the Centre for Ageing Better warned against "tinkering" with existing benefits when pensioner poverty was increasing for the first time in a decade. The cross-party group of peers said the change was an opportunity for free TV licences to be gradually withdrawn.
The BBC is currently consulting on future options for free TV licences.
The broadcaster will take over responsibility for the entitlement - first introduced in 2000 - from the government in the summer of 2020.
The Centre for Ageing Better warned against "tinkering" with existing benefits, saying pensioner poverty was increasing for the first time in a decade.
"This is not about old versus young," said its chief executive, Dr Anna Dixon."This is not about old versus young," said its chief executive, Dr Anna Dixon.
"It is about creating a society where everyone, regardless of income or background, can enjoy every stage of life."It is about creating a society where everyone, regardless of income or background, can enjoy every stage of life.
"Headline-grabbing proposals like abolishing free TV licences based on age risk distracting from the big structural changes needed across housing, work and communities.""Headline-grabbing proposals like abolishing free TV licences based on age risk distracting from the big structural changes needed across housing, work and communities."
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