Press release: The Budget 2012, ‘granny tax’ and its impact on the third sector organisations

OLYMPUS DIGITAL CAMERAWaveLength warns that the changes introduced to age-related allowances in the Budget 2012 will impact negatively on charities providing services to older people.

Pensioners could lose up to £260 a year in income tax allowances, which the charity fears could make more pensioners struggling financially.

Tim Leech, The CEO of WaveLength, said: ‘The austerity measures means that we are already experiencing increase in applications for help for elderly and disabled people. The freeze of income tax allowance for people over 65 could result in more people needing our help. However, charities like WaveLength that are funded mainly from donations from individuals, are already being hit by decreasing donations, as family incomes are being squeezed. The so called ‘granny tax’, will affect a large percentage of our donors, which could mean that they might not be able to donate to charities like ours anymore. We fear that when help for the most vulnerable people in our society will be needed most, third sector organisations might not be able to deliver it’.

WaveLength is a national charity providing free radios and televisions to elderly, disabled, mentally and chronically ill people living in poverty.