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Baby boomer pensioners the big winners from government pollcies, says report

Baby boomer pensioners have been the biggest winners from government policies since 2010, according to a new study.

Retirees have gained substantially more from tax and benefit decisions since 2010 compared to working-age households, according to the Resolution Foundation, with the average pensioner being £900 better off, while non-pensioner households are £1,400 worse off.

Key to this has been the ‘triple lock’ policy, which has driven state pensions up by 60% from 2010-11 to 2023-24, outpacing the 46% growth in average earnings, said the think-tank

Demographic changes and policies favouring pensioners have also affected the numbers with the numbers rising from 12.4 million in 2009-10 to 13 million in 2024-25 and projected to reach 13.2 million by 2028-29.

Reflecting that, public spending on pensioners has risen from 9.3% of GDP in 2009-10 to 9.8% in 2024-25.

While tax changes like employee national insurance cuts have partially balanced benefits, overall, pensioners will £1,000 better off annually by 2024-25, whereas working-age households see a £760 gain.

Households with children under 14 are £780 worse off due to cuts in child-related benefits.

Faster economic growth is needed to improve living said the Foundation.