David CameronStefan Rousseau/PA Wire/Press Association Images

The ongoing debate of whether or not universal pensioner benefits are set for the chop took a new turn yesterday. David Cameron is said to be an ardent fan of universal benefits, after he staked a great deal on guaranteeing their future during the election campaign. However, yesterday he hinted that he may be ready to change his mind.

So what did he say, and is this the death knell for support for pensioners?

U-turn?

Cameron was being asked whether all pensioner benefits, including free bus passes, prescriptions and the winter fuel allowance could be means-tested if the 2015 election produces a conservative government, he shied away from the rigorous denials of his last election campaign.


Instead, he said: "At the next election we will have to set out all our plans and be very clear about what they are. Between now and then I want us to have this debate and ask these difficult questions."

The debate is very clearly ongoing within Whitehall. He is said to be under pressure from all sides - including George Osborne - to cut the benefits and free up a bit of cash for other bits of state aid - such as long term care.

As we reported last week, after being asked to investigate ways of paying for improving social care, government adviser Lord Warner also suggested scrapping universal pensioner benefits - as one of a handful of options

Shake-up

Clearly the Conservatives are not averse to shaking up the benefits system, so further reforms wouldn't be entirely unexpected.

Cameron's speech this week, and subsequent discussions in Whitehall, have confirmed that the Conservative Party is looking at everything from regional benefit rates to breaking the link between benefits and inflation, forcing single mothers to look for work when their youngest child is three, reducing the cap on housing benefits and raising the requirements for job seekers claiming benefits.

It wouldn't be impossible to imagine Cameron adding scraping the winter fuel allowance to this list.

Pension reform on the cards

April 2012 Lifetime pension contribution allowance reduced from £1.8 million to £1.5 million
April 2013 Personal income tax allowances for over 65s will be frozen until inflation causes the general personal allowance to catch up
April 2016 The Universal flat-rate pension will be introduced
December 2018 State pension age for women hits 65
October 2020 State pension age hits 66
April 2028 State pension age hits 67
April 2046 State pension age hits 68

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