From the autumn eight million state pension households will receive an extra £300

2

Comments

  • comeandgo
    comeandgo Posts: 5,740 Forumite
    First Anniversary Name Dropper First Post
    missile said:
    It is another Tory headline vote catcher. How much time & money will be wasted on administration? It would be so much easier and fairer to simply reduce the tax so that everyone would benefit.
    Which tax would you reduce?  I’m a pensioner and I don’t pay any income tax and the vat on the electric is at 5% so not really a big saving.
  • missile
    missile Posts: 11,684 Forumite
    Name Dropper Photogenic First Post Combo Breaker
    edited 24 July 2022 at 10:10AM
    The government get increased value added TAX revenue from increased cost of our energy bills. It may not suit you(?), but I would suggest for most homeowners pay more than £25 VAT per month on their energy bills.

    Similarly increased revenue from increasing fuel prices. I don't see them reducing that either.
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home :iloveyou:
  • Grumpy_chap
    Grumpy_chap Posts: 14,859 Forumite
    First Anniversary First Post Name Dropper Combo Breaker
    missile said:
    The government get increased value added TAX revenue from increased cost of our energy bills. It may not suit you(?), but I would suggest for most homeowners pay more than £25 VAT per month on their energy bills.
    AIUI, VAT on domestic energy is 5%.
    For a household to pay more than £25 VAT per month would mean £25 / 5 = 5 x 100 = £500 per month energy bill.
    I would suggest that most homeowners pay far less than this.  Even after the recent hikes.
  • comeandgo
    comeandgo Posts: 5,740 Forumite
    First Anniversary Name Dropper First Post
    missile said:
    The government get increased value added TAX revenue from increased cost of our energy bills. It may not suit you(?), but I would suggest for most homeowners pay more than £25 VAT per month on their energy bills.

    Similarly increased revenue from increasing fuel prices. I don't see them reducing that either.
    As I said, reducing 5% vat is not a big deal, only about £15 a month for most, I’d be very surprised if anyone had a monthly bill of £500.    Whichever way it is done there will be winners and those who don’t win.  
  • missile
    missile Posts: 11,684 Forumite
    Name Dropper Photogenic First Post Combo Breaker
    missile said:
    The government get increased value added TAX revenue from increased cost of our energy bills. It may not suit you(?), but I would suggest for most homeowners pay more than £25 VAT per month on their energy bills.
    AIUI, VAT on domestic energy is 5%.
    For a household to pay more than £25 VAT per month would mean £25 / 5 = 5 x 100 = £500 per month energy bill.
    I would suggest that most homeowners pay far less than this.  Even after the recent hikes.
    I think you need to fact check. 
    £25 per month = £300/ year

    "According to latest Ofgem figures average cost for electricity in the UK sits at around 28p per Kwh. So, taking our earlier figure of 3,000kWh, the average annual bill is around £840 per year or £70 per month." This figure predates the recent increases.

    My EDF fixed rate ends in September and next rate will be treble what I am currently paying.

    May be an image of 1 person and text that says newaiu Uoonc BeckettUnite France had 87 ownership of its main energy company EDF EDF Today Franc has decided 87 public ownership isnt enough They taking it into 100 public ownership French family fuel bills are up 4 while in the UK they re up 54 We must follow the French Renationalise now


     
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home :iloveyou:
  • Nearlyold
    Nearlyold Posts: 2,284 Forumite
    First Anniversary Name Dropper Combo Breaker First Post
    missile said:
    missile said:
    The government get increased value added TAX revenue from increased cost of our energy bills. It may not suit you(?), but I would suggest for most homeowners pay more than £25 VAT per month on their energy bills.
    AIUI, VAT on domestic energy is 5%.
    For a household to pay more than £25 VAT per month would mean £25 / 5 = 5 x 100 = £500 per month energy bill.
    I would suggest that most homeowners pay far less than this.  Even after the recent hikes.
    I think you need to fact check. 
    £25 per month = £300/ year

    "According to latest Ofgem figures average cost for electricity in the UK sits at around 28p per Kwh. So, taking our earlier figure of 3,000kWh, the average annual bill is around £840 per year or £70 per month." This figure predates the recent increases.

    My EDF fixed rate ends in September and next rate will be treble what I am currently paying.

