Ooh, Time to Start Speculating About LTA Changes Again

RogerPensionGuy

Just maybe with the NHS waiting lists data coming out and such high inflation, the government will start inflating the LTA or maybe scrap it🙂

dunstonh

RogerPensionGuy said:

Just maybe with the NHS waiting lists data coming out and such high inflation, the government will start inflating the LTA or maybe scrap it🙂

With todays news, there is probably zero chance of the LTA being increased by a notable amount (if at all) or scrapped in the foreseeable future.

saucer

I wonder what Sunak being at the helm means for the LTA freeze, if anything, given he introduced it (last year)? I ask because, as it is, it is likely to affect when I retire.

Albermarle

saucer said:

I wonder what Sunak being at the helm means for the LTA freeze, if anything, given he introduced it (last year)? I ask because, as it is, it is likely to affect when I retire.

I would guess that pension reform/LTA freeze will be well down his priority list. I would be surprised if it was unfrozen in the short/medium term.

NedS

Albermarle said:

saucer said:

I wonder what Sunak being at the helm means for the LTA freeze, if anything, given he introduced it (last year)? I ask because, as it is, it is likely to affect when I retire.

I would guess that pension reform/LTA freeze will be well down his priority list. I would be surprised if it was unfrozen in the short/medium term.

I agree. Given the nature of the budget deficit, and the previous general election pledge not to raise income tax, NI or VAT, there seems little scope to narrow the deficit other than continuing with frozen allowances (income tax thresholds, LTA, AA etc) and dragging more people into taxation (or more taxation).

dunstonh

Despite the LTA causing issues in the NHS, Labour would have a field day if it was increased.   And the twitterati would dominate the media with their lack of understanding about the issues.  So, its easier for the Government to leave it unchanged.

SouthCoastBoy

Can't see why he would unfreeze it, he needs to tighten the budget, taxes will be ridsing. He needs to cut benefits link with inflation, he has frozen personal allowances so that along with lta frozen, currently the workers are taking the hit, then the govt are surprised about low productivity and workers stopping work in 50s. 

Mick70

Absolutely no chance will it increase , can’t see much changing with pensions for moment , unless they cut it ! Or target tax relief on contributions .
more people I know are getting holiday lets for retirement income rather than DC Pensions 

NedS

SouthCoastBoy said:

Can't see why he would unfreeze it, he needs to tighten the budget, taxes will be ridsing. He needs to cut benefits link with inflation, he has frozen personal allowances so that along with lta frozen, currently the workers are taking the hit, then the govt are surprised about low productivity and workers stopping work in 50s. 

These are the people who are most financially vulnerable. With inflation of 10.1% this year, and likely to be similar again next year, that's a huge drop in real income, which benefit claimants are simply not in a position to absorb. If benefits do not increase, then claimants simply become ever more dependent on cost of living handouts etc, and I would imagine they will be looking to end those next year too. My monthly electricity bill is now more than the average benefit claimant standard allowance (£265.31 for under 25; £334.91 for 25 and over's) in a month. What happens in April when the energy price cap ends and benefits are frozen? Even with a 10.1% CPI increase, the standard allowance would not cover my monthly electricity costs, let alone oil for heating, food, other utility bills and any number of other things. Those that can afford to can and should expect to pay more tax to support those who cannot.

SouthCoastBoy

NedS said:

SouthCoastBoy said:

Can't see why he would unfreeze it, he needs to tighten the budget, taxes will be ridsing. He needs to cut benefits link with inflation, he has frozen personal allowances so that along with lta frozen, currently the workers are taking the hit, then the govt are surprised about low productivity and workers stopping work in 50s. 

These are the people who are most financially vulnerable. With inflation of 10.1% this year, and likely to be similar again next year, that's a huge drop in real income, which benefit claimants are simply not in a position to absorb. If benefits do not increase, then claimants simply become ever more dependent on cost of living handouts etc, and I would imagine they will be looking to end those next year too. My monthly electricity bill is now more than the average benefit claimant standard allowance (£265.31 for under 25; £334.91 for 25 and over's) in a month. What happens in April when the energy price cap ends and benefits are frozen? Even with a 10.1% CPI increase, the standard allowance would not cover my monthly electricity costs, let alone oil for heating, food, other utility bills and any number of other things. Those that can afford to can and should expect to pay more tax to support those who cannot.

They could always get a job, plenty of vacancies at the moment, as a country we have gone soft, too many treating benefits as a lifestyle choice. I would understand it if there were no jobs  but on the news I am always hearing of the fact companies can't get staff, to me that means many are happy claiming their benefits and have no intention to look for a job.