Pensioners set to lose free bus pass due to state pension changes- who will be eligible? | Personal Finance | Finance
Specifically, the Government is looking to make changes to the retirement age which will affect when people will be able to access this benefit, as well as their state pension. In England, eligibility for the free bus pass is aligned with the state pension age which is 66 years old. However, there are different rules regarding this issue across the UK with residents in Scotland and Wales getting free bus travel once they turn 60.
Currently, Government proposals suggest that the state pension age is set to be increased from 66 to 67 between 2026 and 2028.
Furthermore, the state pension age threshold for this benefit is expected to be hiked to 68 years of age in 2048.
As a result of this change to the state pension, millions of people who otherwise would have been eligible for the free bus pass when they turned 66 will now have to wait even longer.
It should be noted that Government proposals are subject to change and depend on how shifts in life expectancy data.
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Someone only becomes eligible in England for the free bus pass once they reach the state pension age.
This has proven to be controversial due to Scotland and Wales having lower age thresholds for accessing this vital support for pensioners.
Furthermore, the London Freedom Pass also gives concessionary travel for the city’s older residents which are not accessible for their counterparts in other parts of the country.
Those who are eligible for the free bus pass in England can apply via the Government’s website.
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The financial expert believes certain benefits, such as Pension Credit, are more beneficial in the long run than other “freebie” benefits and discounts.
Mr Lowe explained: “The social and cultural reference to ‘freebie’ benefits means nearly all over 65s know about them but their financial value is dwarfed by other benefits which are less well known.
“The state pension alone will not provide a comfortable standard of living so checking your entitlement for other state benefits should be as much a part of planning for retirement as understanding what your private pension and other savings will provide.”
Just Group’s State Benefits Index found that “freebie benefits”, like the free bus pass, free prescriptions, Winter Fuel Payments and the free TV licence, are worth between £2.08 and £18.03 per week each.
In comparison, benefits such as Pension Credit are worth more than £59 a week on average and boost a claimant’s weekly income to £177.10.
A survey of pensioners conducted by Just Group found that one in five of respondents did not know about Pension Credit, despite it being designed to assist those who are struggling on the state pension.
Latest Government figures suggest that around a million state pension claimants who are eligible for Pension Credit are not accessing support.
