State pension in britain

It`s an insult really nipsmum.
Save it up for a year and you can go on a £20.80p spending spree.

I am wary that if it is called a benefit, the next thing is the benefit is means tested.

It is called a benefit.

That was explained to me most clearly in the letter I received many years ago.

The State Pension is described in legislation as a “benefit” in order to root it within the existing social security framework as a statutory scheme paid out of monies in the National Insurance Fund.

silverlining48

We have probably the lowest state pension rates by far, in the western world. Twas ever thus, and those of us who retired before 2016 get even less. That is why ( in my ever so humble) the triple lock must be kept so we dont drift back to those hard times in the 70/80s when pensions were even lower.
Nipsmum, enjoy your 40 p. A packet of crisps maybe? Eat slowly.

My pension was higher under the old system, depends if you had much for SERPS or S2P

Callistemon

^I am wary that if it is called a benefit, the next thing is the benefit is means tested.^

It is called a benefit.

That was explained to me most clearly in the letter I received many years ago.

^The State Pension is described in legislation as a “benefit” in order to root it within the existing social security framework as a statutory scheme paid out of monies in the National Insurance Fund.^

Thank you for explaining.

Doodledog

Fennel

Should the state pension be classed as benefit?
If so would we get more?

If is classed as a benefit, despite the fact that most of us have paid for it for decades (and yes, I know that the actual money we paid was used to fund others' pensions, but others are now paying the NI that should be used to pay ours).

The danger with that is that should an unscrupulous and uncaring government choose to do so they could means test it, so that anyone who has also paid into an occupational pension would not qualify, whereas it would be paid to those who contributed to neither.

To an extent, it is already means-tested. For example, I can never be eligible for Pension Credit because my occupational pension plus state pension are more than the eligible amount. Of course that means that I can never be eligible for a free TV licence, free dental care or the top up fuel allowance, etc. There will be others in the same situation.

Can I also add that all benefits operate on the same principle. The vast majority of people who claim benefits at some point in their lives have contributed at one time.

When the government claims that eye-watering amounts are spent on benefits and people start jumping up and down, what is usually omitted is that the biggest share, by far, is spent on pensions and other benefits for the retired.

theworriedwell

silverlining48

We have probably the lowest state pension rates by far, in the western world. Twas ever thus, and those of us who retired before 2016 get even less. That is why ( in my ever so humble) the triple lock must be kept so we dont drift back to those hard times in the 70/80s when pensions were even lower.
Nipsmum, enjoy your 40 p. A packet of crisps maybe? Eat slowly.

My pension was higher under the old system, depends if you had much for SERPS or S2P

It doesn't affect me, but I'm fairly sure there are transition arrangements in place for those who would have received more under the old system.

Growstuff sorry if I wasn't clear, I do get the higher amount from the old system, I just meant it wasn't always true that people get more now under the new system.

theworriedwell

Growstuff sorry if I wasn't clear, I do get the higher amount from the old system, I just meant it wasn't always true that people get more now under the new system.

Aha! I understand.

*To an extent, it is already means-tested. For example, I can never be eligible for Pension Credit because my occupational pension plus state pension are more than the eligible amount. Of course that means that I can never be eligible for a free TV licence, free dental care or the top up fuel allowance, etc. There will be others in the same situation.

Can I also add that all benefits operate on the same principle. The vast majority of people who claim benefits at some point in their lives have contributed at one time.*
Yes, I know, and my feelings about means testing are the same across the board.

The trap that people are in because they saved for an occupational pension and that stops them from getting the benefits associated with pension credit is a perfect illustration of why I feel it is so unfair.

I have a few years to go before I get a state pension, so am living on a small occupational one and topping it up with savings. I find it galling that because I am not on benefits I don’t get reduced entry to places or courses that those on benefits do, despite the fact that my income is low.

I also think that it is invidious that whereas pensions are counted as benefits for administrative purposes, it is, as you say, only pension credit that is a passport to other payments. My MIL falls foul of this (she is nearly 100 and lives at home) as she has a small occupational pension, whereas her neighbour who never worked gets pension credit and all that goes with it. To me, it is the same principle as some but not others paying for care homes, and you know how I feel about that?

I am not eligible for those extra benefits either but I feel so grateful that I have enough coming in that I am not eligible.

I would not swap my having an occupational pension for being eligible for those benefits.

Nobody is suggesting that you should, Elderlyperson, but you are not lucky to have your own pension coming in - that is a line fed by those who want to keep people in their place and not allow them to ‘better themselves’ - you paid for it, so there is nobody to be grateful to.

I agree that it is better to have your own means of support, but it is a sad state of affairs when people like my MIL have to see her friends getting allowances galore because they get pension credit and she gets only the old state pension because she and my late FIL made provision for their old age.