We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Plan to change private pension inflation link
Comments
-
Old_Slaphead wrote: »Come on Stevie you're smarter than that.
VAT is imposed on discretionary consumption, council tax and personal tax isn't (they're based on your perceived ability to pay ie relative wealth).
Giving FS pensioners an uplift because council tax has gone up is effectively giving them a discount (whereas non-FS pensioners have to pay the full wack). That's not fair - we should all pay our dues.
Whether I have a FS pension is immaterial to my views of what is fair to the public as a whole (FWIW I don't but OH does
. I do have PPPs but they've been trashed by the Labour Party so yes, I am bitter and twisted)
I agree that VAT is based on discretionary consumption but it still has an inflationary effect on all items that are not zero rated, and therefore should be taken into account for CPI purposes. Your comment on council tax is wrong, as it is an unavoidable expense and needs to be factored into the inflation calculation - I don't know what you mean by giving pensioners 'discounts' - dicounts on council tax are not given to pensioners, only to single persons in dwellings, and council tax benefit is another thing altogether.
The key difference is mortgages, which should not affect pensioners, but all else affects everyone regardless.0 -
Is that not included in CPI? I thought that it was, along with VAT.
No housing related costs are included in CPI.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Components of the RPI & CPI:
http://www.statistics.gov.uk/articles/nojournal/CPI_and_RPI_The_2010_Basket_of_Goods_and_Services.pdf
RPI contains Council Tax (page 25), CPI does not.
This is seriously bad news. It means that if your local council increases council tax well above inflation (as they are all desperate to do) then you are totally stuffed. The only way to combat this would be to impose very strict controls on council tax increases, which would water down local government power and cause all sorts of constitutional issues.
Council tax can be a very large chunk of spending for pensioners - it should be included in the inflaiton calculations.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.7K Mortgages, Homes & Bills
- 177.5K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards