[Finance] Rachel Reeves to reveal £20bn shortfall left by Conservative Government

[Mellor 3 Ward 4]

When the Winter Fuel Allowance was discussed yesterday, it was stated 800,000 pensioners who were entitled to Pension Credit hadn’t claimed it.
In my mind, this is the sort of thing Age UK should be advising oaps to claim, plus a reduction in council tax if they are the sole occupant of a property.

Why should it be left to a Charity to make sure 800,000 pensioners who are entitled to Pension Credit claim it?

 

[Uh_huh_him]

Marginal rate on income between £100k and £125k is 62%, It's because that's the level where they phase out the personal allowance.

Thanks I didn't know that, so it goes back to 47% after £125?
I suppose that's a slight annoyance, but so is every step up in income tax.
Realising I was going to lose 42% of my bonus was a bit of a pisser, but I'd still love to go back to the days when I used to get one.

 

[Thunder Bolt]

Is that specific to pensioners or the standard 25% discount for sole occupancy.

The standard, but it’s not something old people think of when their spouse dies.

 

[Bozza]

When the Winter Fuel Allowance was discussed yesterday, it was stated 800,000 pensioners who were entitled to Pension Credit hadn’t claimed it.
In my mind, this is the sort of thing Age UK should be advising oaps to claim, plus a reduction in council tax if they are the sole occupant of a property.

The problem is reaching people like my mum. I doubt she's ever heard of Age UK, and isn't one to actively reach out for help and advice.

Which brings it back to me, I guess. I've probably managed to help her be £120-150 per month better off, which doesn't sound a lot, but is pretty significant in terms of her income, and I do feel guilty for not being more involved before.. But prior to her recent health failings, she's always been fiercely independent, so I'm not sure she'd have taken well to me trying to get involved in her financial affairs.

 

[Thunder Bolt]

Why should it be left to a Charity to make sure 800,000 pensioners who are entitled to Pension Credit claim it?

Unless they know, who’s going to tell them?
My mother in law was convinced she wasn’t entitled and wouldn’t claim, until my sister in law got the paperwork to persuade her.
Not everyone has a relative who looks out for them.

 

[Thunder Bolt]

The problem is reaching people like my mum. I doubt she's ever heard of Age UK, and isn't one to actively reach out for help and advice.

Which brings it back to me, I guess. I've probably managed to help her be £120-150 per month better off, which doesn't sound a lot, but is pretty significant in terms of her income, and I do feel guilty for being more involved before.. But prior to her recent health failings, she's always been fiercely independent, so I'm not sure she'd have taken well to me trying to get involved in her financial affairs.

Your last sentence is the problem in a nutshell. See my post about my late mother in law.
Don’t feel guilty as many people don’t know or want to ‘interfere’. Old people want to be independent for as long as they can.

 

[Mellor 3 Ward 4]

The problem is reaching people like my mum. I doubt she's ever heard of Age UK, and isn't one to actively reach out for help and advice.

Which brings it back to me, I guess. I've probably managed to help her be £120-150 per month better off, which doesn't sound a lot, but is pretty significant in terms of her income, and I do feel guilty for being more involved before.. But prior to her recent health failings, she's always been fiercely independent, so I'm not sure she'd have taken well to me trying to get involved in her financial affairs.

My point entirely.

The Govt. needs to ensure that pensioners get what they are entitled to.

 

[Mellor 3 Ward 4]

Not everyone has a relative who looks out for them.

Agree with that 100%

 

[Thunder Bolt]

My point entirely.

The Govt. needs to ensure that pensioners get what they are entitled to.

The government work with the Civil Service to process DWP payments etc.
The whole purpose of a charity is to serve their demographic. Send leaflets out, maybe an advert in a paper now and again?

 

[Uh_huh_him]

My point entirely.

The Govt. needs to ensure that pensioners get what they are entitled to.

Maybe one day governments will invest money in IT projects, to make sure everyone is getting and paying the amount they are supposed to.

My boy has had his PIP taken away from him on the basis that they now think isn't entitled to it.
Trying to find out what he is entitled to, is a completely different matter.

 

[Bozza]

My point entirely.

