Cutting state pension payments.

lilac_lady

Can the government legally reduce state pension payments (and other benefits) if things get worse economically?

chesky369

The state pension is a set amount and, at present, if you've paid enough NI contributions, you're entitled to it. It's not a benefit, means tested, as such. If things get really bad economically, then whichever government is in power could, in theory, introduce any measure it likes to cope with that - reducing pensions, cancelling benefits, anything it thinks it can get away with. Wouldn't lose sleep about it though - if things get that bad, we're better off dead anyway.

dzug1

The government makes the laws - it can do what it wants and legislate that it's legal.

In practice there are constraints of course - EU law, getting MPs to vote for it, fear of riots, etc.

Biggles

dzug1 wrote: »

In practice there are constraints of course - EU law, getting MPs to vote for it, fear of riots, etc.

For pensions, fear of riots must be the key.

"What do we want?"
"Er, can't remember"

"When do we want it?"
"What?"

"Why am I here?"

ceridwen

dzug1 wrote: »

The government makes the laws - it can do what it wants and legislate that it's legal.

In practice there are constraints of course - EU law, getting MPs to vote for it, fear of riots, etc.

I've wondered whether they might "try that lark":mad:. I think the above post is the crux of the matter though - speaking as one of the people who would be out rioting on the streets about it myself if it came to it - and nope I'm not joking about that - I would certainly be taking action:D

I think that is what boils down to in the event - the Government weighing up just what percentage of the population would have no qualms whatsoever about what they did to retaliate if they try anything like that(short of violence against people of course I hasten to add). So - lets hope its a reasonable percentage that wouldnt just sit there and moan.

We've all read enough by now about JUST how much of our money has been handed over to the bankers after all....

PolishBigSpender

lilac_lady wrote: »

Can the government legally reduce state pension payments (and other benefits) if things get worse economically?

Sure, why not? It's hardly uncommon practice in the world - Poland has just recently given part of the compulsory private pension (don't ask me to explain...it barely makes sense for us!) into the public pension fund - because the public fund has a massive hole.

It wouldn't actually surprise me if the UK had to cut pensions - as I recall, the UK has spent tomorrow's pensions on today's pensioners.

It's always struck me as odd that the UK system is a set amount - the Polish system is based entirely upon how much money you paid in during your working life, with a tiny guaranteed amount.

seven-day-weekend

PolishBigSpender wrote: »

Sure, why not? It's hardly uncommon practice in the world - Poland has just recently given part of the compulsory private pension (don't ask me to explain...it barely makes sense for us!) into the public pension fund - because the public fund has a massive hole.

It wouldn't actually surprise me if the UK had to cut pensions - as I recall, the UK has spent tomorrow's pensions on today's pensioners.

It's always struck me as odd that the UK system is a set amount - the Polish system is based entirely upon how much money you paid in during your working life, with a tiny guaranteed amount.

So is the UK one : the full basic Pension is £95 a week if you have paid a full amount of NI. You may get more than that if you have S2P (an earnings-related part), or you may get less than a full Pension if you have not paid enough NI.

The difference is, I think, is that the Basic State Pension is made up to £130 a week for a single Pensioner, or £200 for a couple, by Pension Credit if their total income from all sources is below these amounts. You get this even if you have paid no NI at all.

I do not think the Governmemt will reduce Pensions.

lilac_lady

I sometimes listen to Radio RTE1 from southern Ireland and I'm sure that I heard that the State had cut pensions there. Does anyone know if that's happened?

chesky369

I think they have indeed made cuts in the Irish state pension since the 'celtic tiger' collapsed in a big way.

chesky369

If there was such a suggestion here in the UK I do think there would be a huge reaction - don't anybody forget that the generation taking its pensions now is the very same generation that is used to taking to the streets in demonstration.

seven-day-weekend

Good point chesky.

I do not think the basic Pension will be reduced, but any means-tested additions could be reduced or withdrawn. This is why I think it is unwise to depend upon means-tested Benefits rather than make your own provision if you have the choice. They can be easily withdrawn at any time.