I agree completely. Jim O'Neill is just an advisor to Labour, he's a Tory through and through and served as a minister under George Osborne.
I think most people understand many pensioners have no other source of income so I think it fair that they should receive special treatment. However, I think it also fair to ask why the giveaway is not means tested because many pensioners have other incomes and are often obtaining more than working people in pension benefits. I think it fair to suggest that the increase should be on a sliding scale with the most needy getting the largest payouts and some getting nothing at all.
I also cannot think of one good reason why people on benefits should not receive the same financial protection.