George Osborne has claimed that pensioners will be better off as he faced a mounting backlash over his £1 billion "granny tax" raid.
The Chancellor's move to scrap age-related allowances introduced by Winston Churchill in 1925 has been condemned as "outrageous" by older people's groups.
But speaking on ITV's Daybreak, Mr Osborne said: "No pensioner loses cash. No one watching this programme is a pensioner who is going to lose any cash as a result. They're not going to lose cash, we're going to increase the benefit. At the same time they'll be better off because the basic state pension is going up in a couple of weeks' time by over £5 a week. No one loses any cash from this Budget."
Mr Osborne used his Budget to cut the 50p top rate for Britain's wealthiest earners and lift thousands of low-paid workers out of taxation altogether.
But the Treasury acknowledged that 4.5 million pensioners would lose out as a result of the decision to phase out age-related allowances.
Under the Chancellor's plans, the allowances will be withdrawn for new pensioners from April next year while existing pensioners will have their allowances frozen at £10,500 for the over-65s and £10,660 for the over-75s until overall tax thresholds catch up with them.