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The article is utter rubbish...
The 50p does not have to be 'paid for' as it reduces HMRC income and the 45p rate is merely less damaging to HMRC revenues than the 50p rate.
I personally do not approve of the removal of the age allowance but this was a process started in the last year but the media have got it wrong and are wildly exaggerating the issue. Lets see the facts:
Income Tax allowances 2011-12 2012-13 2013-2014
Personal Allowance £7,475 £8,105 £9,205
Personal Allowance for people aged 65-74) £9,940 £10,500 £10,500
Personal Allowance for people aged 75 and over £10,090 £10,660 £10,660
As you can see there will not be a reduced age related allowances as such, they are merely bringing them into line with the personal allowances the rest of us get and seeing these are increasing significantly anyway the poorest pensioner will not be affected.
Worth noting too:
1/ The triple lock improves the state pension and this year there will be the biggest ever increase.
2/ The age allowances are lost anyway by 'better off' pensioners who have a taxable income over £24,000 for this year, so it disappears at a rate of £1 for every £2 of taxable income over that resulting in an effective tax rate of 30%.
3/ Pensioners do not pay NI, only income tax so basic rate taxpayers will pay 20% instead of the 32% those of us in work pay.
So while I do not approve of this particular change the fuss is way over the top.