State pensions should be slashed

dunstonh

own to unemployment benefit rates as state pensions are the biggest drain on this country by far

If you separate state pensions and government backed pensions, you will find that state pension is not the biggest expenditure. The state pension uses up around 45% of the total spending by the DWP. So, benefits exceed pension spend (that doesn't include the £40bn in tax credits and child benefit either as that falls under HMRC). NHS is £97bn so that exceeds it too.

Tax credits is an interesting one at £29bn. That is a benefit by any other name and should be treated as such in my opinion.

What is sad is eduction gets so little considering the long term benefit that a decent education brings. However, long term is not something that Governments are interested in as they wont be in power when the benefits of that spending start to show and the government in power at the time will take the credit.

nashly

dunstonh wrote: »

If you separate state pensions and government backed pensions, you will find that state pension is not the biggest expenditure. The state pension uses up around 45% of the total spending by the DWP. So, benefits exceed pension spend (that doesn't include the £40bn in tax credits and child benefit either as that falls under HMRC). NHS is £97bn so that exceeds it too.

Tax credits is an interesting one at £29bn. That is a benefit by any other name and should be treated as such in my opinion.

What is sad is eduction gets so little considering the long term benefit that a decent education brings. However, long term is not something that Governments are interested in as they wont be in power when the benefits of that spending start to show and the government in power at the time will take the credit.

I think you need to re look at your figures, government spending purely on pensions alone is higher than health welfare or defence, in 2014 it will be 144 billion pounds.

nashly

stix62 wrote: »

Oh my, and here's me thinking it's the government and the bankers that are screwing this country over and leading us up the creek paddleless when it's the o.a.p's all along!

benefits and pensions are the biggest drain?
that's comical :T

No no, just state pensions.

Dunroamin

somethingcorporate wrote: »

Just to play devil's advocate here but what about pensioners that never worked? receiving the state pension doesn't guarantee that they did actually pay anything towards it...

Pensioners who've never worked get pension credit, not SRP - for the moment at least.

[Deleted User]

What is the point in paying taxes if it isn't used to help those that can't pay taxes, or those that need help? That includes the unemployed, the disabled, the retired...

Unemployment benefits are meant to be temporary. Also the majority of people that live off of unemployment benefits are also claiming a wide variety of other benefits (housing benefit for example). The JSA amount (£70 per week?) is not what couples are living off. A couple claiming job seekers allowance, housing benefit and child benefit will be in receipt of more than most peoples retired grandparents.

peterg1965

CLAPTON wrote: »

how would that work?

if the tax benefits of opting out were better than the pension then the taxpayer would lose

if the opposite, why would the person be stupid enough to make the opt out.

It was just a thought, and I realise it would not be easy to come up with a solution that does not potential cost the Government (taxpayer) more money in the long term. I for one am not banking on the State Pension, but if an inducement was offered, such as maintaining a higher Lifetime Allowance in exchange for giving up the State Pension, I would seriously consider it.

JezR

The latest DWP annual report gives the cost of state pensions in 2012-13 as £79.8B, including the Christmas bonus.

somethingcorporate

CLAPTON wrote: »

In general, it's felt that letting people starve, is somehow wrong.

Nice strawman there - because the alternative to giving people money is letting them starve? I wasn't aware that consuming fivers was part of a healthy diet.

Not heard of food vouchers or food banks? I don't see many people in this country starving and plenty of them don't have an income for one reason or another.

Linton

nashly wrote: »

I think you need to re look at your figures, government spending purely on pensions alone is higher than health welfare or defence, in 2014 it will be 144 billion pounds.

I dont think you should believe everything you read on the the internet...

According to the Pensions Policy institute there will be 12.5M approx people of state pension age in 2015. Divide £144B by 12.5M gives us £11520/pensioner, about twice the basic state pension! And dont forget the tax taken from the state pension and the cost drops even further.

Perhaps the £144B includes public sector pensioners? Perhaps its the figure for public sector pensioners only? Perhaps its a completely fictitious number? Who knows?

CLAPTON

peterg1965 wrote: »

It was just a thought, and I realise it would not be easy to come up with a solution that does not potential cost the Government (taxpayer) more money in the long term. I for one am not banking on the State Pension, but if an inducement was offered, such as maintaining a higher Lifetime Allowance in exchange for giving up the State Pension, I would seriously consider it.

but would you do it if it was to your overall disadvantage?

it's a little difficult to see how you come up with sometime that makes both the taxpayer and the individual recipients better off simultaneously in straight money terms