State pension petition outcome

The petition hardly got any support -
Make the state pension tax exempt - Petitions share.google/7NnBVDqJjPHjcCRKs

The state pension is not the only benefit that is taxable. Some others are based on NI contributions too. Not all benefits are tax free.

If a person’s only income is the full state pension they will pay very little tax. Unfortunately the Personal Allowance of tax free income has been held at the same level and will continue to be, bringing more pensioners into taxation. That’s where change is needed but is currently unaffordable.

Younger generations think that pensioners are well treated. Yes, we grew up in post-war poverty, suffered interest rates of 15% on our mortgages, had few of today’s luxuries, but many of us are better off in terms of money to spend than many young families are.
However, pensioners or not, the gap between those comfortably off and those struggling is huge.
I don’t know how long the triple lock will last, but at least we have a guaranteed increase in pensions each year.

Not for long.

What annoys me is the way my dear late husband’s company pension, some of which has been in my hands since his death 11 years ago, has been taxed higher and higher over the years while the government pension I get has been going up. As usual they give in one hand and take with the other.

Okay - |I am remarkably stupid and unknowledgeable when it comes to finances and allowances. My sole income is a state pension, which has, presumably, been calculated by a boffin in the Treasury. Yet another boffin at the next desk has calculated that the minimum wage needs to be increased to a higher hourly level than that of the SP, even if the minimum wage earner has contributed next to nothing. We all have to pay the same amount for utilities and a loaf of bread. Where is the logic? What am I not grasping?

dalrymple23 That's due to assumptions being made that pensioners don't have the same expenses eg mortgage, travel for employment, family costs, there will be masses more no doubt. The latest for me is the winter heating allowance. If a single household with £35k and over you are exempt. Yet a couple with say £20k each will get it even though they have income of £40k to heat the one household. Yes, there may be more cost for say two showers but the heating goes into the one property. I have neighbours who took great delught in telling me tgey will get the heating allowance even though jointly their income is £62K. Nothing makes sense these days.

None of this is particularly logical as the various systems have been devised bit by bit over the years and don’t really coalesce. New governments come along and tweak the systems but they don’t necessarily become any fairer.

Not everyone paid for it!! I have a friend who paid the “9p”
Stamp all her life and, at the end of her work life received more pension than me. They paid £2,000 for that!!
No it’s not fair at all.

My husband gets industrial injury benefit IID to help with the extra costs associated with his disability. Whilst it is not taxed my council treat it as income so we don't get housing or council tax benefit but the next door council excludes it. Universal credit also count it as incone

I am also taxed on my works pension, not my SP. It is annoying and I don't consider either pension a benefit.

However, we have had one increase in state pension this year and are due another one in April.

I own my home outright and don't have an expensive car with a long commute anymore.

I have just started paying into a savings account.

I suppose we all make choices about how we spend money but I'm not complaining...

keepingquiet

I am also taxed on my works pension, not my SP. It is annoying and I don't consider either pension a benefit.

However, we have had one increase in state pension this year and are due another one in April.

I own my home outright and don't have an expensive car with a long commute anymore.

I have just started paying into a savings account.

I suppose we all make choices about how we spend money but I'm not complaining...

I'm in the same position and fine with it. Great if the tax free allowance goes up for everybody but I don't see why it should be different for pensioners. I do t resent paying my share of tax.

4allweknow

dalrymple23 That's due to assumptions being made that pensioners don't have the same expenses eg mortgage, travel for employment, family costs, there will be masses more no doubt. The latest for me is the winter heating allowance. If a single household with £35k and over you are exempt. Yet a couple with say £20k each will get it even though they have income of £40k to heat the one household. Yes, there may be more cost for say two showers but the heating goes into the one property. I have neighbours who took great delught in telling me tgey will get the heating allowance even though jointly their income is £62K. Nothing makes sense these days.

There would be more cost for food, clothes when needed etc. Two can live as cheaply as one is a fallacy.

Our NI contributions entitle us to the state pension but they also entitle us to other benefite durin our working life such as unemployment benefit. People don't seem to grasp the fact that paying NI all our working lives doesn't pay into a personal pot in the same way as paying into a private pension does. Whatever unfairnesses are in the system we are stuck with it. The country is in a mess financially and can't afford to pay us more or tax us less at the moment. I'm glad that the winter fuel allowance is now means tested as many rich pensioners don't need it. Personally I think they could have set the cut off lower. I wish my income was anywhere close to £35,000!

OldFrill

The petition hardly got any support -
Make the state pension tax exempt - Petitions share.google/7NnBVDqJjPHjcCRKs

Hardly surprising that the outcome was what it was then! We have only ourselves to blame! (And, yes. I did vote!)

Jobseeker’s Allowance is also taxable

dalrymple23

Okay - |I am remarkably stupid and unknowledgeable when it comes to finances and allowances. My sole income is a state pension, which has, presumably, been calculated by a boffin in the Treasury. Yet another boffin at the next desk has calculated that the minimum wage needs to be increased to a higher hourly level than that of the SP, even if the minimum wage earner has contributed next to nothing. We all have to pay the same amount for utilities and a loaf of bread. Where is the logic? What am I not grasping?

I suppose someone who's working full-time will have commute costs ([parking alone is £12 / day in our nearest city & very few have employee parking), and also not have time to shop around, use coupons, etc etc. And have to pay extra to get their haircut on saturday, & not have any discounts on travel / prescriptions that pensioners will get.
So a little extra to get by on if you are working is probably commonsense, imo.

Over on Mumsnet some people are complaining about the triple lock and wanting the increase to be put into schools instead. Some of them really have it in for pensioners!

Technically, a couple of posters above are not correct that their state pensions are not taxed but other pensions are. Tax applies when total taxable income from all sources exceeds the personal allowance of £12,570. So if your state pension is £10k and your other pensions are £3k you are taxed on £430. If your other pensions are only £2k then no tax is payable on either pension.

Cabbie21

Over on Mumsnet some people are complaining about the triple lock and wanting the increase to be put into schools instead. Some of them really have it in for pensioners!

I don't envy young families- for some it is a terrible struggle to even pay the mortgage...

UK pension ranking in Europe

Cabbie21

Over on Mumsnet some people are complaining about the triple lock and wanting the increase to be put into schools instead. Some of them really have it in for pensioners!

If they cut the lock,it won’t go into schools or any other public services. Anyone who thinks it will is naive at best. It will go into paying for government borrowing or defence.

Well, it’s income - everyone is liable for income tax. Why should pensioners be exempt?
Although my response to people who are resentful about the triple lock, it to remind that the recent reductions in taxation have all focused on NI reductions, effectively increasing the relative tax burden on pensioners.

keepingquiet

Cabbie21

Over on Mumsnet some people are complaining about the triple lock and wanting the increase to be put into schools instead. Some of them really have it in for pensioners!

I don't envy young families- for some it is a terrible struggle to even pay the mortgage...

I remember that from we were a young family too.

Somehow we got through it, even though there was a swingeing 15% interest rate.
I can sympathise.

Thankyou “Sueinkent” interesting to see our pension ranking in Europe.
Perhaps the British government are hoping this will act as a long term deterrent for illegal immigrants, after all nothing else is working [think]