Equity release need for bus pass cuts

Older people may want to take out a drawdown lifetime mortgage to pay for their bus travel, after it was announced that the bus pass age could go up soon.

The Labour government planned to phase in the scheme between now and 2020, but the coalition could bring it in sooner.

The plan is to raise the age from 60 to 65, so for that period homeowners may want a drawdown lifetime mortgage, which would release a steady stream of equity from their house.

At present, the Department for Transport (DfT) spends £1bn a year on providing free travel for older people and the bus pass scheme could save around £60m each year.

A DfT spokesman claimed that the government was "committed to protecting free bus travel for older people."

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