DLA or WTC may go !!

Londonsu

benniebert wrote: »

Joking or not, in a way I agree with that comment much like how an annuity works.
However to get that level of financial support someone somewhere is going to have to put a lot more money into the system via increased NIC to fund it.


Then we hear the screams from the employers and the employees about how high the payments/deductions are.

The new pension rules mean that a lot of people will be paying NIC and not getting anything for it.


I will not get my state pension until 2021 by then I will have paid in for 51 years, however (if I read the new rule correctly) my pension entitlement will be based on the contributions I will have made up to April 2016 IE 46 years, therefore I will be paying for 5 years without seeing a single penny extra on my pension, so who gets that money???? not me

System

so who gets that money???? not me

The people who are claiming pension between 2016 & 2021

Tax & NI are used NOW. It is not a pot you pay into and claim later as a pension.. When you claim your pension the people who are paying for it are the people paying tax & NI then.

50Twuncle

blondebubbles wrote: »

Although carers allowance is taxable, many who receive it wouldn't actually pay any tax given the personal allowance.

CA is not taxable - simply because CA is only paid if the carer is earning less than £102 per week and thus a combined income maximum of £164 per week or £8524 per year and thus not in the income tax bracket !

mkcj

This does not alter the fact that it is taxable.


This means it needs to be declared on any Tax Credit Forms, unlike DLA which is not taxable and does not need to be declared for Tax Credit purposes.


https://www.gov.uk/carers-allowance/overview

p00hsticks

Londonsu wrote: »

The new pension rules mean that a lot of people will be paying NIC and not getting anything for it.

It's not just a feature of the new pension rules - exactly the same can happen now under the current rules if you're contracted out. Once you've reached the 30 years required for the basic state pension there is no personal benefit in paying any additonal years.

And you could also argue that anyone paying over the minimum amount of NI required each year is also paying without getting anything out - but if you are on PAYE you don't have any choice.

Londonsu wrote: »

I will not get my state pension until 2021 by then I will have paid in for 51 years, however (if I read the new rule correctly) my pension entitlement will be based on the contributions I will have made up to April 2016 IE 46 years, therefore I will be paying for 5 years without seeing a single penny extra on my pension, so who gets that money???? not me

Chances are you'll have paid far more NI contributions that strictly necessary to get a pension under both old and new rules- although if you are currently 'contracted out' you may well find that any additional years after the new rules come in will increase your pension amount.

But as !!!!!! says, NI contributions are just a tax by another name, and go to paying benefits for people today - it's not a separate pot of money that each individual builds up. The idea of having a certain number of qualifying years to get a full state pension is only a simplistic way of trying to ensure that people put a reasonable time in before getting a full pension out.

50Twuncle

mkcj wrote: »

This does not alter the fact that it is taxable.


This means it needs to be declared on any Tax Credit Forms, unlike DLA which is not taxable and does not need to be declared for Tax Credit purposes.


https://www.gov.uk/carers-allowance/overview

That's what they state - but I can't think of any circumstances when someone claiming CA pays income tax - can you ?

50Twuncle

Of all the benefits - WTC has to be the biggest farce - they pay upwards of £100 per week to someone who earns £150 per week but don't even carry out full checks to see what they are bringing in (HMRC and DWP do NOT have interlinking IT systems - so any checks are done manually) - and SAVINGS are calculated at some ridiculous rate of assumed interest as well
Yet someone earning £155 per week - gets a reduction of WTC in the order of 75% - and someone earning only £100 per week gets ziltch - because they are required to work 16 hours (disabled) and 20 hours (non-disabled)
WTC needs a MAJOR rethink.

p00hsticks

50Twuncle wrote: »

and SAVINGS are calculated at some ridiculous rate of assumed interest as well

DWP /HMRC don't make assumptions about how much interest people may or may not be earning on savings when calculating means tested benefits.

What they do do is reduce the amount of the means tested benefit awarded in propoprtion to the amount by which savings exceed a given amount (typically, reducing the benefit by £1 for each £250 savings above a £6,000 threshold).

This isn't on the assumption that interest is being earned at that sort of rate, but rather is a recognition of the fact that if someone has more that a certain amount of savings they are expected to dip into them to some extent rather than rely wholly on benefits.

tea-bag

LONG POST ALERT:

There are loads of benefits that should go or change

1, WTC. Just a excuse to prop up low wages paid by big company's. There should be a rule in place that company making profit over a certain amount must pay over say £10ph and this could be on a sliding scale so if they make £1m profit £10ph, £2m profit £10.50 and so on.

2, CTC. This works with the above and rewards people for having more kids. Stop payments until they are 20! at 16 they are no longer a child they can work, go into the forces or education/training. If they are in education but live alone provide HB and CTB. Bring back EMA at a higher rate and paid weekly provided they turn up to college.

3. Maintenance payments SHOULD COUNT AS INCOME!! What a joke it is not! All payments should be handled by computer done in arrears. The parent paying the maintenance pays into a account this amount is deducted from any benefit received and handed over. As this will be done in arrears there is no possibility the parent with care will be left short.

4. ESA Should be paid at same rate as JSA and only one level. This will help curb the tide of fakers out for extra cash and less scrutiny that you get under JSA.

5. NEW BENEFIT Lifetime disability award (MEANS TESTED) There are people in life who will always be servility disabled these people will be reviewed once a year by a DOCTOR and paid equivalent to 40 hours PW at the living wage rate. Any equipment (Power chairs, incontinence pads etc) will be provided on a case by case basis.

6. SCRAP DLA/PIP People are paid money even though their disability may not cost them a penny more to live with. If you have needs for equipment or consumables this will be provided.

7. Carers Allowance. Should be paid PH at the living wage rate and only to people on the lifetime disability award. It will be assessed on a case by case basis and each person allocated hours on there needs. This will only be payable to a NON RELATIVE! Thus boosting the care sector.

8. Pensions (MEANS TEST)

9. JSA should be increased but only payable for 2 years at NMW and paid the same to 18 year olds as it is to 64 year olds. Once back in work you repay what you claimed like a student loan.

10. Mortgage interest payments. SCRAPPED replaced with a full payment system but then charged on the property(so any money payed is recovered when the house is sold)

11, BEDROOM TAX Pay it or move (if you refuse suitable accommodation or refuse to go onto a transfer list)

12, IS for single parents paid at same rate as JSA again up the age of 5 limit 3 children to be repaid same as JSA.

13. Housing Benefit Not sure what to do with this as it leads into my next point.

14, Council Tenants MUST BE REVIEWED EVERY 5 YEARS this will be based on people living in the property size of property and upkeep of the property and behavior in that property. ALSO MEANS TESTED! I would keep right to buy BUT Every penny must be used to build social housing. I would also make it a rule that any development build is half and half social housing built to the same design and standard as the bought housing.

15, Child Benefit SCRAPPED

16, Motability SCRAPPED This is financed by the big banks and just a big con from start to end. A fleet size of 610,000!! Really?? Get them off the road I am not here to prop up the banks and car companys.

17, EVERYTHING TO BE MEANS TESTED

merlin68

Lol Teabag, thats an epic post. considered running for parliament. Some of your points i actually agree with. Apart from 11 and 17. Bedroom tax not enough smaller properties to move into especially one bed.
I would keep notability, but have automatic entitlement to bus pass for low mobility.
I would say that if you need motability it should be spent on transport and nothing else. No cash, bus pass or car.
Not like my mate who saves her kids dla for an 2 week all inclusive abroad.