Rachel Reeves is facing mounting pressure to scrap free prescriptions for those aged 60 to 65.
The move could potentially raise over £6billion for the Treasury over a decade, according to a previous Government report.
The proposal comes from the Intergenerational Foundation charity, which argues that aligning free prescriptions with the state pension age of 66 would help address a £22billion deficit in the economy.
The suggestion emerges as Labour has already announced plans to cut Winter Fuel Payments for millions of pensioners, sparking debate about the party’s approach to older voters.
In England, most patients currently pay for their prescriptions. The cost rose to £9.90 per item in April, a 2.6 per cent increase from 2023. However, certain groups are exempt from charges, including children, pregnant women, and benefit recipients.
Notably, those aged 60 and above also receive free prescriptions, a policy that has been in place since 1995 when it aligned with the state pension age.
Aligning free prescriptions with the state pension age of 66 would help address a £22bn deficit in the economy
Getty
Although the state pension age has now increased to 66, those over 60 still benefit from free prescriptions, creating a disconnect between the two thresholds.
Liz Emerson, chief executive of the Intergenerational Foundation, argued that taxpayers spend too much on free medication for those still working.
She states: “Aligning free prescriptions with the state pension age would improve intergenerational fairness by reducing the cost of the current 1.1 billion items distributed each year, 90 per cent of which are free of charge.”
This proposal aims to address the growing disparity between the free prescription age and the state pension age, which has widened as the latter has increased over time.
The charity suggests this change could help balance the needs of different generations whilst addressing fiscal challenges. The government report in 2021 found that raising the threshold would raise £6.2billion over 10 years.
However, concerns remain about the potential impact on lower-income groups aged 60-65. A 2021 Government analysis suggested that removing free prescriptions could cost individuals in this age bracket between £50 and £100 annually for medications.
The former Conservative Government under Rishi Sunak ruled out this policy change in 2023 following extensive consultation.
The Department of Health and Social Care has stated there are no immediate plans to change the eligibility criteria for prescriptions.
However, the debate continues as the Government grapples with economic pressures and intergenerational fairness. The potential £6.2billion savings over a decade remain an attractive prospect for policymakers.
Labour’s recent decision to cut Winter Fuel Payments for over 10 million pensioners is expected to save the Treasury £1.4billion.
Dr Kristian Niemietz, an academic at the Institute for Economic Affairs, suggested that Labour’s electoral base is biased towards younger and middle-aged voters, making older age groups an easier target for fiscal savings.
He said: “They wouldn’t want pensioner poverty to go up, but means-testing old-age benefits is a way to make fiscal savings while insulating the poorest from cuts.”
Dr Niemietz further argued against age-based exemptions, stating: “I would not exempt people on the basis of age per se. I would exempt them on the basis of being poor, or on the basis of being sick, but not on the basis of having been born before a particular year.”
Dennis Reed, director of Silver Voices, fears the Prime Minister won’t stop there if he’s allowed to get away with cutting Winter Fuel Payments.
He warned urgent steps must be taken to protect the 2-3 million senior citizens who will suffer the most from the loss of the loss of the £300 payment.
Reed told the Express: “If the Government successfully rides out this storm, they will inevitably squeeze senior citizens further, perhaps by means-testing free prescriptions, bus passes and even the state pension itself.
“It is time for older people to fight for our dignity in our remaining years on this planet.”
As the Budget approaches on October 30, all eyes will be on the Chancellor’s announcements regarding potential tax changes and benefit adjustments.
The ongoing discussion highlights the complex balance between supporting older citizens and managing public finances, a challenge that will likely persist in the coming years.
