MSE News: Budget 2012 - £3.3 billion tax blow for pensioners

jo444_2

My mother has been in a residential care home for 4 years after poor care in a nhs hospital. I have had to pay for this out of the proceeds of selling her flat and that will soon reach the £24000 level when there is a small contribution from the government. Also because of a number of strokes she has had, she is likely to need nursing care so the weekly cost will rise from £525 to £850. Yes there is attendance allowance but out of the £300 or so increase per week that will pay for £105 of it meaning her money will go down even quicker.
Not really a thanks to my dad who was a desert rat in WW2 and brought his house and saved money for them to have a lovely retirement - a struggle as he was a postman and she a nurse.
So to those who think the same tax level for all is a good idea should think about all the other costs that pensioners have and how this will give a bigger headache and stress to those that have to administer their affairs on their behalf.

Gracchus_Babeuf

This has been an outrageous budget. Help the rich and hit the most vulnerable - this is the Tory message to the country. The poor and also the middle class get hit with tax rises and the rich laugh all the way to the bank - a disgrace.

Gracchus_Babeuf

downshifter98 wrote: »

Must admit I never really understood why older folk received a larger allowance; they already avoid national insurance (for now!) and, if anything, require a lower income than younger people. Having one simple 'personal allowance' for everyone (and at a much higher level for the majority ie £10,000) does generally make sense imho.

Equalising the allowances makes sense - but only if they are equalised at the higher level! Otherwise you get one lot losing out - and in this case it is pensioners.

And note the other scam that the Tories are planning: the flat rate £140 pension with S2P being abolished. This means anyone on a decent income (but not the rich) will see a good part of their pension wiped out.

londonlydia

Dont want to rile anyone! ust wanted to ask the over 65s a question. Whilst you feel that you have the same expenditure as younger generations, what is the arguement for needing more?

Whilst I appreciate people contribute all their lives, so will I as a younger person. And, I have to say that I would prefer to be given more tax breaks now rather than when I'm older/ retired, to allow me on the property ladder and I can save for retirement as I wish. But that is just my personal opinion on my life.

JCB20

As someone who is due to retire in 2014 it looks like I am just in time to be shafted.
Worked since 18, supported my family and never claimed any benefit in that time. Paid my NI for what will be 47 years not 30 so more than paid my dues.
Now the state in the form of GO thinks they can renege on the contract! I did vote Tory last time but it will now be the LAST time.

Consumerist

londonlydia wrote: »

Dont want to rile anyone!

I think you do

ust wanted to ask the over 65s a question. Whilst you feel that you have the same expenditure as younger generations, what is the arguement for needing more?.

I reckon it may have something to do with having less income than those at work and less opportunity to increase it. But that's just my guess on the matter.

bryanb

It's not just pensioners affected here. The people affected are all those over 65 years and with an income between 10k and 29k. They could actually be workers. Pension has nothing to do with the 10k tax free allowance.

Spaniel24

Surprise, surprise, the baby boomers get hit again. Oh, and before younger readers remind us we have nice houses you can't afford, may I remind you that we paid 15% interest on our mortgage for years so we've literally paid our dues.

jo444_2

londonlydia wrote: »

Dont want to rile anyone! ust wanted to ask the over 65s a question. Whilst you feel that you have the same expenditure as younger generations, what is the arguement for needing more?

Whilst I appreciate people contribute all their lives, so will I as a younger person. And, I have to say that I would prefer to be given more tax breaks now rather than when I'm older/ retired, to allow me on the property ladder and I can save for retirement as I wish. But that is just my personal opinion on my life.

As I said above my parents saved for their retirement (my Dad died 20 years ago after only a couple of years retirement) but all that money now has gone on care home fees because they did. If they had rented, not saved, not had a pension, care home fees would be paid for and if only on the state pension it will be topped up by the government. Or the other way is to rob a train, go aboard and spend your spoils and then come back and get put in a nursing home that is paid for by our taxes!

So yes you will rile people who are struggling with pay their care home fees - a double wammy finding your pension now being taxed!

thelawnet

Tax cuts for the rich
Anyone who earns over £150,000 a year will pay less tax from next year. At present, those in that top tax bracket pay 50% on earnings above that threshold.
That rate will drop to 45% in April 2013
For full info, see the 50% tax cut MSE News story.

But anyone earning £100k-£150k will pay more tax due to the reduction in the size of the basic rate band, fiscal drag on the £100k PA limit, and the fact that they don't get a Personal Allowance.


Also it's not clear that people earning over £150k will pay less tax, as the total tax relief from all sources is now limited to 25% of income.



I don't know quite how this works, but clearly this was a means by which people were avoiding tax.