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Triple Lock Becomes Double Lock For 1 Year

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  • xylophone
    xylophone Posts: 45,224 Forumite
    Part of the Furniture 10,000 Posts Name Dropper


    because most of the benefits that NI entitles you to aren't available to those over state pension age 

    https://www.icaew.com/technical/tax/towards-a-better-tax-system/hypothecation-of-taxes#:~:text=National Insurance Contributions (NIC) have,a few social security benefits.


    National Insurance Contributions (NIC) have always been a hypothecated tax which pay principally for current State Pensions, some NHS spending and a few social security benefits.

    Currently about 75% of the contributions go into a special National Insurance Fund and then come straight out to pay current (state) pensioners, while about 20% of the rest goes straight to the NHS without going in to the National Insurance Fund.

    It does seem rather odd for a  person to have  contributed  (before reaching SPA)  to be entitled to  a benefit  (and SP is a benefit) and then to be asked to pay for the benefit  after SPA)!


    That said, there must be a number of pensioners whose income is high enough for them to pay as much in tax ( or nearly as much) as they actually receive in state pension?

  • Torry_Quine
    Torry_Quine Posts: 18,856 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    jamesd said:
    Setting the wonderful 1970s as the golden standard is smart. Britain was doing so well, who wouldn’t want to try that again? 

    "the truth is that most ordinary families in 1970s Britain were better off than ever"

    That's in spite of organised labour driving Labour out of government and getting us Thatcher and more riots, including a few hundred meters from where I was living in London at the time.

    Nice try at distraction.
    Yep. Stagflation (including 30% inflation) and lowering of the level of life is what we should aim at.  Bound to help retirees make ends meet.  If the Beeb says that The Sick Men of Europe had it best then it must be true.   

    jamesd is correct.  Living standards were pretty good in the 1970s for ordinary, working class people.  You had 30% inflation for like a year or so.  But you miss the fact that incomes rose also - such that real incomes were growing for nearly all years in the 1970s (and quite a bit more than they have done for the last 20 years).

    This was also at a time when housing was cheap. ......
    Not all working class families did well
     My family certainly struggled through every decade. This is why I don't like sweeping statements. 
    Lost my soulmate so life is empty.

    I can bear pain myself, he said softly, but I couldna bear yours. That would take more strength than I have -
    Diana Gabaldon, Outlander
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 8 September 2021 at 3:10PM
    jamesd said:
    Setting the wonderful 1970s as the golden standard is smart. Britain was doing so well, who wouldn’t want to try that again? 

    "the truth is that most ordinary families in 1970s Britain were better off than ever"

    That's in spite of organised labour driving Labour out of government and getting us Thatcher and more riots, including a few hundred meters from where I was living in London at the time.

    Nice try at distraction.
    Yep. Stagflation (including 30% inflation) and lowering of the level of life is what we should aim at.  Bound to help retirees make ends meet.  If the Beeb says that The Sick Men of Europe had it best then it must be true.   

    jamesd is correct.  Living standards were pretty good in the 1970s for ordinary, working class people.  You had 30% inflation for like a year or so.  But you miss the fact that incomes rose also - such that real incomes were growing for nearly all years in the 1970s (and quite a bit more than they have done for the last 20 years).

    This was also at a time when housing was cheap. ......
    Not all working class families did well
     My family certainly struggled through every decade. This is why I don't like sweeping statements. 
    Standard of living has generally improved across the board. Struggle is a relative term. People now spend their money on things previous generations had no access to. Made do, reycled and made things for themselves by learning skills. 
  • Torry_Quine
    Torry_Quine Posts: 18,856 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    jamesd said:
    Setting the wonderful 1970s as the golden standard is smart. Britain was doing so well, who wouldn’t want to try that again? 

    "the truth is that most ordinary families in 1970s Britain were better off than ever"

    That's in spite of organised labour driving Labour out of government and getting us Thatcher and more riots, including a few hundred meters from where I was living in London at the time.

