Pensions ,Prescriptions & Racheal Reeve’s

We will have to wait and see. Some of my friends are concerned that she may remove the 25% discount on council tax for sole occupancy homes.
Free prescriptions should come in line with retirement.
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. Not sure why but as she hardly bothers putting the heating on she will use it for Christmas presents, thanks very much!!!

Isn't putting money in your pension tax free? If so I'm not sure why it should come out tax free as well. Seems like a tax advantage to those who could afford to put money away so very different to the WFA.

Making free prescription age line up with SPA seems reasonable.

I'd like to ask the O/P what she means by

"I personally think she should be looking at long term dole dossses & while families who rely solely on benefits!"

In practical terms, what are you suggesting, NanaTuesday?

To repeat: the Telegraph rumour is not suggesting tax would be paid on all withdrawals from pension pots.

The speculation is that instead of the tax free withdrawals being 25%, it is £100.000, which works in favour of those on the lowest pension pots.

but its still all speculation!

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.

Wyllow3

😂 here we go, "rumour has it".....

"I've heard that"

"I read that"

I came off X to get away from that nonsense but clearly it’s prevalent on here now, such a shame.

rosie1959

NotSpaghetti

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

It does seem a bit odd now the pension age has increased. I don’t have any regular prescription items but my DH has a few and he used to pay the yearly certificate which was around £100 he was a bit bemused when he reached 60 and no longer had to pay when he didn’t retire until he was 66
But I suspect anything is far game in regards to the budget never thought I would see Labour remove the WFA but they have.
I suspect they may alter the tax free drawdown on pension pots but this will have to be on larger amounts or there will be one hell of an uproar.

As far as pensions are concerned, I think it's possible that people over the 40% tax threshold when they pay into their pensions won't receive the full exemption from tax. It's about time something was done about this because higher earners are effectively receiving a higher subsidy from the government on their contributions.

OK, lets be clear about the "who started"the rumour

Its in the front page of the Telegraph today.

Everyday I player news shows the front pages and gives a summary so:

"The paper's top story says the government is looking at making cuts to the tax-free lump sum savers can withdraw from their pensions (per annum).

It says the government has asked one of the country's leading pension providers to assess the impact of cutting it from a maximum of £268,275 to £100,000."

so if all this actually comes to be as opposed to speculation then its not down to "being done away with"

but setting an amount as opposed to a percentage of non-tax withdrawals.

GrannyGravy13

There has been a trend for many, many years to leak proposed budget changes/cuts to get the measure of public response.

Unfortunately the current cohort appear to be exceptionally inept at ^reading the room^

I guess it depends on which room 'the current cohort' is reading.

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.

There has been a shift from the Tories desperately clinging to votes from the over 65s to the new government trying to be fairer to everyone of all ages. That is not 'targeting pensioners'.

Anyway, it's not even been announced yet, and nor has anything been said about bus passes.

kittylester you have summed up my feelings perfectly.

Uproars tend to wash over them though. As GG said upthread - they are hopeless at reading the room and getting what matters to the people who elected them.

I am a natural Tory voter but had great hopes for this new government. I am so disappointed in their performance already. I hope the budget restores my faith but I very much doubt it will.

We've heard the rumour, no idea who started it, that being able to take 25% of your pension pot tax free is going to be done away with.

If and when it's announced, there's going to be an awful lot of people drawing it out while they can and we'll be among them.

NotSpaghetti

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

It does seem a bit odd now the pension age has increased. I don’t have any regular prescription items but my DH has a few and he used to pay the yearly certificate which was around £100 he was a bit bemused when he reached 60 and no longer had to pay when he didn’t retire until he was 66
But I suspect anything is far game in regards to the budget never thought I would see Labour remove the WFA but they have.
I suspect they may alter the tax free drawdown on pension pots but this will have to be on larger amounts or there will be one hell of an uproar.

GrannyGravy13

There has been a trend for many, many years to leak proposed budget changes/cuts to get the measure of public response.

Unfortunately the current cohort appear to be exceptionally inept at ^reading the room^

What strikes me is that all summer there have been pages and pages of speculation/criticism here in GN about bus passes being cut - with no "leaks"-

and it has all come to nothing

Rachel Reeves

Ha ha
The callers are very irate though.

Of course they are rafichagran

Lisaangel10

Rumour has it, bus passes will be next.

Rumour
Precisely

But they aren't generally so here in England Allira - though I know there are lots of "exceptions".

Wyllow3

😂 here we go, "rumour has it".....

"I've heard that"

"I read that"

They are discussing it on Jeremy Vine, Harriet Harmon is on the panel. She has stated that nothing at the moment has/will be done about it. The callers are very irate though.

NotSpaghetti

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

They're all free for everyone in Wales and Scotland.

There has been a trend for many, many years to leak proposed budget changes/cuts to get the measure of public response.

Unfortunately the current cohort appear to be exceptionally inept at reading the room

NotSpaghetti

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

It’s a hang over from when women could retire at sixty. Never been altered, possibly because people start to need more prescriptions round about that age. That’s a guess though as to why it’s never been altered.

I don't think there is any doubt that they see pensioners as easy targets. They are going to take our money one way or another and give it to the 'workers'!
Maybe issue a cull for all those over 80. Think how much money that would save. [That was a joke btw]

Rumour mongers at it again! I am surprised that Grans in here fall for it. Let’s wait till the Budget for the official versions.

Oh maybe I’m just being cynical 🤨

You are.