Older people may need debt solutions

Pensioners could be hit by further cuts by the coalition government which may leave them seeking debt help.

Work and Pensions Secretary Iain Duncan Smith has announced that he will be looking into the future of winter fuel payments, bus passes and free TV licences.

This comes despite David Cameron saying that older people’s benefits would be safe during the pre-election TV debates.

Another unnamed minister further raised the debt fears by telling the Financial Times that it was "almost certain" that the hand-outs would stop as the government looks for further ways to save money.

Yvette Cooper, Shadow Work and Pensions Secretary, has condemned any moves which could lead to older people needing debt advice, accusing the government of breaking more election promises.

Kevin Still, director of Atlantic Financial Management, says: "With so many elderly people having significant unsecured debts well past retirement it is inevitable that small negative changes in entitlements could have profound impact on household budgets.

"We recommend that people seek professional debt help, as we see evidence of people dropping essential expenditure items like fuel and insurances in preference to paying unsecured debts, who may be chasing harder for payment."

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