Tax and other measures

The tax allowances for pensioners were increased at about the same rate as those for younger people. However, the Chancellor was keen to emphasise the benefits that he has introduced, and will introduce, for pensioners, who are considered to be an important constituency in an election. As well as the continuation of free TV licences and the £200 winter fuel payment, the Chancellor promised the following:

• £200 for pensioner households to help with Council Tax, to be paid at the same time as the 2005 winter fuel payment;
  

• free off-peak local bus travel throughout the country from April 2006;
  

• abolition of deductions from pensions where a pensioner is in hospital.