Martin's suggestion for winter fuel allowance

Brian3357

The suggestion that council tax bands are used to determine who should receive the winter fuel allowance is ludicrous. There is little correlation between council tax band and ability to pay for energy. Many pensioners in band e or f are asset rich but cash poor

wrf12345

He did say it was just an opening suggestion but it would have to be handled by the councils, anyway, and they would not deliver it before this winter and should not be let near govn databases, anyway. The govn does not want to give money to asset rich and income poor pensioners, and it does not want to give money to people with savings in ISA's (which would not be reflected in income in their databases) so it can not direct money to people based on the IR databases, other than where the individual has shown they are able to claim benefits. You have several different IT systems not really talking to each other and no access to the council tax bands, either. You could give it to people with overall incomes under say 16k (ignoring ISA income) but that would mean some people who get a good income from their ISA's would also receive it - the exact opposite to what the govn wants to promote. The Conservative gave various handouts to everyone because they could not narrow it down using existing IT sources (which probably cost five to ten times as much as the private sector without actually working properly).

Swipe

Since the announcement of the October cap increase, the government is under increasing pressure over this decision. I really wouldn't be surprised if this is overturned and the WFA reinstated. Even the Guardian newspaper has turned on them over this.

spot1034

Swipe said:

Since the announcement of the October cap increase, the government is under increasing pressure over this decision. I really wouldn't be surprised if this is overturned and the WFA reinstated. Even the Guardian newspaper has turned on them over this.

They would have been well aware that this was coming though. It was hardly a secret that the price cap was set to increase significantly - in fact, I'd suggest it might have been a factor in Rishi Sunak calling the election in July.

I suppose one thing they could do is reinstate it but make it taxable like the state pension itself, which would at least see some of the money being clawed back from the better off. 

MP1995

The concern for me is the pensioners that just miss out are just above the line of not being able to claim pension credit or some kind of other eligible benefit?

I do feel very sorry for these pensioners as it isn't just the winter fuel allowance but the extra money now they will have to spend on fuel this winter duento the price cap increase. As they will use most of their fuel during winter they could find themselves £500-£600 worse off. 

twopenny

How would being taxable affect the better off?

I'm one of the strugglers over bills and a pension and I'd have to pay the same tax on the £200/300 as someone who's rolling in it.

Dazed_and_C0nfused

twopenny said:

How would being taxable affect the better off?

I'm one of the strugglers over bills and a pension and I'd have to pay the same tax on the £200/300 as someone who's rolling in it.

If you are already liable to 40/42/45/47% tax I would hardly class you as a struggler!

t0rt0ise

It's a daft suggestion. Lots of people rent and the council tax band has nothing to do with their wealth or lack of it. Many rental properties including Housing Association properties in London have high tax bands and the occupants are not well off.

sammyjammy

Brian3357 said:

The suggestion that council tax bands are used to determine who should receive the winter fuel allowance is ludicrous. There is little correlation between council tax band and ability to pay for energy. Many pensioners in band e or f are asset rich but cash poor

If they are asset rich and so cash poor that they can't manage without £300 once a year then maybe they should seriously consider downsizing.  I know its something some people won't consider  but it is a choice they make.

sammyjammy

Swipe said:

Since the announcement of the October cap increase, the government is under increasing pressure over this decision. I really wouldn't be surprised if this is overturned and the WFA reinstated. Even the Guardian newspaper has turned on them over this.

I don't think they will (or should), in fact Scottish Government have now announced they will follow suit.   They have reinforced the need for people to check if they have entitlement to PC.

SAC2334

spot1034 said:

Swipe said:

Since the announcement of the October cap increase, the government is under increasing pressure over this decision. I really wouldn't be surprised if this is overturned and the WFA reinstated. Even the Guardian newspaper has turned on them over this.

They would have been well aware that this was coming though. It was hardly a secret that the price cap was set to increase significantly - in fact, I'd suggest it might have been a factor in Rishi Sunak calling the election in July.

I suppose one thing they could do is reinstate it but make it taxable like the state pension itself, which would at least see some of the money being clawed back from the better off. 

In the earlier part of the three month cycle the October price cap was being predicted to be going down not up so I m not sure that anyone was "well aware " what it was going to be . Personally I can t see Labour back tracking on this and going for M.L idea of council tax bands . D for intance are quite wealthy properties in my area . I m on basic pension of £8952  a year but have savings I need to keep to pay for private eye operations in the future and can t claim PC . Glad to see that train drivers on an average of £81000 a year got a rise which they really need badly more than me .