Over the past few months, Age UK and our supporters have been working hard to protect the essential services and benefits that many older people rely on through campaigning, lobbying and evidence.

Social care

The Chancellor said today that there would be an extra £2bn of funding for social care - £1bn of which is to come from the NHS. This is very welcome, as modelling done for Age UK before the CSR suggested that a potential 25% cut in social care would leave 500,000 people entitled to personal care at home without any provision by 2014. Half of this £2bn will come from the NHS budget, which we support, as health and social care are inextricably linked.

Given the 26% government funding cut that councils face and the rising needs represented by an ageing population, we expect that spending on care will fall modestly in real terms over the next four years, but it could have been far worse.

Universal benefits

We are delighted to see that the full range of universal benefits for older people has been retained, including free eye tests, free prescription charges, free bus passes, free TV licences for those over 75, and the Winter Fuel Payment. Many of you have told us how vital these benefits are to you. The temporary increase in the Cold Weather Payment last year will now be made permanent.

Pensions

The Chancellor mentioned again today that the Coalition Government are restoring the link between the basic state pension and earnings from April 2011. From now on, your state pension will rise by the highest of prices, earnings, or 2.5%.

However, the Chancellor announced for the first time today that the State Pension Age for both men and women will rise to 66 by 2020 – six years earlier than planned. This will particularly affect female workers, as it means that the rate of increase of the female state pension age (to equalise it with men at 65) will now be faster than planned. The rise in the State Pension Age will hit the poorest hardest, as it will shorten the retirements of those living in areas with lower life expectancy.

NHS

Before today, it had already been announced that NHS spending would be protected from cuts. In total, the NHS budget will rise from £104bn to £114bn by 2014. However, the NHS will make £20bn in efficiency savings by 2014 by cutting administration costs, and all of this money will be re-invested into health care.

The Chancellor argued that these savings needed to be made to 'deal with our ageing population and the rising cost of new medical treatments'. The budget for health research will now be protected, and the Chancellor announced that dementia research would be a top priority within this. Furthermore, access for older people to psychological therapies will be extended.

Overview

Overall, today’s announcement was better than expected for older people, with significant benefits and services protected and further funding announced for social care.

We’re grateful to all of our supporters for getting involved in our national campaign to protect social care funding and for raising the issue locally with your MPs. It’s your support that has helped us to ensure that vital services will remain available to the people who need it most.