Elderly taxpayers will be able to set the first £6,610 of their income against tax, Gordon Brown has announced.

In his budget speech Brown said that those aged 75 or over can set the first £6740 of their income against tax.

Free TV licences will continue for all pensioners aged 75 and over and the winter fuel allowance will be paid this year at £200 and in every year of this parliament.

Forum Response: Help the Aged

Mervyn Kohler, head of public affairs at Help the Aged, told ePolitix.com: "Families with children and care needs did well from the budget, but these measures did not appear extend to families with similar responsibilities for older people.

"More money is promised for cash-strapped social services, with the details yet to be announced, and Help the Aged will be hoping for news about home care, preventative care and support.

"The chancellor's commitment to a large growth in NHS expenditure is very welcome, with 40 per cent of NHS expenditure going to those over 65.

"Better-off pensioners can raise a cheer as age-related tax allowances rise sharply, meaning that170,000 more older people will pay no tax."

Forum Response: Age Concern

Gordon Lishman, director general of Age Concern England, told ePolitix.com: "The Pension Credit is well-intentioned and for the first time will reward people who have saved for their future.

"But there is a danger that the government will end up in credit and not pensioners. Already more than £1 billion in means-tested benefits goes unclaimed because the system is so complicated. The Pension Credit could add to this mountain of cash."

Forum Response: Counsel and Care

Les Bright, deputy chief executive of Counsel and Care, told ePolitix.com: "Many older people will be looking forward to the extra help to be provided by the Pensioner's Credit to be introduced next year. However, the potential complexity of such a system may mean that significant numbers of potential beneficiaries will not make a claim and cash to which they are entitled will go unclaimed. Increasing the basic state pension must remain the goal that offers the most efficient way of dealing with pensioner poverty.

"Additional funding for the health service is very welcome and will make a big difference to the lives of older people. But funding for the health service must not focus solely on acute hospital services as there continues to be a great need to develop and increase community services that make a major contribution to health and vitality.

"Social care services that support older people either before periods of ill health, or as part a planned return to an independent life in the community, will need to share in the increased funding so that 'joined up services' working together for the benefit of patients are widely available and of high quality."