Pensions ,Prescriptions & Racheal Reeve’s

Doodledog

Would cutting the tax free sum limit mean that fewer people would take out a lot of money and leave themselves without enough to live on, so end up claiming benefits? Or is it that pension contributions are tax free when made, so the idea is that you pay tax when it becomes income?

Sorry if that's nonsense, but I didn't need to think about that sort of thing as my occupational pension was a fixed amount based on salary, and I had no say over how much lump sum I took (Mr D's was the same). I don't really understand the motive behind possible cuts to the lump sum, and think it's important to understand that before deciding whether I think it's a good idea or not.

I assume this is the case and I see no problem with it being limited. My pensions are all public sector - NHS and LGPS - so I couldn't take anything until I retired and took the pension, but part of the overall amount could be taken as a tax free lump sum, so the only difference was that I couldn't dip into it early. Restricting the tax free amount seems fair enough as the contributions are tax deductible in the first place.

I agree with the WFA being means tested as many people received it who were very comfortably off. Unfortunately I think that making the cut-off those on pension credit will leave many people above that level seriously struggling, but to properly means test it would be costly administratively.

I still remember my in-laws refering to themselves as 'poor pensioners now' when FiL retired, despite them being far better off than we were at the time with two children and a big mortgage! MiL is still probably vastly better off than me as my pension income is much lower and I still have a small mortgage, so she definitely doesn't need the WFA. I'll survive with out it, just having to be even more careful than I already am, but some won't!

Thanks Wyllow and Doodledog

Yes, indeed newnanny, I was responding to Angelnan’s post which didn’t mention the WFA or train drivers’ pay rise.

Hence, I’m somewhat mystified by your comment newnanny.

www.nhsbsa.nhs.uk/help-nhs-prescription-costs/free-nhs-prescriptions#:~:text=You%20are%20automatically%20entitled%20to,related%20Employment%20and%20Support%20Allowance

newnanny

@lizxiedrip, how can it be Conservatives to blame for cutting WFA from pensioners when Conservatives did pay it and Labour have immediately cut it whilst giving train drivers already earning £70k per annum a big pay rise? It's almost as if you don't want to face the actual facts.

Lizzieis not saying that the Conservatives are to blame for WFA, which is a drop in the ocean compared to the things they cut. She is responding to Angelnan's post about the rising retirement age and the resultant disconnect between that, the need for carers, the benefit system and the reluctance of employers to take on people of 60+. It's almost as if you didn't read the post.

Good posts Angelnan (although I agree with LizzieDrip about it not being possible for the new government to have sorted things out in the time they've had), and also Romola.

If you have a few minutes, you can see if your daughter is eligible.

check-for-help-paying-nhs-costs.nhsbsa.nhs.uk/start

newnanny

@lizxiedrip, how can it be Conservatives to blame for cutting WFA from pensioners when Conservatives did pay it and Labour have immediately cut it whilst giving train drivers already earning £70k per annum a big pay rise? It's almost as if you don't want to face the actual facts.

Lizziedrip was discussing Angelnan's complex and painful situation as regards being able to be a carer and find reasonable work and keep afloat financially,

which is sadly a situation for many which has been a problem for a very long time and therefore LD suggested its was perhaps unreasonable to blame Labour for a quick fix.

Her situation didn't in anyway relate to WFA or for that matter rail pay rises.

icanhandthemback But surely if her total income is below about £14,000 a year and she has minimal savings, she should be eligible for an HC2 certificate. Have you checked?

The Conservatives used to favour pensioners because in later life, people tend to become more right-wing, also because pensioners are more likely to vote than other age groups.
Labour needs to appeal to the working-age population, some of whom have voiced resentment at the Conservatives' generosity to pensioners.

growstuff

icanhandthemback

I'd like to see free prescriptions set at the retirement age BUT maybe more items that are free for those suffering extensive age related conditions. Also, I'd like to see more exceptions for congenital conditions. My adult children all suffer from a systemic syndrome where they suffer from a variety of things needing treatment from replacement saliva, eye drops. digestion meds, some vitamins and hefty pain killers as a minimum. My daughter can't work but receives income related incapacity benefit which means that she is low income but too high for free prescriptions. This means she goes without what she needs. She will need all the things all her life and not taking what she needs costs the country more.

Is incapacity benefit over the limit for an HC2 certificate?

Sorry, I should have said that it is ESA she claims. You can only get help if you are on income related ESA, not contributory.

Nana Tuesday. I totally agree with you, I have also asked why prescriptions aren’t in line with pensions, however she should also target ax you say the people where whole families don’t work and rely on benefits and yes before you target me I have many experiences of this including in my. Own family , Labour won’t target them as they are their core voters

Casdon

I wonder how the pension credit is assimilated into pensioner income? My impression is that the people who are struggling the most aren’t those with the very lowest incomes, because they do get pension credit. It’s the people who get a little bit more than that, but who aren’t entitled to any help. That’s why raising the pension credit threshold and the personal allowance would make a big difference?

Yes, even those with an income above the threshold for any help at all but who may be paying rent may be struggling and frightened to turn on their heating.

I think it would make a difference although many do not claim pension credit now even though they are entitled to it.

