Pension, triple lock and inflation

when I was 16, I was promised a full pension at 60, if I worked and paid full NI, which I did.
Then, the goalposts moved and I had to wait an extra 6 years. ?
When I finally got it, I was promised the triple lock, and then that stopped this year.
Two promises broken.

Exactly the same for me too Diamond, I'm feeling like I've been well and truly shafted.

rosie1959

If they are going to introduce a windfall tax then it should be targeted to those most in need giving them a decent size boost to rising costs bearing in mind that all people in receipt of state pension are not hard up

No, but when I was 16, I was promised a full pension at 60, if I worked and paid full NI, which I did.

Then, the goalposts moved and I had to wait an extra 6 years.?

When I finally got it, I was promised the triple lock, and then that stopped this year.

Two promises broken.

I might not be particularly hard up, because DH and I paid in for good private pensions, but I would like the government to stick to the odd promise they made me over the years.?

Dinahmo wrote There is no point in increasing the personal tax allowance since many of the poorer people don't earn as much as the PA. Instead, to help those low earners they should bring in a lower rate band of 10% . If the band was £5000 then there would be a tax saving of £500.

With all due respect I disagree about having a 10% band, because people whose gross income is in the lower half of that tax band still pay 10%.

If instead of a £5000 wide band at 10% the personal allowance were raised by £2500, but the 20% rate retained, then people whose gross income is in the lower half of the suggested 10% band would then be taxed at 0% rather than 10%.

When the then Labour government announced the abolition of the then 10% band I was pleased as I thought that they meant abolition, but what they meant was conversion to a 20% band.

Give him his due, in a televised three leaders debate before the 2010 election, Nick Clegg promised raising the personal allowance to £10000 per annum if the Liberal Democrats won the general election - it was around £6500 at the time if I remember correctly - and the Liberal Democrats did not win the General Election, but did become part of The Coaliton, and the personal allowance did indeed rise to £10000 in that Parliamentary term.

The rise in the energy price cap from October 2021 is not due to become reflected in State Pensions until during April 2023.

So as things stand, as the next adjustment to the energy price cap is due on 1 October 2022, any cost of living rise caused by that will not be reflected in State Pensions until during April 2024 at best.

Doodledog

The trouble with 'targeting' any help via the pension is that it will bring it a step closer to being means-tested, which would, IMO be as big a travesty as the delay in SPA for women.

I agree that restoring this year's triple lock would be a sensible way forward (and I speak as someone with years to wait for mine).

Agreed Doodledog.

I just have this awful feeling that the triple lock for next year will be shelved again - even though they promised not to. But since when did that mean anything ?

The trouble with 'targeting' any help via the pension is that it will bring it a step closer to being means-tested, which would, IMO be as big a travesty as the delay in SPA for women.

I agree that restoring this year's triple lock would be a sensible way forward (and I speak as someone with years to wait for mine).

Happygirl79

There is absolutely no chance whatsoever of the government changing the state pension until April next year. If they increase it now it would be even more next year than they ever intend to pay as its cumulative. It would be a certain percentage of the state pension figure in place at that time. If they do anything it will be another one off council tax rebate at best

And I say this as a single pensioner on the breadline! I have to go out walking to keep warm

There is absolutely no chance whatsoever of the government changing the state pension until April next year. If they increase it now it would be even more next year than they ever intend to pay as its cumulative. It would be a certain percentage of the state pension figure in place at that time. If they do anything it will be another one off council tax rebate at best

If they are going to introduce a windfall tax then it should be targeted to those most in need giving them a decent size boost to rising costs bearing in mind that all people in receipt of state pension are not hard up

I think that there should be a windfall tax and that it should be used to bring in the triple lock for pensions and increase UC.

There is no point in increasing the personal tax allowance since many of the poorer people don't earn as much as the PA. Instead, to help those low earners they should bring in a lower rate band of 10% . If the band was £5000 then there would be a tax saving of £500.

Directors of SMEs who pay themselves a low salary and take the rest as dividends would benefit from this but a corresponding band with a tax rate of 25% which should cancel out the saving made on the 10% band.

Obviously both bands would apply to everyone.

They could, at least, restore this year's triple lock, backdated to April.

That would mean a bit more pension every week for everyone.

And, as the DWP/Pensions system is well used to paying backdated payments, and altering week;y amounts, this shouldn't be complicated at all.