Government expenditure directed at pensioners has 'soared by 60%' meaning the average pensioner is now 'richer than 40%' of the population', according to figures cited by the Institute of Directors.
The claims came in response to shadow chancellor's proposal to reduce winter fuel allowance for wealthy pensioners.
– Simon Walker, director general of the Institute of Directors
Over the past fifteen years government expenditure directed at pensioners soared by 60% in real terms (i.e. after inflation). The median pensioner is now richer than 40% of the population. It would be wrong to exempt better-off pensioners from the sacrifices demanded of working families.
Meaningful reform would also means test other universal pensioner benefits like TV licences and free travel. Ed Ball’s plan would target £100 million in savings, which will have a negligible impact on the welfare budget.
Mr Walker said that if Labour is serious about achieving 'iron discipline’ over the public finances, it cannot limit itself to a 'token tweak' to the winter fuel allowance, which represents a 'drop in the entitlement ocean'.