Is this an unfair VAT Tax?

The VAT is presumably going to pay for things that we all need, like the NHS, schools, roads etc.
If you remove VAT on travel insurance for older people, that could be seen as yet another perk along with free TV licences, bus passes, winter fuel allowance.
It would also be seen as a perk for wealthier old people who can afford to go on holiday anyway.
So no. I don't think it's unfair.
I speak as someone who has to fly to the States to see my DS, DiL and 2xGC and I'm very much aware of the fact that this may over time become unaffordable.

Janeainsworth,

Appreciate your views, but 82% of older people do not fall into the wealthy category unless they release tied up property assets. The discussion yesterday highlighted those who were able to take holiday breaks were the least likely to need hospital and care needs by keeping active. Public Health England highlighted the considerable saving on NHS and Council expenditure, so there is another side to the coin on this subject. In the SW the report today highlights the number of older people living in poverty has increased particularly in Devon, Cornwall and Somerset, so we need to also focus on those aspects as well.

Suppose it is a choice between needs, a holiday or heating a home , which need is greater

Surely by definition, those retired people who are able to afford a holiday are also able to afford to heat their homes properly, eat well, socialise etc, all of which are proven to help with mental and physical health in older age. I dont agree that there should be exemption of vat on older people's travel policies, what about younger people with serious health conditions? They will also pay hefty premiums plus vat and could possible have less income than someone retired. I do not wish to throw cold water on your campaign, but the impending threat of the loss of AA to future generations of retired people will be more serious, for more people.

The discussion yesterday highlighted those who were able to take holiday breaks were the least likely to need hospital and care needs by keeping active

I would suggest that this group also includes the socio economic group who statistically make fewer demands on the NHS bcause of better nutrition throughout their lives, healthier lifestyles and in many cases private health insurance either as retired employees still entitled to company schemes or privately funded.
No.There are much more urgent needs to be met by the elderly on fixed and/or reduced incomes - heating, food, safe transport, and meeting bills, than holiday insurance. Travel abroad doesn't come all that cheap, so for those who can afford it, the element of insurance should not rule it out. Let's face it, holidays in the UK would not involve the sort of travel insurance quoted. Unrealistic IMHO.

I do agree with Alea. One can keep active by walking in one's own area, a holiday abroad is not a necessity for fitness, a decent diet, a warm home are to avoid malnutrition and hypothermia

I can't follow your logic granddaughter
but 82% of older people do not fall into the wealthy category unless they release tied up property assets
So you are advocating a tax break for the 18% who are classed as wealthy, at the expense of the less well off?
I agree with alea and annie, that the VAT on travel insurance for foreign holidays is a very small part of the cost of a foreign holiday.
After all, older people can take holidays whenever they like, compared to families who have to go in school holidays and pay a premium. The extra cost to families taking their holidays during the school holidays must far outweigh the VAT on travel insurance.

Agree with others on this subject,if we can afford the foreign travel we can afford the travel insurance.

Thanks for all the comments, I just felt the views expressed yesterday that individuals with poor health should not be penalised in having to pay more for Travel Insurance (TI) by incurring 20% VAT, ( incidently TI is not for just for abroad it is now common for UK Tours and other types of Travel needs), was a decent reasonable view.

Because I am presently in good health my travel insurance is low, I can also afford a good range of holiday abroad, but I don't want to put the possiblity of a holiday abroad out of the reach of people in lower income brackets or sick or disabled because of carrying even further additional costs .

I believe it would be a very selfish of me to ignore the additional VAT on those extra premiums that the disabled and those with failing health presently are forced to incur, I wonder if that is fair tax on the sick?

I am sorry, but I cannot agree with the views expressed that the poor should not be travelling abroad. What about those who want to visit family members, friends or even take a short break, they all require the desirability to travel with insurance cover? How often do we see adverts highlighting far cheaper breaks than here in the UK, then find the sick and disabled are expected to add a considerable further tax amount because they are unfortunate in having poor health

The majority of disabled people and individuals with poor health well understand the cost of the extra insurance cover, that is a fact of life for most of them. What is difficult is understanding why the Government imposes an even further heavy VAT costs upon their extra premiums.

It surprise me how many abled bodied tend to ignore the burdens of ill health and disablity and those individuals desparate for a fuller ordinary life style. Far to often the more fortunate of us take for granted our own comfortable life styles and ignore the difficult lifestyles others face through no fault of themselves.

To ignore such needs reminds me of the saying "I am OK alright Jack, sod you".

That 's not for me, thank God!!!. Remember none of us know what is round the corner, financially or health wise , it could chage over night.

Actually Grandaughter you are wrong; nobody on here said that the poor should not be travelling abroad. While I appreciate that you feel the vat on TI is unfair, it is unfair for everyone, not just the elderly. I still maintain that the reasons for better health in those who go on holiday is because they also have the income to also eat better, enjoy hobbies, keep their homes warm.

Many on here do face the trials and tribulations of ill health, and it is unfair to dismiss all as comfortably off, complacent or of thinking " I'm alright Jack, sod you."