    May be an image of 1 person and text that says newaiu Uoonc BeckettUnite France had 87 ownership of its main energy company EDF EDF Today Franc has decided 87 public ownership isnt enough They taking it into 100 public ownership French family fuel bills are up 4 while in the UK they re up 54 We must follow the French Renationalise now


     
    Think you've misunderstood what Grumpy-Chap is saying.

    His £500 figure is not the amount of VAT that would be payable annually if the monthly VAT was £25 (which would obviously be £300) it's the monthly cost of energy per month pre VAT if the monthly VAT charge amounts to £25.

    As he says a total cost per month for energy including VAT of £525 does seem a little on the high side even given the latest increases
  • missile
    missile Posts: 11,684 Forumite
    Name Dropper Photogenic First Post Combo Breaker
    edited 24 July 2022 at 3:14PM
    Nearlyold said:
    missile said:
    missile said:
    The government get increased value added TAX revenue from increased cost of our energy bills. It may not suit you(?), but I would suggest for most homeowners pay more than £25 VAT per month on their energy bills.
    AIUI, VAT on domestic energy is 5%.
    For a household to pay more than £25 VAT per month would mean £25 / 5 = 5 x 100 = £500 per month energy bill.
    I would suggest that most homeowners pay far less than this.  Even after the recent hikes.
    I think you need to fact check. 
    £25 per month = £300/ year

    "According to latest Ofgem figures average cost for electricity in the UK sits at around 28p per Kwh. So, taking our earlier figure of 3,000kWh, the average annual bill is around £840 per year or £70 per month." This figure predates the recent increases.

    My EDF fixed rate ends in September and next rate will be treble what I am currently paying.

    May be an image of 1 person and text that says newaiu Uoonc BeckettUnite France had 87 ownership of its main energy company EDF EDF Today Franc has decided 87 public ownership isnt enough They taking it into 100 public ownership French family fuel bills are up 4 while in the UK they re up 54 We must follow the French Renationalise now


     
    Think you've misunderstood what Grumpy-Chap is saying.

    His £500 figure is not the amount of VAT that would be payable annually if the monthly VAT was £25 (which would obviously be £300) it's the monthly cost of energy per month pre VAT if the monthly VAT charge amounts to £25.

    As he says a total cost per month for energy including VAT of £525 does seem a little on the high side even given the latest increases
    You are correct, I misunderstood his post and £525/month average is a little high. My apologies XXX
    _____________________________________________________



    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home :iloveyou:
  • missile
    missile Posts: 11,684 Forumite
    Name Dropper Photogenic First Post Combo Breaker
    What a great idea, wish that I had thought of that :-):
    • Rishi Sunak has pledged to scrap VAT on energy bills for a year if he became prime minister. In an apparent climbdown, the former chancellor promised to introduce the “temporary and targeted” measure to save £160 on the average household bill as energy prices soar this winter.
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home :iloveyou:
  • Farway
    Farway Posts: 13,182 Forumite
    Homepage Hero First Post Name Dropper Photogenic
    missile said:
    What a great idea, wish that I had thought of that :-):
    • Rishi Sunak has pledged to scrap VAT on energy bills for a year if he became prime minister. In an apparent climbdown, the former chancellor promised to introduce the “temporary and targeted” measure to save £160 on the average household bill as energy prices soar this winter.

    If he plays it right, he could even claim it as a "Brexit Dividend" >:)
    Eight out of ten owners who expressed a preference said their cats preferred other peoples gardens
  • Sterlingtimes
    Sterlingtimes Posts: 2,390 Forumite
    Name Dropper First Post First Anniversary
    molerat said:
    It is purely an extra £300 per pensioner household irrespective of how many or age.  How it is going to be paid / split has not been announced.
    Thank you. I will never be able to argue with my father in law that his payments belong to the household. It appears to be an enhanced Winter Fuel Payment.
    Which part of 'winter fuel allowance' does your father in law not understand?  Unless he has his own stand-alone boiler and meter, of course these payments belong to the household!

    These payments are made to the pensioner - obviously they belong to the pensioner, they are in his bank account after all.
    Thank you, that sums up the situation well.
    I have osteoarthritis in my hands so I speak my messages into a microphone using Dragon. Some people make "typos" but I often make "speakos".
Meet your Ambassadors

Categories

  • All Categories
  • 343K Banking & Borrowing
  • 250K Reduce Debt & Boost Income
  • 449.6K Spending & Discounts
  • 235.1K Work, Benefits & Business
  • 607.7K Mortgages, Homes & Bills
  • 173K Life & Family
  • 247.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards