Benefits Again

[Electric_Andy]

Isn't the winter fuel allowance one of those things for which it would cost more in administration to means test it than it would recoup?

I think we should feed all children, keep all of the elderly warm, and tax the everliving f*ck out of the rich in order to pay for it.

Here's someone more erudite than myself, explaining it better than I can.


View: https://x.com/DrFrancesRyan/status/1833430197682512222?t=SoJlGH1ch1uQTYoAqwZelg&s=19

Absolutely. It's also worth taking into account that some "richer" elderly people will not take up the benefit if they don't need it. Well, that's supposing that it's an opt in and not an opt out.

 

[albion]

Another prior benefit removed was the over 75s pensioners free TV license.
On top of that, all other exisiting license holders are actually paying for the free license, still available for of people on pension credit.

I imagine this is now a bit of an admin nightmare.
And Starmer needs to get this dodgy .gov political comment amended to something a little bit more factual.
https://www.gov.uk/government/news/low-income-pensioners-to-get-easier-access-to-free-tv-licences

 

[Beebo]

How about :

combining Income Tax and NI? That would not actually break the “no increase promise”, but, would increase the number paying, by including pensioners.

Capital gains tax on main residence.

Scrap tax relief on ISAs

Bring Capital gains tax rates into line with income tax rates

Combining national insurance is an interesting option. It always confused me tha pensioners dont pay. But workers still pay even when they have accrued the full qualifying period. As above it would hit many pensioners with a 10% tax rise!

Capital gains on a main residence would crash the housing market, as no one could move house. And values would plummet.

ISA are an interesting one, as they are designed to help savers, but that is really only the middle classes. How many people have £20k a year to save? Maybe just reign it in a bit down to £5k?

I think everyone is expecting the capital gain tax rates to increase.

 

[BoldonLad]

That'll go down well with the pensioners.

Steady on there old chap.

Wouldn't that just be scrapping ISAs?

I still think that rather than fiddling with income tax, the best route would be a transaction tax so that multinationals pay their fair share of taxes, close loopholes that allow the super rich to move their cash to the Cayman islands etc. The big money is in getting a fair amount of tax from the people and companies with big money.

Yes, but do you think that is going to happen? The new pigs are already feeding at the trough.

 

[BoldonLad]

Another prior benefit removed was the over 75s pensioners free TV license.
On top of that, all other exisiting license holders are actually paying for the free license, still available for of people on pension credit.

I imagine this is now a bit of an admin nightmare.
And Starmer needs to get this dodgy .gov political comment amended to something a little bit more factual.
https://www.gov.uk/government/news/low-income-pensioners-to-get-easier-access-to-free-tv-licences

Isn’t it just over 75’s on Pension Credit who get free TV licence?, plus, possibly those in Sheltered Accomodation, Nursing Homes etc

 

[BoldonLad]

Combining national insurance is an interesting option. It always confused me tha pensioners dont pay. But workers still pay even when they have accrued the full qualifying period. As above it would hit many pensioners with a 10% tax rise!

Capital gains on a main residence would crash the housing market, as no one could move house. And values would plummet.

ISA are an interesting one, as they are designed to help savers, but that is really only the middle classes. How many people have £20k a year to save? Maybe just reign it in a bit down to £5k?

I think everyone is expecting the capital gain tax rates to increase.

Would bringing down property prices be such a bad thing?

The £20k is a maximum not obligatory, you can put less in per year, but still reap the tax free benefits.

 

[BoldonLad]

Absolutely. It's also worth taking into account that some "richer" elderly people will not take up the benefit if they don't need it. Well, that's supposing that it's an opt in and not an opt out.

It isn’t an “opt in”, it is effectively part of State Pension. This idea of (some) Pensioners not needing it is a slippery slope. Even “wealthy” pensioners receive state pension (provided their contribution record is adequate). No doubt, some of them don’t “need” it. So, is that next, means test state pension? Then, who decides what is “Wealthy”, say, anyone with a private pension, anyone with a house worth (say) £500k and more than two bedrooms (let them downsize and live off the cash released).

 

[albion]

Isn’t it just over 75’s on Pension Credit who get free TV licence?, plus, possibly those in Sheltered Accomodation, Nursing Homes etc

I probably beat you to the update.
'Minister for Pensions Guy Opperman said:
We want everyone to claim the benefits to which they are entitled, including Pension Credit which acts as a gateway for other benefits such as the free TV licence. This change will help reduce the administrative burden on over-75s and put their minds at ease.'

He forgot to add that the main removal of the freebie is came about via combining an attack on the BBC.

 

[BoldonLad]

I probably beat you to the update.
'Minister for Pensions Guy Opperman said:
We want everyone to claim the benefits to which they are entitled, including Pension Credit which acts as a gateway for other benefits such as the free TV licence. This change will help reduce the administrative burden on over-75s and put their minds at ease.'

He forgot to add that the main removal of the freebie is came about via combining an attack on the BBC.

"Gateway" benefits such as Pension Credit create distortions in the benefits system which are often very unfair. This does not apply only to Pension Credit. As I have already said up thread, the benefits system has become far too complex, note, I said too complex, not too generous.

 

[Beebo]

Would bringing down property prices be such a bad thing?

The £20k is a maximum not obligatory, you can put less in per year, but still reap the tax free benefits.

Bring down house prices would be good, but I have never heard anyone giving a sensible way of doing it, without causing huge disruption.
And then once down, there would need to be a control on how many houses one person can buy.

 

[Mr Celine]

Combining national insurance is an interesting option. It always confused me tha pensioners dont pay. But workers still pay even when they have accrued the full qualifying period. As above it would hit many pensioners with a 10% tax rise!

NI was originally an insurance scheme for workers. You paid in if you were working and claimed if you were sick, unemployed, had your arm torn off in an industrial accident or if you finally reached pension age without having succumbed to pneumoconiosis or other industrial diseases.

Workers have to keep paying because you have to have a recent contribution history to qualify for most benefits.