How Will the Autumn 2023 Budget Affect the Elderly?

The 2023 Autumn Statement has introduced changes to various benefits and financial schemes that may directly impact elderly people. In this post, we summarize the main adjustments so you can better understand how the Autumn Budget will affect the elderly and what it might mean for you.

Will the Government Be Changing Benefit Rates?

Yes, the government will increase benefit rates in line with inflation. This has been measured by the September Consumer Price Index (CPI), resulting in a 6.7% increase, effective from April 2024. These increases could provide some relief for elderly individuals dependent on these benefits, helping to offset rising living costs.

What's Happening with the Triple Lock?

The triple lock on State Pension is set to increase by 8.5% in April 2024, in line with average wage growth. This increase applies to both the State Pension and the Pension Credit standard minimum guarantee, a significant boost for elderly pensioners relying on these sources of income.

The triple lock ensures that pensions rise by the highest of three measures: inflation, wage growth, or 2.5%. For the elderly, this is crucial in maintaining financial stability and covering essential living expenses.

Is Local Housing Allowance Going Up?

Yes, from April 2024, Local Housing Allowance (LHA) rates will rise to cover 30% of local market rents. This change, which will last for one year, is especially relevant for elderly individuals relying on housing benefits or Universal Credit to cover rent costs. However, LHA rates are expected to be frozen again from April 2025.

For more information on how Local Housing Allowance is calculated in your area, visit the Local Housing Allowance page on the government website here https://www.gov.uk/guidance/local-housing-allowance

Is the National Living Wage Increasing?

Yes, starting in April 2024, the National Living Wage will increase from £10.42 to £11.44 per hour. The age threshold for eligibility will also lower to include people aged 21 and over. This could positively affect elderly individuals who are still part of the workforce or care for younger family members dependent on this income.

Energy Price Support for Vulnerable Households

While the government has reduced the broad energy price support offered during the cost-of-living crisis, there may be additional targeted support for vulnerable households, including pensioners. The Winter Fuel Payment and Cold Weather Payment schemes, which provide financial assistance during the colder months, are essential lifelines for elderly people struggling with heating costs. Any changes or enhancements to these schemes in the Autumn Budget would significantly affect the elderly population.

To learn more about eligibility for the Winter Fuel Payment, check out the Winter Fuel Payment page on the governments website here https://www.gov.uk/winter-fuel-payment

NHS and Social Care Funding

The Autumn Budget may include funding increases for the NHS and social care, which would directly impact elderly individuals. With the UK’s aging population, any additional support allocated to social care services could help ensure that older people receive the necessary care and support at home or in care homes. Funding aimed at reducing waiting times for medical treatment or improving access to GP services could also benefit elderly people who rely heavily on healthcare services.

Inheritance Tax Reforms

Although inheritance tax changes have not been widely discussed in recent Autumn Budgets, any shifts in tax thresholds or exemptions could have implications for elderly individuals planning their estates. If there are changes to inheritance tax rates or allowances, it may impact how elderly people plan to pass on assets to their heirs, particularly if they wish to avoid large tax burdens on their estates.

Housing Adaptation Grants

Increased funding or reforms to Disabled Facilities Grants (DFG), which help elderly and disabled people adapt their homes to their needs (e.g., installing stairlifts, ramps, or accessible bathrooms), could provide additional support. Any expansion of this scheme in the Autumn Budget would help more elderly individuals live safely and independently at home for longer.