Response to 2026 Budget Statement
Older People’s Commissioner for Wales, Rhian Bowen-Davies, said:
“Older people across Wales frequently raise concerns with me about the impact of the ongoing cost-of-living crisis on their lives, particularly relating to energy costs, so I welcome that targeted financial support will be provided to around two-thirds of households, something I have previously called for.
“Measures to remove standing charges from gas bills, and increase the Warm Home Discount, which reduces electricity bills for eligible households, are also to be welcomed.
“Similarly, changes to Carers’ Allowance will help to ensure unpaid carers – who often face financial struggles – have greater flexibility and do not lose access to vital financial support.
“Unpaid carers currently lose all of the Allowance if they earn anything (even a penny) over the Weekly Earnings Limit, but replacing this ‘cliff edge’ with a taper will be a positive step forward.
“We need to see a similar, more flexible approach to other entitlements – such as Pension Credit – recognising that people just above eligibility thresholds may still face significant financial difficulties but miss out on wider forms of support that could make a significant difference.
“I also welcome arrangements that will ensure that older people who only receive the State Pension – which is proportionally higher in Wales – will not have to pay income tax on what they receive above the personal allowance next year.
“However, it is not yet clear whether this support goes far enough, given that energy bills are expected to rise by 16% in January – around £275 for an average household – while other costs continue to increase rapidly.
“Many older people have shared concerns with me about how they will be able to afford their bills this winter and have said they will be forced to cut back even more on heating and other essentials.
“This creates risks for people’s health and well-being, which often lead to further pressures and costs in the future, often after people reach points of crisis.
“It was also disappointing that there was so little focus on social care. The Prime Minister has rightly identified this as fundamental to people’s quality of life and set out an ambitious vision for a National Care Service for England, referenced again today by the Chancellor.
“But older people and their loved ones need to know what will happen to improve social care before the National Care Service is in place. They also need clarity on the resources that will be provided to address the significant issues currently facing social care.
“Importantly, funding decisions for social care in England also matter for Wales. Any consequential funding for the Welsh Government will affect the options available here to improve social care in the immediate term.
“While there are welcome measures in this Budget and some positive steps forward, the scale of the challenges facing many older people means there is still a great deal of work to do.”
