Every so often, an old policy winds up back in the headlines. Free travel for pensioners is one of those policies
Everyone over the age of 65 currently gets free travel on local public transport, this is an especially good deal in London where travel is the most expensive, but the problem here is that so many of those pensioners are extremely well off...
Is It Still Fair?
For years, pensioners were seen as the poorest group. That’s why they got free bus rides, winter fuel payments, and a bunch of other benefits. But times have changed.
However, data from the Office for National Statistics shows pensioner poverty has dropped a lot since the 1990s, some of these pensioners are sitting on six figure cash reserves on top of their state and private pensions of over £30K a year, mortgage free.
And the Institute for Fiscal Studies points out that pensioner incomes have actually grown faster than those of working-age people for a couple of decades now.
Of course not every pensioner is rolling in case, but many are, and so why this universal free travel perk, it makes no sense!
Universal vs Targeted Benefits
Free bus passes are what economists call a universal benefit, everyone gets one no matter what their economic situation. The other option is means-tested support—only people on lower incomes qualify.
Universal benefits are simpler, obviously, there is no hassle of means testing.
But they cost a lot. And when government budgets are under pressure. , it's right to question them!
Free Travel still Matters
For a lot of pensioners, the bus pass isn’t just about saving a few quid. It means independence. It means getting out, seeing friends, staying active.
If you take the bus pass away, you might save money on paper. But you could end up paying the price elsewhere, with more isolation and worse health among older people.
We just need to get the level of support right...
I'm not sure what that level is, maybe a taper, so it's free for pensioners on just the state pension and then have some kind of tapered claim back method on them for those slightly better off...?
But certainly if yer on £40K a year plus pension, no way you should be getting that free bus pass!