    Nice try at distraction.
    Yep. Stagflation (including 30% inflation) and lowering of the level of life is what we should aim at.  Bound to help retirees make ends meet.  If the Beeb says that The Sick Men of Europe had it best then it must be true.   

    jamesd is correct.  Living standards were pretty good in the 1970s for ordinary, working class people.  You had 30% inflation for like a year or so.  But you miss the fact that incomes rose also - such that real incomes were growing for nearly all years in the 1970s (and quite a bit more than they have done for the last 20 years).

    This was also at a time when housing was cheap. ......
    Not all working class families did well
     My family certainly struggled through every decade. This is why I don't like sweeping statements. 
    Standard of living has generally improved across the board. Struggle is a relative term. 
    I can remember my mother crying over bills, my father having no money for himself etc. Our standard of living was low. 
    Lost my soulmate so life is empty.

    I can bear pain myself, he said softly, but I couldna bear yours. That would take more strength than I have -
    Diana Gabaldon, Outlander
  • michaels
    michaels Posts: 28,502 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    xylophone said:


    because most of the benefits that NI entitles you to aren't available to those over state pension age 

    https://www.icaew.com/technical/tax/towards-a-better-tax-system/hypothecation-of-taxes#:~:text=National Insurance Contributions (NIC) have,a few social security benefits.


    National Insurance Contributions (NIC) have always been a hypothecated tax which pay principally for current State Pensions, some NHS spending and a few social security benefits.

    Currently about 75% of the contributions go into a special National Insurance Fund and then come straight out to pay current (state) pensioners, while about 20% of the rest goes straight to the NHS without going in to the National Insurance Fund.

    It does seem rather odd for a  person to have  contributed  (before reaching SPA)  to be entitled to  a benefit  (and SP is a benefit) and then to be asked to pay for the benefit  after SPA)!


    That said, there must be a number of pensioners whose income is high enough for them to pay as much in tax ( or nearly as much) as they actually receive in state pension?

    No more odd than me in my early 50s paying NI on all I earn even though I already have the maximum state pension entitlement...ie there is already no link between paying NI and getting more pension so why not charge NI on unearned income as well?
    I think....
  • michaels
    michaels Posts: 28,502 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    jamesd said:
    Setting the wonderful 1970s as the golden standard is smart. Britain was doing so well, who wouldn’t want to try that again? 

    "the truth is that most ordinary families in 1970s Britain were better off than ever"

    That's in spite of organised labour driving Labour out of government and getting us Thatcher and more riots, including a few hundred meters from where I was living in London at the time.

    Nice try at distraction.
    Yep. Stagflation (including 30% inflation) and lowering of the level of life is what we should aim at.  Bound to help retirees make ends meet.  If the Beeb says that The Sick Men of Europe had it best then it must be true.   

    jamesd is correct.  Living standards were pretty good in the 1970s for ordinary, working class people.  You had 30% inflation for like a year or so.  But you miss the fact that incomes rose also - such that real incomes were growing for nearly all years in the 1970s (and quite a bit more than they have done for the last 20 years).

    This was also at a time when housing was cheap. ......
    Not all working class families did well
     My family certainly struggled through every decade. This is why I don't like sweeping statements. 
    Standard of living has generally improved across the board. Struggle is a relative term. 
    I can remember my mother crying over bills, my father having no money for himself etc. Our standard of living was low. 
    I cry over the credit card bill every month as DW has continued to spend well in excess of our means.  I assume she is hoping the stress will finish me off and she will be able to claim on the life insurance :(
    I think....
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 8 September 2021 at 3:22PM
    jamesd said:
    Setting the wonderful 1970s as the golden standard is smart. Britain was doing so well, who wouldn’t want to try that again? 

    "the truth is that most ordinary families in 1970s Britain were better off than ever"

    That's in spite of organised labour driving Labour out of government and getting us Thatcher and more riots, including a few hundred meters from where I was living in London at the time.

    Nice try at distraction.
    Yep. Stagflation (including 30% inflation) and lowering of the level of life is what we should aim at.  Bound to help retirees make ends meet.  If the Beeb says that The Sick Men of Europe had it best then it must be true.   

    jamesd is correct.  Living standards were pretty good in the 1970s for ordinary, working class people.  You had 30% inflation for like a year or so.  But you miss the fact that incomes rose also - such that real incomes were growing for nearly all years in the 1970s (and quite a bit more than they have done for the last 20 years).

