Reports are showing that David Cameron is planning to withdraw a lot of benefits during the next Parliament. This would include things like the winter fuel payment. At first glance, it would appear that this would have nothing to do with the travel industry. However, experts are saying that the withdrawal of these benefits is going to cost Brits a lot of money. In turn, Brits will once again have to cut back on unnecessary spending, like going on holidays. This is bad news for the travel industry, which was just starting to get back on its feet.
Cameron is believed to be urged by several ministers to go ahead and abandon his pledge to maintain universal pensioner benefits. Two benefits this would include abandoning are free bus passes and winter fuel payments. This would, of course, hurt people who are on fixed incomes the most.
Although Cameron is being pushed to cut these benefits, it is believed that he is keen on keeping payments that other parties have said that they would cut. Others are saying that these payments cover too many people. In fact, it has been said that even rich pensioners are able to benefit from these payments. Right now, the government cannot afford to be helping out the people who do not need it.
Cameron is also setting up a huge financial commitment to any government that comes into power after him. This is due in part by the fact that he has already started rolling out promises to pensioners to continue increasing their basic state pensions. It is likely that this increase will be of at least 2.5 percent, which would put them in line with the highest of inflation earnings.
When talking about his plans, Cameron said that his main goal is for people to feel secure financially when they reach retirement. He wants the people who have worked hard their whole lives and have done the right things to be provided for. He wants their families to be provided for. That is why he is willing to put so much money into a good state pension.
Either way, Cameron is likely to have to change benefits like the winter fuel payment. For those who do not know, the winter fuel payment was a flat rate that went out to pensioners regardless of their wealth. This flat payment was £300 and was being made to help people stay warm during the winter. Now, with that money not being sent out, people will have to find other ways to make up for that money this winter. This includes cutting back on holidays and other forms of entertainment.
As of right now, no decision has been made one way or the other. It does appear that it is a lot more likely that some of these benefits are going to be cut. That being said, it is hard to make any calls until Parliament meets. Only then will people know what benefits they get to keep and which ones are being done away with.