The budget in April 2012 stated that the Age Allowance would be frozen at the 2012/2013 values.
For 2012/13 the rules are that anyone who is 65 by 5 April 2013 will qualify for a personal allowance of £10,500 and anyone who is 75 by that date the allowance is £10,660. However, if the individual’s total income is more than £25,400, the allowance is reduced by £1 for every £2 by which income exceeds that figure, until it equals the basic personal allowance, which is £8,105 for 2012/13.
The allowance will be phased out by saying that only those who were 65 (or 75) by 5 April 2013 will qualify for the age allowance in 2013/14 or any future year. That means only those born on or before 5 April 1948 or 5 April 1938 respectively will qualify. In addition the allowance will be frozen at its 2012/13 value of £10,500 or £10,660 and it will be reduced once income exceeds a certain point, but that point has not yet been confirmed.
Those born on or after 6 April 1948 will only qualify for the basic personal allowance, which will be increased to £9,205 for 2013/14.