Help from the state

Free television licence. This is a saving of £135.50 a year at 2008 prices.  If you are already past your 74th birthday when your licence comes up for renewal, you can apply for a Short Term Licence, which will cover you until the month you turn 75. 

Another break from the taxman in the form of another hike in personal allowances.  Over-75s can have an income of £9,180 a year before becoming liable to income tax, and couples where one is over 75 will also receive a married couple's tax allowance of £6,625.

All age-related and married couples' allowances are subject to an overall ‘cap’, which for 2008-09 is £21,800. At this limit, allowances start to reduce, but personal allowances can never fall below £5,435 - the personal allowance for anyone under 65 – and married couple's allowance is guaranteed to be at least £2,540.

And at 80….

Higher winter fuel payment. This is £400 per household in 2008-09. 

An extra 25p a week state pension. It's hardly much of an advantage  - more of an insult, really - but that’s the amount of increase and it’s been the same for several years.

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