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Better-off Pensioners 'encouraged' to give fuel allowance to charity

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Comments

  • Pensions couldn't be increased, across the board, for political reasons.

    Why not ?
    No-one would remember the Good Samaritan if he'd only had good intentions. He had money as well.

    The problem with socialism is that eventually you run out of other people's money.

    Margaret Thatcher
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    Why not ?

    The grief they would get, the WFA causes enough already.

    They happily boasted about the biggest increase last year, only because it was "forced" on them. I am sure giving a 5% increase above inflation for a couple of years wouldn't have gone down well.
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
  • PaulF81
    PaulF81 Posts: 1,727 Forumite
    Your damn right. Granny can knit herself a jumper instead. Giving pensioners RPI levels of increase whilst tuition fees are getting upped to 9k a year is a sure fire way to get every pensioner a ticket to dignitas in 20 years.
  • BertieUK
    BertieUK Posts: 1,701 Forumite
    The grief they would get, the WFA causes enough already.

    They happily boasted about the biggest increase last year, only because it was "forced" on them. I am sure giving a 5% increase above inflation for a couple of years wouldn't have gone down well.

    Could someone please give me a logical reason why pensions do not at least, keep pace with inflation.

    The pensioner then has to eat into their savings to make up the shortfall and thenun they reach a level whereby their savings have reached a level that they will have to claim benefits.

    Remember nobody can escape being a pensioner in time.

    Does not make enonomic sense to me.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Couldn't we simply scrap it altogether?

    If it's really needed:

    A) look at why, and what other countries do...if anything?
    B) implement it like a bus pass / disability badge...where you have to apply?

    I understand how politically damning it would be to simply axe it, but couldn't they just state labour created this stupid system in the first place? Surely no one agrees with giving it to everyone regardless?
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    BertieUK wrote: »
    Could someone please give me a logical reason why pensions do not at least, keep pace with inflation.

    The pensioner then has to eat into their savings to make up the shortfall and thenun they reach a level whereby their savings have reached a level that they will have to claim benefits.

    Remember nobody can escape being a pensioner in time.

    Does not make enonomic sense to me.

    I think you answered your own question.

    Average pensioner inflation doesn't meet RPI/CPI it tends to be much higher as the staples in life increase more rapidly. The fact that flat screen TVs and smartphones are falling in price doesn't really help.

    Energy costs have let rip, due to global demand, bonkers energy strategies and, green targets and profits. This as a big impact on disposable income. Food has gone the same way.

    Savings are bad in the NWO, they need us to be constantly consuming debt slaves to make the game work for the few.
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
  • PaulF81
    PaulF81 Posts: 1,727 Forumite
    edited 28 December 2012 at 4:46PM
    BertieUK wrote: »
    Could someone please give me a logical reason why pensions do not at least, keep pace with inflation.

    The pensioner then has to eat into their savings to make up the shortfall and thenun they reach a level whereby their savings have reached a level that they will have to claim benefits.

    Remember nobody can escape being a pensioner in time.

    Does not make enonomic sense to me.

    Because the inflation adjusted level of state pensions today is nearly double what was introduced by Bevan and what we have today is completely unaffordable.

    It doesnt make sense to cut short on education budgets today (tomorrows taxpayers) to pay for purple rinses and the waitrose shop either.
  • The grief they would get, the WFA causes enough already.

    They happily boasted about the biggest increase last year, only because it was "forced" on them. I am sure giving a 5% increase above inflation for a couple of years wouldn't have gone down well.


    Wasn't it because it is written as a Statute, so is not easily changed except by Act of Parliament? For years it was RPI, which accounted for the 51p increase a few years back.

    The Law was changed under the ConDems to be the "triple lock": the higher of CPI (ie lower than RPI); or Wage inflation; or 2.5%. This year the triple lock was based on CPI, as it was last year, when, IIRC, the pension increased by 5%.

    For years, State Pensioners were penalised by being paid according to inflation, whilst employee Wage Inflation rose and rose (sorry, cannot be bothered to dig out the figures, so this is what I "understand" rather than saying it's gospel). So, it would seem that the triple lock would be rather fairer to State Pensioners.

    People would do well to remember that most of us do get older*, and will eventually qualify for the State Pension. The more it increases now, the more they will also benefit, when it is their turn to claim.

    In general, pensioners (with private Company pensions, not Public Sector) don't want inflation as their private pensions often have a cap on them (mine, for example is capped at 5%, and is at the discretion of the Pension provider).

    At some stage fairly soon, the Government will have to allow Councils to increase Council Tax - this is a day I dread, as Council Tax, Fuel Tax (and house maintenance, but that's a separate issue), take up the largest portion of my income.

    What seems to happen with means-testing, however, is that those on pension credit benefit, but those just above the qualification income for pension credit, or who have too much in savings, would most probably lose it.

    *Whether or not they have ever had children and paid taxes for child benefit, schools etc.
  • Jennifer_Jane
    Jennifer_Jane Posts: 3,237 Forumite
    1,000 Posts Combo Breaker
    edited 28 December 2012 at 5:02PM
    Couldn't we simply scrap it altogether?

    If it's really needed:

    A) look at why, and what other countries do...if anything?
    B) implement it like a bus pass / disability badge...where you have to apply?

    I understand how politically damning it would be to simply axe it, but couldn't they just state labour created this stupid system in the first place? Surely no one agrees with giving it to everyone regardless?

    I agree completely with you, but whenever I listen to Parliament Live and this kind of thing is discussed, the MPs always say that the people who most need the WFA are the types who cannot apply for it for one reason or another - too old, too proud, whatever.

    Certainly younger pensioners now as they grow older will be less stoical, and would apply for it. But how you get around the fact that something like 27,000* old people currently die every year through the cold, I don't know.

    *http://fullfact.org/factchecks/cold_deaths_nhs_cost_billion-28621
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    People would do well to remember that most of us do get older*, and will eventually qualify for the State Pension. The more it increases now, the more they will also benefit, when it is their turn to claim.

    So long as it's affordable....which it clearly isn't.

    You can't pay out more and more from less and less.
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