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Iain Duncan Smith urges wealthy elderly to 'hand back' benefits Iain Duncan Smith urges wealthy elderly to 'hand back' benefits
(35 minutes later)
Wealthy elderly people who do not need benefits to help with fuel bills, TV licences or free travel should return the money, the work and pensions secretary says.Wealthy elderly people who do not need benefits to help with fuel bills, TV licences or free travel should return the money, the work and pensions secretary says.
Iain Duncan Smith told the Sunday Telegraph he would "encourage" people who do not need such financial support "to hand it back".Iain Duncan Smith told the Sunday Telegraph he would "encourage" people who do not need such financial support "to hand it back".
But the decision whether or not to do so was up to them, he added.But the decision whether or not to do so was up to them, he added.
He also defended the phasing in of the new universal credit.He also defended the phasing in of the new universal credit.
On universal benefits, Mr Duncan Smith said there were no plans to means test to exclude richer pensioners.On universal benefits, Mr Duncan Smith said there were no plans to means test to exclude richer pensioners.
Prime Minister David Cameron has already said universal benefits for pensioners will be protected for almost a year after the 2015 general election. Prime Minister David Cameron has already said the benefits would be protected for the entirety of this Parliament, including for the year 2015-16.
Mr Duncan Smith told the paper: "I have no idea what we will put into the manifesto... I have no indication of change. A general election will be held in 2015, and Mr Duncan Smith told the paper: "I have no idea what we will put into the manifesto... I have no indication of change.
"It's fair to say that [pensioners] are more vulnerable than others and we need to be very careful about what and when we do things, if we ever do.""It's fair to say that [pensioners] are more vulnerable than others and we need to be very careful about what and when we do things, if we ever do."
Worthwhile cause?
The winter fuel allowance provides between £100 and £300 tax-free to help people who have reached the state pension age with heating bills.The winter fuel allowance provides between £100 and £300 tax-free to help people who have reached the state pension age with heating bills.
Entrepreneur Lord Sugar and nightclub owner Peter Stringfellow have been among those who have previously complained they have not been able to opt out of receiving the winter fuel allowance. Former Conservative Chancellor Ken Clarke said there was no "system" for handing the benefit back to the government.
"I think every pensioner and retired person, like myself, obviously has to make up their own mind about whether they really need it and whether they're going to give it to some worthwhile cause.
"No doubt, most pensioners who are reasonably prosperous give quite a lot of money to charity and worthwhile causes in any event."
Entrepreneur Lord Sugar and nightclub owner Peter Stringfellow have been among those who have previously complained they have not been able to opt out of receiving the winter fuel allowance. Various charities have run campaigns to urge older people to donate their benefits.
But Charity Age UK said the fuel and transport benefits make a difference to "many millions" of older people, and encouraging wealthy people to give them up could have a knock-on effect.But Charity Age UK said the fuel and transport benefits make a difference to "many millions" of older people, and encouraging wealthy people to give them up could have a knock-on effect.
"It is open to anyone to decide not to make use of these benefits but when it is suggested that 'wealthier pensioners' should choose to forego them our worry is that some who are badly in need of extra help will feel less inclined to take it: older people on very low incomes sometimes minimise their own difficulties and refer to others they know who are worse off than they are," Caroline Abrahams from Age UK said. "It is open to anyone to decide not to make use of these benefits but when it is suggested that 'wealthier pensioners' should choose to forego them our worry is that some who are badly in need of extra help will feel less inclined to take it," Caroline Abrahams from Age UK said.
"Older people on very low incomes sometimes minimise their own difficulties and refer to others they know who are worse off than they are."
Gradual roll-outGradual roll-out
On the new universal credit - a payment that marks the biggest overhaul of the benefits system since the 1940s - Mr Duncan Smith said it was being implemented over four years because "I want to get these things right". Under the new universal credit, six working-age benefits - income-based jobseeker's allowance, income-related employment and support allowance, income support, child tax credit, working tax credit and housing benefit - will be merged into one.
The changes mark the biggest overhaul of the benefits system since the 1940s, and Mr Duncan Smith said it was being implemented over four years because "I want to get these things right".
He said: "We want to say to people, you're claiming unemployment benefit but you're actually in work paid for by the state: you're in work to find work. That's your job from now on: to find work."He said: "We want to say to people, you're claiming unemployment benefit but you're actually in work paid for by the state: you're in work to find work. That's your job from now on: to find work."
The universal credit starts on a limited basis on Monday for new claimants, who are single, who live in a small number of postcode areas in Ashton-under-Lyne in Tameside, Greater Manchester. Universal credit starts on a limited basis on Monday for new claimants, who are single, who live in a small number of postcode areas in Ashton-under-Lyne in Tameside, Greater Manchester.
Trials in three more areas - Oldham, Wigan and Warrington - will begin in July.Trials in three more areas - Oldham, Wigan and Warrington - will begin in July.
From October, more claimants will move on to universal credit as and when they have a significant change of circumstances, such as starting a new job or when a child is born.From October, more claimants will move on to universal credit as and when they have a significant change of circumstances, such as starting a new job or when a child is born.
From April 2014 until October 2017, the rest of those affected in England, Scotland and Wales will be moved on to universal credit in stages. It will start in Northern Ireland from April 2014.From April 2014 until October 2017, the rest of those affected in England, Scotland and Wales will be moved on to universal credit in stages. It will start in Northern Ireland from April 2014.
On the universal benefits for older people, the Liberal Democrats have proposed a review of the benefits, or taxing them. Lib Dem leader Nick Clegg has said the debate about benefits for people with assets of over £1m could be opened up after the general election.On the universal benefits for older people, the Liberal Democrats have proposed a review of the benefits, or taxing them. Lib Dem leader Nick Clegg has said the debate about benefits for people with assets of over £1m could be opened up after the general election.
A free TV licence, worth £145.50 for a colour set, is provided for people aged 75 or over, while those aged over 60 can get free NHS prescriptions.A free TV licence, worth £145.50 for a colour set, is provided for people aged 75 or over, while those aged over 60 can get free NHS prescriptions.
Eligible older people are entitled to free off-peak travel on local buses anywhere in England when they reach the state pension age. Schemes in Scotland, Wales and Northern Ireland allow people aged over 60 to apply for free bus travel.Eligible older people are entitled to free off-peak travel on local buses anywhere in England when they reach the state pension age. Schemes in Scotland, Wales and Northern Ireland allow people aged over 60 to apply for free bus travel.
The government is in the final stages of deciding its spending plan for the next three years, with welfare accounting for the biggest chunk of it.The government is in the final stages of deciding its spending plan for the next three years, with welfare accounting for the biggest chunk of it.