State pension changes?

diolch

I'm lost in all of this!

My wife gets £56pw OAP and has done so for the past 7 years. I will retire at the end of June 2014 and on todays figures (had a pension estimate from the DWP) I will get £166.23pw OAP. This new pension thing will only relate to those that retire after 5/4/15. I am glad I retire earlier as I stand to lose - £166.23 - £140.00, £26.23pw!!

I can't see what the argument is really, no couple, both retired are on less than £209.70 currently. With disability additions, carers, savings credit etc that figure will go way way above £300pw!! The same as what is proposed. That is unless they have other monies coming in - private pensions, wages and capital. If they do, surely they should be self sufficient and use that income and capital to live off to make it up to £300pw?

Where is there a problem in all of that. All they are doing is moving the goal post a bit, calling it a different name but you still get what you have always had.

Errata

Where is there a problem in all of that.

Many people will never need attendance allowance or carers allowance, if that's what you are referring to.

diolch

Errata wrote: »

Many people will never need attendance allowance or carers allowance, if that's what you are referring to.

Maybe not, but what I was trying to show is that everybody is creating spin saying that pensioners only get £102.15 currently whilst the new scheme will give £140 +.

For a start any single pensioner can currently claim Pension Credit top up to make the amount £137.35. Not a great of difference between that and £140 is it - £2.65?

And besides which under the new scheme it is limited to a max £140, as there will be no more Pension Credit for new claimants. So, those with disabilities, carers or housing costs (mortgage) will get more than the £140 won't they?

Oldernotwiser

diolch wrote: »

Maybe not, but what I was trying to show is that everybody is creating spin saying that pensioners only get £102.15 currently whilst the new scheme will give £140 +.

For a start any single pensioner can currently claim Pension Credit top up to make the amount £137.35. Not a great of difference between that and £140 is it - £2.65?

And besides which under the new scheme it is limited to a max £140, as there will be no more Pension Credit for new claimants. So, those with disabilities, carers or housing costs (mortgage) will get more than the £140 won't they?

You're missing the point that the SRP (whatever level it's set at) is in addition to any private/occupational pension. You only get Pension Credit if you have nothing (or virtually nothing) else. You can't compare the two.

diolch

Oldernotwiser wrote: »

You're missing the point that the SRP (whatever level it's set at) is in addition to any private/occupational pension. You only get Pension Credit if you have nothing (or virtually nothing) else. You can't compare the two.

Yes I know that. But what you seem to be suggesting is that there should be an increase from £102.15 to £140.00, but accept that Pension Credit is done away with as well.

Additionally a wife should get an increase pro rata to the years of contribution.

Ignoring any payments for a wife, what are you saying - all pensioners be given approx £2,000 increase a year! Oh you can't be serious. That will cost a fortune especially in todays economic climate. Everybody is suffering reductions, yet you are condoning a 27% increase across the board for all pensioners.

So say that happens, and Pension Credit is scrapped. Who is going to pay the £70 per week payment for the mortgage that someone was getting in additon to the £137.35 Pension Credit/OAP?

A single guy on Pension Credit with a £100,000 mortgage would be getting £207 per week. A lot more than the £140!

Daney

This government has not only betrayed existing pensioners with this new pension scheme, it's about to hit some pensioner couples who are also receiving Pension Credit, if an amendment in the Welfare Reform Bill goes through parliament in it's present form, see below.

"Quote"
Welfare Reform Bill Explanatory Notes:
Page 22 145. Paragraph 64 amends the State Pension Credit Act 2002 so that a member of a couple who has attained the qualifying age for state pension credit may not receive state pension credit if the other member of the couple has not attained that qualifying age. This is to ensure that all claimants who have not attained the qualifying age for state pension credit are required to claim universal credit and, if appropriate, be subject to work-related conditions of entitlement.

But if you are single you will still be able to claim when you reach qualifiying age.

At the moment I receive Pension Credit but it looks as though this will change soon as my wife is ten years younger than myself and with her retirement age going up we will not qualify again until I am 77, this makes for a poverty stricken retirement.
Thanks a lot Cameron!!!