Pensions ,Prescriptions & Racheal Reeve’s

I have a friend who has lived in Calpe, Spain for many years and will get the full WFA as the Government say they cannot means test ex-pats

Sarnia I’m not sure how your friend can get the WFA in Spain?

According to the Government website, and other reliable sources, Spain is one of the countries where British ex pats do not qualify for this benefit, because of the mild winters.

I don't think Labour itself knows what it is going to do, and I believe some of these 'suggestions' are floated to test the reaction; the anger at the removal of the winter fuel allowance seems to have astonished them.
Having announced the £22 billion black hole which the Treasury will neither verify nor deny, they have to be seen to be doing something.
Most of this is speculation fed by Tory press scaremongering which is the alternative to Daily Mail speak,
Time for a more original defence.

Allira

^Many younger people (check out Mumsnet) who have crippling mortgages, low wages and high childcare costs can see no reason why people of all income levels should get a benefit to pay their fuel bills, or why people of working age should get free prescriptions based purely on age when younger people have to pay for them.^

I can understand that point of view BUT the crux of the matter is that the WFA being taken away from the majority of pensioners means a reduction in income. How many other groups are having a reduction in their salaries or wages?
That is what is unfair.

Crippling mortgages? Oh yes, I remember those in the 1980s.

The winter fuel has never been a part of the state pension so cannot be considered income. How many other groups have had a rise in their incomes of 18.5% since 2023.

In 1983 the average house price was £25,500 and the average salary was £8,500, a factor of 3; in 2023 the average house price was £285,000 and the average salary was £35,000, a factor of 8. In addition until 2000 tax relief could be claimed on mortgage payments. There is no question which group had it hardest where house purchase is concerned.

Cossy

NotSpaghetti

I never understood why prescriptions are free at 60.
Why?

I too am not sure why the prescription charges weren’t altered in line with all pension changes, it didn’t make sense.

I’m simply going to wait for the budget now before making any judgements.

I’m not totally impressed thus far, but feel I still need to give this govt a fair chance and it would actually be good to hear some of the positives being out in place.

There are NO positives whatsoever. Sorry for shouting.

That entirely depends on our viewpoints Freya5, and you can speak only for yourself. I’m looking forward to the Workers Rights Bill tomorrow.

I think this measure, for example, is extremely positive

www.theguardian.com/society/2024/sep/19/domestic-abuse-specialists-to-be-embedded-in-999-control-rooms

"Domestic abuse specialists to be embedded in 999 control rooms
The measure – part of ‘Raneem’s Law’ – will speed up referral of domestic and sexual abuse victims to support services

Its actually a raft of measures if you read the detail.

The winter fuel has never been a part of the state pension so cannot be considered income

Well, I do realise that!
I'm not daft.

That's why these extras are not incorporated into the SP so that they can be taken away again. First the TV licence, now the WFA.

Whether or not it was an unfair increase is irrelevant.

It was an increase and now we have a decrease.

In 1980 our small house cost £40,000 and at the time our income was ⅕th of that; the interest rate was 14% so that needs to be part of the equation too.

One fifth

I have no idea why the fraction ⅕ appeared as brackets.

And again.

Wyllow3

Its actually a raft of measures if you read the detail.

Yes, there is a lot of good stuff going on, but peoples eyes are on the gossip balls, not the change balls.

Yes Casdon. I miss WWM's quiet but detailed report of what was being done
- one might have agreed or disagreed with this or that, but it gave us a chance to discuss not speculate.

I do too Wyllow3, although I understand her reasons for stepping back.

The main difference between a young couple and retired couple Doodledog is that the young couple can work, change jobs, get promotion, move etc.

The options for many retired people are limited. We have all had the high mortgages, childcare costs, juggling work when we were young, fit and able.

Once retired if one had made what was thought as adequate provision for retirement and along comes a new Government changing the rules there is little scope to earn more money, move etc.

Sorry, but what has that got to do with stopping free prescriptions for those between 60 and 66/67? That is now working age, annoyingly. I absolutely agree that changing the pension age without due notice had huge repercussions for many women (and their partners) but that is a separate issue.

I also realise that many older people are less able to get promotions than those 'in their prime', but don't let's pretend that that is an option for all young people either? People on minimum wage, with exploitative rents and high childcare costs are not usually the ones on mapped out career paths (if such things exist anymore). The ones who have careers instead of jobs are more likely to have mortgages, and are more likely to be able to absorb childcare costs (eg via salary sacrifice or workplace creches). I just don't understand why people seem to think that two people of working age should have different allowances. Allowances for people with <£X coming in, or who have certain medical conditions, but why choose an age at which people no longer pay, regardless of circumstances?

