The Social Market Foundation has criticised the Winter Fuel Payment and the issue of free bus passes for older citizens, saying it serves no economic purpose. For a left-leaning think tank this is strong stuff. Both the Winter Fuel Payment and free travel for all over 60s were crowd pleasing measures brought in by Labour administrations - not short of buying votes.

The campaign this winter for wealthier pensioners to donate their WFP to charity indicates the stupidity of giving a tax-free subsidy to the well off. It seems to do little to alleviate the problems pensioners have with meeting their fuel bills and the usual argument in favour of continuing it seems to be that pensioners like to receive the payment in the run up to Christmas as it helps to fund the festivities. However it is not a Government's job to finance its citizens' holidays and the simple answer to dealing with the WFP would be to amalgamate it in the state pension and accordingly tax it.

Means testing may seem like an appealing option but not only is it intrusive - meaning those who need the benefit don't get it because they resent the intrusion - but often works out more expensive to administer than offering the benefit universally.

The issue of free bus travel is tougher to deal with. Many pensioners see it as a lifeline and would be hard pressed to fund visits to friends, hospital appointments and other travel necessities. The "free travel" system is however ripe for reform. In England the concession is offered to those at the women's state pension age. In Wales, Northern Ireland and Scotland it is still being offered at age 60.

It was always ridiculous to offer free travel at age 60 and this state of affairs is a throwback to equality legislation which meant that it was no longer possible to tie the concession to pension age without risking a sex discimination legal case. A supine government rolled over and offered multiple concessions including free travel, WFP, free prescriptions and sight tests to the over-60s rather than raising the age for these perks to the male state pension age of 65.

Now as people live and work longer we have many older employees enjoying free transport at all hours of day and night even though they are still earning a satisfactory wage. It is clearly ridiculous to see City workers travelling free to their jobs in Canary Wharf just because they have reached a certain age. It also encourages the elderly who are no longer working to go shopping, book a doctor's appointment and visit friends earlier in the day, further choking rush hour transport systems.

Removing free travel concessions altogether could however be counter productive. We certainly don't want to see the impoverished suffering loneliness and isolation because they are unable to afford to leave their homes. Equally we don't want older people to continue to drive past the age when it is safe to do so because they fear they will lose their mobility if they give up their car.

The answer is surely to return to offering only off-peak travel, particularly in the capital and to raise the age at which the concession can be received, perhaps to 70 or even 75, the same age that the free television licence can be obtained.

The younger retired could be encouraged to purchase concessionary travel tickets for off peak travel. These already exist on the railways by virtue of the Senior Railcard and the Network card and such a scheme could be extended to local buses and the London Tube system. Giving people a free ride just because they have celebrated a particular birthday is a luxury we can no longer afford.