The poor cannot afford to travel abroad, the poor can't afford I ho,I dsy in this country

I know of a couple both in their 70's who often take a 12 week holiday to Malta during the winter months, they seem to get very reasonable all inclusive deal, and must be saving on heating.

Personally, I can't think of anything that I would like less, but each to their own!

I shall get off the subject that was very important to other older people, but seemingly not the grans on this page, incidentally I did cover all disabled and sick people and not just the elderly.

I still believe it be an extra unnecessary tax upon the sick and disabled who have to meet that extra cost.

Grandaughter VAT is an unfair tax in that poor people pay the same rate as rich people for everything from sanitary towels to clothing to a meal in Macdonalds.
Why have you got such a bee in your bonnet about travel insurance?

I've only just seen your last post, granddaughter
Your OP talked about older people and didn't mention younger sick /disabled people at all.
I find your implication that those who have posted on this thread uncaring to be offensive.
I suspect your motive for posting in the first place was to provoke responses which you could then claim were uncaring.

You did inky speak of the elderly with no mention of young disabled people

My 40 year-old daughter would willingly pay that extra element of tax on TI if ever she thought she'd be well enough to have a holiday!
Many older people are able to afford well-earned holidays but the younger disabled less so. They too would have to find the extra demanded to cover existing conditions.
This would not be an issue high on my priority list.

Janeainsworth, don't be so pompous and offensive in your assumptions.

I deliberately mentioned all disabled and sick, which covers ALL age groups, the reference to older people was covered in the early threads, they were relative to the comments made at a seniors Forum where the subject was aired. Not my words but those of people present.

It amazes me how nit picking you can be on what is suppose to be a subject of helping those sick and disabled people less fortunate than the abled body.

Your latter sentence is unworthy of any fair minded individual.

Good night

I think this is a non- issue or at best one so far down the list of priorities for any benefits to be negligible.
1) at a time when free bus passes themselves often a lifeline for many elderly people especially if they have had to give up driving or may not be able to afford to run a car, are under threat due to council cuts, is it not rearranging the deckchairs on the Titanic to fuss about VAT on travel insurance?
2) I imagine any savings would be negligible, but given that tax revenue has to come from somewhere where do you suggest raising the lost revenue?
3) day centres for the elderly, for those in stroke or cardiac rehab, for those with dementia , are desperately needed and usually few and far between. How can a cut in VAT on foreign holiday insurance be justified?
4) I have every sympathy with older parents and grandparents whose families live on the other side of the world, but it is the cost of the fare and the insurance, not the VAT rate which influences the affordability or otherwise of travel.
No, I am highly suspicious that this topic has been raised to enlist support for a campaign which would be very harmful to the image of the elderly, already pilloried in some areas as spongers, living the life of Reilly while their children struggle to get a foot on the housing ladder.
There have already been muttering a about "inducements"(?) for the elderly to downsize and free up family homes for the next generation.
Playing Devil's advocate??

Yesterday I was at a Health meeting where they were talking of the huge benefit of holidays for older people. There was considerable criticism of the high cost of travel insurance for over 70's & 80's

No mention here of the young disabled, or chronically sick

The discussion yesterday highlighted those who were able to take holiday breaks were the least likely to need hospital and care needs by keeping active. Public Health England highlighted the considerable saving on NHS and Council expenditure, so there is another side to the coin on this subject.

Granddaughter as jane says VAT is unfair in that the rich pay the same as the poor. But surely the real point is the high cost of insurance for older people, even those relatively fit and healthy. You only need to have one health condition to be ineligible to take advantage of cheaper online insurance and then the premium goes up. So someone paying insurance in the four figure price range is not going to be particularly fit and healthy. Their conditions may be under control, but they do have those conditions.

Off the top of my head I can think of 5 friends or relatives who have needed medical treatment when they were abroad on holiday, 2 of them for serious conditions not previously diagnosed. All of them are over 65.

So as things stand, VAT is relative to the purchase and I definitely don't think older people should get any further breaks from government. Not when others are struggling with the changes in legislation that make it harder for them to pay the bills, let alone afford a holiday.

Excellent post Alea. Actually I still think Granddaughter is Realgranddad posting under a different ID.

Hmmm.

I have asked that question on the Grandads Shed Forum.

Insurance companies are not a charity they are a business. If you have a house on a cliff you will pay more than if you have a house on the flat, even then there are so many equations that have to be taken into account but common sense tells you if you are more at risk of making a claim then your premium will be higher, sods law isn't it.

I have to pay extra for my holiday insurance and yes it is a b-----y annoyance but I understand why. I have to agree with other posts and age does not come into it .

Exactly POGS all insurance premiums are calculated on an actuarial basis and there is a reason why young drivers' car insurance premiums are sky high and older travellers' insurance more than for younger people.
However, if granddaughter is merely talking about the rate of VAT applied, then this raises a whole new question. I believe "essentials " were initially intended to be zero rated , does that still apply to children's clothing? I have a feeling it once did.
But foreign travel for the retired? Unlikely.
Oh wouldn't it be luvverly but many many elderly people still wouldn't be able to afford that holiday or cruise or be well or mobile enough to go abroad. Let's address the basic issues like poverty among the elderly first!