Professor Robert Wright (Economics) gave evidence to the Finance Committee of the Scottish Parliament on January 11. The committee was interested in his views on the relationship between demographic change and fiscal sustainability. Professor Robert Wright (Economics) gave evidence to the Finance Committee of the Scottish Parliament on January 11. The committee was interested in his views on the relationship between demographic change and fiscal sustainability.
The Finance Committee is investigating the financial implications of demographic change, looking into the impact of an increasingly ageing population on public finances. Warnings have previously been sounded on the future of policies such as free care for the elderly and travel concessions. The Scottish Government has estimated that the population aged 65 and over is likely to increase by 21% between 2006 and 2016, and will be 62% bigger by 2031. For those aged 85 and over, the population will rise by 38% by 2016 and 144% by 2031. The cost of services such as free personal and nursing care, prescriptions, eye tests and concessionary travel was almost £900 million in 2010/11 – and Scotland's pensioner population is set to increase by 54 per cent between 2011 and 2031.
Professor Wright questioned the need for all pensioners to receive benefits, regardless of how well off they are. He argued that most people who have the potential to make a contribution to their care when they are old really should be expected to and that more means testing needs to be introduced. He also endorsed the wider benefits of the free personal care system and explained how such a system can lower the costs associated with accommodating the ageing population.
Professor Wright's views were widely reported in the media. A video recording of the meeting can be found here.