    This was also at a time when housing was cheap. ......
    Not all working class families did well
     My family certainly struggled through every decade. This is why I don't like sweeping statements. 
    Standard of living has generally improved across the board. Struggle is a relative term. 
    I can remember my mother crying over bills, my father having no money for himself etc. Our standard of living was low. 
    Never been unemployed yourself for a period or had to survive on a reduced income? 
  • Torry_Quine
    Torry_Quine Posts: 18,856 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    michaels said:
    jamesd said:
    Setting the wonderful 1970s as the golden standard is smart. Britain was doing so well, who wouldn’t want to try that again? 

    "the truth is that most ordinary families in 1970s Britain were better off than ever"

    That's in spite of organised labour driving Labour out of government and getting us Thatcher and more riots, including a few hundred meters from where I was living in London at the time.

    Nice try at distraction.
    Yep. Stagflation (including 30% inflation) and lowering of the level of life is what we should aim at.  Bound to help retirees make ends meet.  If the Beeb says that The Sick Men of Europe had it best then it must be true.   

    jamesd is correct.  Living standards were pretty good in the 1970s for ordinary, working class people.  You had 30% inflation for like a year or so.  But you miss the fact that incomes rose also - such that real incomes were growing for nearly all years in the 1970s (and quite a bit more than they have done for the last 20 years).

    This was also at a time when housing was cheap. ......
    Not all working class families did well
     My family certainly struggled through every decade. This is why I don't like sweeping statements. 
    Standard of living has generally improved across the board. Struggle is a relative term. 
    I can remember my mother crying over bills, my father having no money for himself etc. Our standard of living was low. 
    I cry over the credit card bill every month as DW has continued to spend well in excess of our means.  I assume she is hoping the stress will finish me off and she will be able to claim on the life insurance :(
    Not remotely comparable.  If someone overspends on a credit card that's very different from not having money for necessities. 

    Please don't joke about life insurance it's not funny.
     
    Lost my soulmate so life is empty.

    I can bear pain myself, he said softly, but I couldna bear yours. That would take more strength than I have -
    Diana Gabaldon, Outlander
  • Torry_Quine
    Torry_Quine Posts: 18,856 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    jamesd said:
    Setting the wonderful 1970s as the golden standard is smart. Britain was doing so well, who wouldn’t want to try that again? 

    "the truth is that most ordinary families in 1970s Britain were better off than ever"

    That's in spite of organised labour driving Labour out of government and getting us Thatcher and more riots, including a few hundred meters from where I was living in London at the time.

    Nice try at distraction.
    Yep. Stagflation (including 30% inflation) and lowering of the level of life is what we should aim at.  Bound to help retirees make ends meet.  If the Beeb says that The Sick Men of Europe had it best then it must be true.   

    jamesd is correct.  Living standards were pretty good in the 1970s for ordinary, working class people.  You had 30% inflation for like a year or so.  But you miss the fact that incomes rose also - such that real incomes were growing for nearly all years in the 1970s (and quite a bit more than they have done for the last 20 years).

    This was also at a time when housing was cheap. ......
    Not all working class families did well
     My family certainly struggled through every decade. This is why I don't like sweeping statements. 
    Standard of living has generally improved across the board. Struggle is a relative term. 
    I can remember my mother crying over bills, my father having no money for himself etc. Our standard of living was low. 
    Never been unemployed yourself? 
    Not sure why you're asking.
    No I've never been unemployed although now disabled and not working

    Lost my soulmate so life is empty.

    I can bear pain myself, he said softly, but I couldna bear yours. That would take more strength than I have -
    Diana Gabaldon, Outlander
  • jamesd
    jamesd Posts: 26,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I can remember my mother crying over bills, my father having no money for himself etc. Our standard of living was low. 
    As it was for many, my own family not being particularly well off either in the 70s, but generally times were improving even if it was patchy for individual families.
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