Wealthy Pensioners Urged To Give Up Benefits

Written By Unknown on Senin, 29 April 2013 | 00.35

Wealthy pensioners are being encouraged to hand back part of their universal benefits, if they do not need it.

The Work and Pensions Secretary Iain Duncan Smith said it was an "anomaly" that all pensioners receive universal benefits, no matter how wealthy they are.

Most people over the age of 61 are entitled to receive up to £300 in winter fuel payments each year.

He has urged elderly people to voluntarily pay back the taxpayer-funded allowance, if they can afford to live without it.

In an interview with the Sunday Telegraph Mr Duncan Smith said there was "no indication of change" to the current system, despite he and other ministers calling for an amendment to the payment system.

He told the newspaper: "It is up to them if they don't want it to hand it back. I would encourage everybody who reads the Telegraph and doesn't need it to hand it back."

Prime Minister David Cameron promised in 2010 to protect universal payment for the whole term of Parliament, and has so far resisted calls to change it. The Liberal Democrats have proposed a review of the system.

Vince Cable Mr Cable says the issue is unlikely to be addressed by this Parliament

Business Secretary Vince Cable said Mr Duncan Smith had raised an important issue but acknowledged it would be "difficult" for this Government to address it because it was not part of the coalition agreement.

He told Sky News' Murnaghan programme: "Relatively affluent people of pensionable age have done relatively well in very difficult times and it would be fair to acknowledge that. Some people will give it back, some people will fund charities, others will do nothing.

"Relying on individual contributions is obviously not a systematic way of dealing with it but at least he is flagging an important question and I think it's important that he's raised it."

Shadow communities secretary Hilary Benn said the Government needed to "come clean" about its plans for pensioners' benefits.

He told the Murnaghan programme: "I don't agree with him (Mr Duncan Smith). The fact is we have certain universal benefits in our society, people have worked hard, they've paid their taxes and they get that, in this case, when they have retired.

"If Iain Duncan Smith is thinking of changing the commitment that David Cameron made at the last election, to leave those where they were, then it's about time he was clear, and more importantly David Cameron needs to come clean and tell us, is he going to break yet another of his election promises?"

Mr Duncan Smith's appeal to wealthy pensioners comes the day before the beginning of a pilot project for universal credit, a reform of the benefits system that would bring together several different benefits for those of working age into a single payment.

The shift is designed to ensure that no one is better off unemployed and on benefits rather than in work.

The revised benefit would include a commitment from people saying they are available for work, to look for a job and attend interviews, as well as taking the first job available, the Sunday Telegraph said.

If they do not do this they can lose their benefits for a certain amount of time.

Anyone living in the UK who was born before January 6, 1952 can claim winter fuel allowance (apart from a few exceptions), regardless of their income or wealth.


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