Elderly person resting on cane
Media playback is unsupported on your device
Video

Ministers under fire over tax allowances for pensioners

The government has defended Budget plans to end age-related tax allowances for pensioners, amid claims they amount to a "raid" on their incomes.

It will lead to 4.4m pensioners being an average £83 a year worse off than they would have been, HMRC says.

But Chancellor George Osborne told the BBC no pensioner would be worse off in cash terms, and said state pension increases would leave them better off.

Vicki Young reports.

  • 22 Mar 2012
  • From the section UK
Go to next video: Balls: Budget 'not fair at all'