state pension increase.

hugheskevi

dealyboy said:

The general point of course is that the government 'plays' with tax rates, and pension and wage increases, but leaves the personal allowance alone. This is very gradually eroding the relative net income of the low income person compared to the median income basic rate taxpayer.

What is mooted now? ... the Tories to reduce income tax by 2%. The person on £50k gains £750 (1.5%) but a person on £15k gains £50 (0.33%) ... and the state pensioner (me) nothing.

It is cynical not to increase the personal allowance with CPI and it will backfire in a year's time when the working poor and pensioners cast their vote.

General point? If we compare 2010/11 with 2022/23:

Personal Allowance: £6,475 in 2010/11 and £12,570 in 2022/23
Tax rates: 20% and 40% in 2010/11, unchanged over time
Start point of higher rate tax: £43,875 in 2010/11, £50,270 in 2022/23 (almost the same as increase to Personal Allowance)
State Pension increases: RPI increases in 2010/11 with a political commitment to a minimum increase of at least 2.5% and ad hoc increases. Triple lock in 2022/23.
Public service pension increases: RPI increases in 2010/11, CPI increases in 2022/23
Public sector wage increases: Consistently below inflation
Minimum wage: £5.93 p/h in 2010/11 now £9.50
Public sector pension contributions: Increased by around 3-4 percentage points
National Insurance: Increased by 2 percentage points
National Insurance Primary Threshold: £5,720 in 2010/11, £12,570 in 2022/23

I don't think pensioners and working poor have much to complain about based on the above figures? The future may be different to the past though.

johnaka

did adding /deducting using my grey matter didn't quite come out as I thought.
so after working out my pension etc ,I'm £60 better of.
thanks for your replies. take care and don't worry to much it will get you in the end if you let it..

flaneurs_lobster

johnaka said:

so after working out my pension etc ,I'm £60 better of.

A week?  A month? A year? Still, an increase in any case.

maman

Altior said:

maman said:

hyubh said:

maman said:

I think people do care @Aretnap. I think it's appalling that the government allow the pay of, for example, teachers and nurses to be constantly eroded but begrudge them a decent pay rise while awarding pensioners 10%+. That's because they expect pensioners to vote for them. How wrong can you be! 🤣

Both teachers and nurses benefit from unfunded public sector pensions that increased by more than 10.1% though...? (Active member revaluation in their respective CARE schemes being CPI+1.5%)

I agree the pensions are a good benefit (if people stay that long because of ever worsening working conditions) but 'jam tomorrow' doesn't pay today's bills. 

Fortunately the highly skilled and educated, but overworked and underpaid teachers and nurses can get jam today in the private sector. Unfortunately, they would have to give up the (actually) lucrative conditions that come with working in the public sector, which is why I assume they remain in the public sector. 

Many remain, but loads don't and are either voting with their feet and retiring, going part time, leaving the professions altogether or going to the private sector or abroad. That's without those who are choosing not to train in the first place, hence recruitment targets being missed year on year. 

hyubh

maman said:

hyubh said:

maman said:

I think people do care @Aretnap. I think it's appalling that the government allow the pay of, for example, teachers and nurses to be constantly eroded but begrudge them a decent pay rise while awarding pensioners 10%+. That's because they expect pensioners to vote for them. How wrong can you be! 🤣

Both teachers and nurses benefit from unfunded public sector pensions that increased by more than 10.1% though...? (Active member revaluation in their respective CARE schemes being CPI+1.5%)

I agree the pensions are a good benefit (if people stay that long because of ever worsening working conditions) but 'jam tomorrow' doesn't pay today's bills. 

The CARE schemes are pretty great regardless though. Even if you stay less than two years, you get a decent transfer value to take with you.

'jam tomorrow' doesn't pay today's bills. 

At the bottom end it's perfectly possible for a public sector worker to be paid more in retirement than when they were working (CARE occupational pension + single tier state pension; in the past they would have had a contracted out deduction, but not any more). When will the government (of any stripe) bite the bullet and get through exchanging some of the pension accrual for higher take home pay, I wonder...?