NotSpaghetti

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

I never understood

^As of August 2024, the prescription charge in England is £9.90 per item, but there are exemptions available. Wales, Northern Ireland, and Scotland no longer charge for prescriptions:
Wales: Abolished prescription charges in 2007
Northern Ireland: Abolished prescription charges in 2010
Scotland: Abolished prescription charges in 2011^

@lizxiedrip, how can it be Conservatives to blame for cutting WFA from pensioners when Conservatives did pay it and Labour have immediately cut it whilst giving train drivers already earning £70k per annum a big pay rise? It's almost as if you don't want to face the actual facts.

It makes more sense to me to say all people over 60 we ho still work can pay for their own prescriptions and as for WFA which I agree many pensioners do not need but many do rely upon and need to stay warm it makes sense to me to say no more WFA for 40 percent tax payers but anyone paying 20 percent tax or lower should still get it. The problem as I see it is not many pensioners vote Labour so they are an easy target for RR as it would not affect their vote share in next GE. If she targeted other groups who traditionally are more likely to vote Labour future votes would be more affected. What I don't think RR foresaw was the unions and general public backlash for cutting £200 WFA from pensioners whilst MP's still claim anything up to £4k per year free fuel on second homes.

Angelnan I empathise with your situation and I wholeheartedly agree with your post … apart from your final sentence.

You were not stupid to vote Labour IMO.

Most of the issues you describe have arisen due to the Conservative government - not Labour. I’m sure you didn’t expected Labour to turn things around in a matter of weeks!

Voting Conservative would be voting for more of the same - or worse.

My sympathies - this must be fairly common, what do you suggest should happen? I'm not clear what measures would have helped you that Labour have specifically neglected?

The issue as I see it, only my opinion, is that the pension age continues to rise. While life expectancy is commensurate with that, freedom from debilitating illness and disease is not. Are people working heavy manual jobs, or even as my self in demanding healthcare positions expected to act as a 20 year old? There is poor provision for those unable to continue their previous jobs due to illness. Sickness benefit is minimal. While medical research gives options they are not freely available due to cost. Do we really expect 70 year olds on scaffolding. Retraining opportunities are scarce in our age group. I’ve applied for 100s of positions well below what im training for because I am no longer able to fulfil my previous role. I acknowledge that. But I also provide unpaid child care for my grandchildren, am a registered caregiver for my older husband , which means I can only earn £125/ week without losing the huge £85/ week benefit for a minimum of 35 hours/week care the state doesn’t provide. No employer wants me with so little flexibility. So im basically unemployable with 5 years till I receive my delayed state pension. Then carers allowance stops… but I will still be doing it. To consider us non productive members of the workforce is a huge insult. I voted labour, first time ever.
How stupid was I

MaizieD

growstuff

MaizieD

Look at the source I posted.

I can't. None of the links posted today on N & P are working for me🙁

Hmmm! No idea why not. They're working for me - I use a PC.

Thanks. I've tried them on my laptop and on my Ipad. I've even tried copying and pasting them. Nothing works...

Perhaps it's my ISP....

But links from other sites are working fine...

Sorry, I can't help you.

I guess you could copy and paste the links into your browser.

icanhandthemback

I'd like to see free prescriptions set at the retirement age BUT maybe more items that are free for those suffering extensive age related conditions. Also, I'd like to see more exceptions for congenital conditions. My adult children all suffer from a systemic syndrome where they suffer from a variety of things needing treatment from replacement saliva, eye drops. digestion meds, some vitamins and hefty pain killers as a minimum. My daughter can't work but receives income related incapacity benefit which means that she is low income but too high for free prescriptions. This means she goes without what she needs. She will need all the things all her life and not taking what she needs costs the country more.

Is incapacity benefit over the limit for an HC2 certificate?

janeainsworth

^Now there is mention of tax on taking money from your pension pot !^

So it should be. The money placed in a pension pot hasn’t been taxed.
We pay tax on income from private pensions so what’s the difference?

This has been discussed at length above. It refers to tax if you decide to take money out of your pension pot,

and is already taxed

It's a question of how much, and whether it should be a set fixed amount kept tax free or a percentage. See the discussion on page 2.

I am taxed on my personal pension already

growstuff

MaizieD

Look at the source I posted.

I can't. None of the links posted today on N & P are working for me🙁

Hmmm! No idea why not. They're working for me - I use a PC.

Thanks. I've tried them on my laptop and on my Ipad. I've even tried copying and pasting them. Nothing works...

Perhaps it's my ISP....

But links from other sites are working fine...

Now there is mention of tax on taking money from your pension pot !

So it should be. The money placed in a pension pot hasn’t been taxed.
We pay tax on income from private pensions so what’s the difference?

Wales and Scotland and illegals get free medication so why pick on ENGLISH???

I'd like to see free prescriptions set at the retirement age BUT maybe more items that are free for those suffering extensive age related conditions. Also, I'd like to see more exceptions for congenital conditions. My adult children all suffer from a systemic syndrome where they suffer from a variety of things needing treatment from replacement saliva, eye drops. digestion meds, some vitamins and hefty pain killers as a minimum. My daughter can't work but receives income related incapacity benefit which means that she is low income but too high for free prescriptions. This means she goes without what she needs. She will need all the things all her life and not taking what she needs costs the country more.