Confused and worried over what the increases will be in April

HillStreetBlues

diystarter7 said:

It will be difficult to raise benefits by the rate of inflation when workers on the whole are getting a lot, lot less inc NHS staff.

Only if you look at it in percentage terms, not hard cash.
Over 25 on JSA would get a £7.80 a week increase on 10.1%
Someone over 23 on minimum wage (37.5 hours) would only need a 2.75 percent increase to get the same amount in cash.

I have little doubt  one way  that they will be looking at is to raise benefits with inflation but also increase VAT. Give with one hand, take away with the other.

NedS

HillStreetBlues said:

NedS said:

To be fair, as stated by @calcotti, the government normally make the announcement in November relating to benefit increases for the following year, and we will find out in November if the government are going to keep their promise and commit to the policy or not. The press constantly speculating about it does not help anyone. I don't think you can blame a government for not wanting to be drawn into discussing a policy which has yet to be decided, but the press (and social media) just want click-bait headlines hence the plethora of stories creating and fuelling uncertainty.

One thing that is different this year is the policy is normally known well before November.
When November comes it's then finding out  if they are sticking to that policy.

How is that any different this year? The policy is to rise with inflation - no one has said any different. We will find out if that's the case in November.

HillStreetBlues

NedS said:

How is that any different this year? The policy is to rise with inflation - no one has said any different. We will find out if that's the case in November.

I haven't seen this new Governments policy of the uplift of non- disabled benefits, that's what we are waiting for.

NedS

HillStreetBlues said:

NedS said:

How is that any different this year? The policy is to rise with inflation - no one has said any different. We will find out if that's the case in November.

I haven't seen this new Governments policy of the uplift of non- disabled benefits, that's what we are waiting for.

Exactly my point, so in the absence of a new policy, the existing policy to uplift in line with inflation continues to apply until we are told otherwise.

HillStreetBlues

NedS said:

Exactly my point, so in the absence of a new policy, the existing policy to uplift in line with inflation continues to apply until we are told otherwise.

It's not policy, it's just the norm.
If a government commits to it, then it's policy.

diystarter7

HillStreetBlues said:

diystarter7 said:

It will be difficult to raise benefits by the rate of inflation when workers on the whole are getting a lot, lot less inc NHS staff.

Only if you look at it in percentage terms, not hard cash.
Over 25 on JSA would get a £7.80 a week increase on 10.1%
Someone over 23 on minimum wage (37.5 hours) would only need a 2.75 percent increase to get the same amount in cash.

I have little doubt  one way  that they will be looking at is to raise benefits with inflation but also increase VAT. Give with one hand, take away with the other.

Fair enough but public sector workers have not had rises for some years over the last 10 years or so and cost of fares to travel to work have also shot up, especially in London.
Good luck.

slowcars

Thanks everyone, the comments and arguments are very interesting. I think that I have to agree the press and social media have been the cause of all of this. I just hope that giving a 10% rise to benefits as well as the State Pension does not knock people out of Guaranteed Pension Credit and that any increase to the State Pension is matched by an increase in the Pension Credit award. It would be totally wrong to find that those on Pension Credit do not get a 10% increase to their award.

HillStreetBlues

slowcars said:

Thanks everyone, the comments and arguments are very interesting. I think that I have to agree the press and social media have been the cause of all of this. I just hope that giving a 10% rise to benefits as well as the State Pension does not knock people out of Guaranteed Pension Credit and that any increase to the State Pension is matched by an increase in the Pension Credit award. It would be totally wrong to find that those on Pension Credit do not get a 10% increase to their award.

What is important is what happens to the guaranteed minimum level if you fall below this so it's topped up with Guarantee Credit.
As long as "guaranteed minimum level"  rises by the same percentage then if nothing else changes you get a 10.1 uplift on both pension & GPC.

A example
A single person over pension age is left with £170 pension after any allowed expenses,  GPC would be £12.60 a  week [£182.60 (min level to live on ) - £170 (actual amount) = £12.60 GPC]

If 10.1 %  uplift  then would be a £17.20 increase to pension  so a  person would get £187.20 pension.  GPC would be a  £13.85 a week  [£201.05 (min level to live on) -£187.20 (actual amount) = £13.85 GPC] as long as guaranteed minimum level rises by 10.1%

If they froze the guaranteed minimum level, then there would be no GPC as £182.60- £187.20  would leave £4.60 over the amount that they say you need to live on.( I am not suggesting they would do this,  but just giving an example)