The Govt. needs to ensure that pensioners get what they are entitled to.

That's a very valid point.

Somewhere in government systems, it should have been easy to identify my mum's pension was very low, so it would have been possible to resolve it proactively.

 

[Thunder Bolt]

That's a very valid point.

Somewhere in government systems, it should have been easy to identify my mum's pension was very low, so it would have been possible to resolve it proactively.

Unfortunately benefits have to be claimed. Your Mum’s pension wouldn’t have triggered anything. She could be living with you, or still have a living spouse.
Don’t forget the Civil Service has been cut back in the last 14 years, and many departments have had multiple changes in law.

 

[seagullsovergrimsby]

Let's see if Richard Hughes head of the OBR who has taken the unprecedented step of instigating a formal review of Hunt's Spring forecasts agrees with you or not.

I think this will show that Jeremy Hunt is a Jeremy Hunt.

 

[Me Atome]

Just imagine for a moment that there really is a £20b "black hole", and just imagine that the Labour sleuths had spotted it before the election.
Now just imagine Reeves and Starmer on the hustings announcing that "there is a shortfall in the budget that the Tories have not announced, but to fix it (if we win the election) we will immediately cancel a load of infrastructure projects, cancel winter fuel payments for most pensioners, and in October we will raise taxes."
I don't think so.

 

[Weststander]

The official (Hutton) inquiry was started in 2010 and reported in 2011, but final salary type pensions were phased out from 2015 to 2022. So if you were already in one of those schemes in 2015 you could continue to accrue benefits until Apr 2022. And you would retain benefits banked up to that date. From Apr 22 you would be in the new pension scheme.
This is an oversimplification , the whole subject is complex and details vary by public sector group.

It is more complicated than that. These are still fantastic defined benefit pension schemes. From 2015 career average.

Mrs.W’s in the NHS scheme. 9.8% employee contributions, so really just a 7.84% reduction in net pay. Overall 30.48% is contributed, the public purse meeting the 22.6% difference.

But the days of retiring at 60 on 2/3’s final salary are being phased out.

 

[carlzeiss]

The 11.6 Billion in overseas "climate" aid that Labour has promised to find has to come from somewhere , pensioners are just the start

Ed Miliband says Labour will honour pledge of £11.6bn in overseas climate aid

Energy secretary seeks to reestablish UK as a global leader on the climate crisis with meeting of Cop presidents

www.theguardian.com

 

[drew]

Just imagine for a moment that there really is a £20b "black hole", and just imagine that the Labour sleuths had spotted it before the election.
Now just imagine Reeves and Starmer on the hustings announcing that "there is a shortfall in the budget that the Tories have not announced, but to fix it (if we win the election) we will immediately cancel a load of infrastructure projects, cancel winter fuel payments for most pensioners, and in October we will raise taxes."
I don't think so.

And just imagine if the Tories had won, against their expectations and then have to announce massive cut backs in the public sector to cover the shortfall and to cover the tax cuts they claimed they were going to make!!!

 

[WATFORD zero]

Just imagine for a moment that there really is a £20b "black hole", and just imagine that the Labour sleuths had spotted it before the election.
Now just imagine Reeves and Starmer on the hustings announcing that "there is a shortfall in the budget that the Tories have not announced, but to fix it (if we win the election) we will immediately cancel a load of infrastructure projects, cancel winter fuel payments for most pensioners, and in October we will raise taxes."
I don't think so.

That is some imagination you have there. Maybe a future in fiction and fantasy calls

 

[Greenbag50]

If you had inherited your house without 'having to work for it' - what would be your view then?

Your kids will be in that position in the future I guess? If there was no IHT then they won't have been 'taxed once' on their assets that you left them. That's really what inheritance tax is - it's a tax on the inheritors' gain - not a second tax on you.

The money by which you paid for the house originally has already been taxed through a mortgage financed mostly through PAYE, NI, VAT on fees, stamp duty etc.
How many times and different ways should the same £ be taxed?

 

[Greenbag50]

would your kids feel the same pride as you do if they also managed?

I’d hope so. It’s what we I still in them and my son is on target to get 12 good grades in GCES this year. Far better than me.