In any case, it is speculation. I read an article in i, which is speculating about the tax-free lump sum being cut from £250k or thereabouts, and conflating that with the WFP, to say that 'pensioners who are already struggling thanks to the cut in WFP will now have to face not being able to take £250k out of their pension pots' (I paraphrase).

Come on. If someone can withdraw £250,000 (which means they still have £750k left) can anyone really say with a straight face that they will struggle as a result of not getting an extra £200 on their state pension? It's all propaganda.

This was quite funny.
metro.co.uk/2024/10/07/tories-criticised-pensioner-seen-wearing-17k-rolex-winter-fuel-video-21748871/

Jane43

Allira

Many younger people (check out Mumsnet) who have crippling mortgages, low wages and high childcare costs can see no reason why people of all income levels should get a benefit to pay their fuel bills, or why people of working age should get free prescriptions based purely on age when younger people have to pay for them.

I can understand that point of view BUT the crux of the matter is that the WFA being taken away from the majority of pensioners means a reduction in income. How many other groups are having a reduction in their salaries or wages?
That is what is unfair.

Crippling mortgages? Oh yes, I remember those in the 1980s.

The winter fuel has never been a part of the state pension so cannot be considered income. How many other groups have had a rise in their incomes of 18.5% since 2023.

In 1983 the average house price was £25,500 and the average salary was £8,500, a factor of 3; in 2023 the average house price was £285,000 and the average salary was £35,000, a factor of 8. In addition until 2000 tax relief could be claimed on mortgage payments. There is no question which group had it hardest where house purchase is concerned.

👏🏻 Thank goodness for some realism.

I know it was hard in the 80s - we bought our first house in 1979 and interest rates shot up. When we bought the next one in 1989 it happened again. We fixed at 16% as we had 2 babies soon after buying house 2, and were scared that the climbing rates would rise further - not our finest financial decision, it has to be said. Yes, it was hard. We lived in an area of high unemployment, too, and that threat hung over us through the Thatcher years and beyond.

Does that mean I want 'payback' from a generation that wasn't even born when that happened? Of course not. I don't understand the vindictive attitude that 'we had to put up with this, so so should they'. In any case, regardless of interest rates, saving for a deposit is much harder when a house costs so much, and more so when you have student debt and are also paying someone else's mortgage in rent.

Young people are the ones now paying into the system that older people take out of. I'm not saying that we shouldn't all get what we were promised (ie a pension commensurate with our contributions) but the WFP was an extra - never a right - and free prescriptions were introduced as a concession to pensioners, which people between 60 and 66 (which includes me) are not.

In 1980 our small house cost £40,000 and at the time our income was ⅕th of that; the interest rate was 14% so that needs to be part of the equation too.

You did very well from your mortgage company, then, because at that time it was more usual for the maximum mortgage to be offered to be 3x salary. No wonder you struggled to pay it...

We'd already had a mortgage with them and were able to commute some of a pension fund to afford a bigger deposit.
It was a necessary move.

Wyllow3

😂 here we go, "rumour has it".....

"I've heard that"

"I read that"

Well you all fell for Labour’s assurances that they would look after our older people and what did they do?

Nothing is guaranteed in these crazy times.

Pippa000

I never understood why if you were still working when you got to pension age, you stopped paying NI. personally I, and my later hubby, would have been very happy to continued paying this until we stopped work.

Well, I wouldn’t
I am 71 working for minimum wage in a high dementia care home..(part time)

Allira

We'd already had a mortgage with them and were able to commute some of a pension fund to afford a bigger deposit.
It was a necessary move.

The parameters are shifting then. I'm in no way saying you had it hard or not, as it's none of my business and not relevant, but comparing what is a very untypical situation to the norm for large numbers of young people is disingenuous, surely?

The cap on the lifetime allowance on pension pots was scrapped by Jeremy Hunt in 2023, Labour said they would reintroduce the cap if they won the election. It’s old news.

The WFA is not paid to all British pensioners abroad at all, including those living in Spain and France. The rules changed a while ago.
For the facts, rather than gossip go to the horses mouth:
www.gov.uk/winter-fuel-payment/if-you-live-abroad

NotSpaghetti

I never understood why prescriptions are free at 60.
Why?

Indeed, same here. Why should over 60 multi-millionaires get free prescriptions? Or anyone with a an income of over 150k, for instance.

More than happy to pay for prescriptions if it will pay for 6,500 extra doctors or even a fraction of that number.
I don't think so.