Spending review to heighten debt fears for the over-75s?

People in Britain over the age of 75 could see their debt fears heightened as a result of the government's forthcoming spending review, new resear…

People in Britain over the age of 75 could see their debt fears heightened as a result of the government’s forthcoming spending review, new research has suggested.

The study has been carried out by Age UK and showed cuts for the poorest older individuals could be equal to one-third of their income.

It revealed this age group will be hit harder than any other and the average home containing somebody of this age will lose £2,200 worth of public services a year by 2014-2015.

This amount is the equivalent to one-sixth – or 14 per cent – of their household income.

The body claimed the measures show the coalition’s spending plans are regressive, rather than fair, as they are targeting the least well-off in society.

Money-wise, some elderly people could be missing out on an average of £2,030 worth of services, which is around a third of their incoming cash.

Those aged between 56 and 74 may also suffer from the proposals, as they will lose around £1,870.

The plans are also likely to adversely affect younger families with children, as these people will witness cuts to education.

Moreover, the organisation warned a funding gap of £2.2 billion is likely to open up over the next four years if social care spending is slashed by 25 per cent.

Michelle Mitchell, charity director at Age UK, said: “As people in later life are generally poorer and more dependent on public spending than other groups, they risk bearing the brunt of swinging cuts.”

A recent study from Aviva revealed adults in the UK are facing the largest pensions gap in the whole of Europe.

By Joe White

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