Martin's suggestion for winter fuel allowance

MP1995

sammyjammy said:

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.

I agree with this and the comments you may get back are...."have you ever moved at an old age" and many more excuses when really this is all about retirement planning and doing that last move and downsize as part of pension planning imo when you are able.

At early 40's we have our retirement mapped out and we know our downsize comes at 65 and that's one or two moves away unless some other plans to buy neighbours land come to fruition.

We refuse to hoard as well to make that move easier.

Swipe

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.

You'd like to think so, but I just heard on the radio that they didn't even carry out an impact assessment prior to announcing the removal of it.

spot1034

SAC2334 said:

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 .

The predictions for the October price cap were always for a rise - even as the July figure was announced, it was made clear that the fall at that time was expected to be temporary.  https://www.moneysavingexpert.com/news/2024/05/martin-lewis--energy-price-cap-to-fall-in-july/

You may be thinking of earlier predictions for the July price cap which were for a bigger fall than eventually happened due to prices starting to rise during the assessment period. We were at a low around February/March, which I suspect can just be put down to an overshoot on the downside, as often happens with markets when there is a significant move either down or up.

wrf12345

I have one house move left, when I do it, will be electric only and then off grid with solar/battery and wood-burner for heat plus super insulated house. Won't cost me anything as will be downsizing and pocketing a whole load of dosh in house price difference. Something to look forward to...

Brie

sammyjammy said:

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.

I quite agree in theory that people should downsize but those I see in this situation are in family homes that they are clinging on to for very emotional reasons.  And who live in hope of leaving them to their children.  

The first situation I get.  If you've lived somewhere, brought up a family, had a spouse die, lots of memories, want to have the grandkids visit so need a bit of space - well that's all understandable.

The second I have little sympathy for.  If you are bordering on freezing to death in the winter so that your kids can benefit and they don't try to convince you to move the kids don't deserve any inheritance.  

Swipe

wrf12345 said:

I have one house move left, when I do it, will be electric only and then off grid with solar/battery and wood-burner for heat plus super insulated house. Won't cost me anything as will be downsizing and pocketing a whole load of dosh in house price difference. Something to look forward to...

I wouldn't bank on the wood burner. It's only a matter of time before they are outlawed.

JohnSwift10

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.

It is all very well saying that.

I, an almost 80 year old and my wife of 78 looked into downsizing a few years ago as we live in a band E house in Scotland.

After looking at 1 and 2 bedroom bungalows we would have had to find an additional £30,000 or more to pay the solicitor and stamp duty etc than we would get for our present home, which no one would lend us, and get rid of most of our furniture as it wouldn't fit in a new smaller home, our dining table was bigger than some of the dining rooms, 

We decided it wasn't worth the hassle for two people in their 70's to move house.

And we missed out on the free TV licence.

MP1995

JohnSwift10 said:

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.

It is all very well saying that.

I, an almost 80 year old and my wife of 78 looked into downsizing a few years ago as we live in a band E house in Scotland.

After looking at 1 and 2 bedroom bungalows we would have had to find an additional £30,000 or more to pay the solicitor and stamp duty etc than we would get for our present home, which no one would lend us, and get rid of most of our furniture as it wouldn't fit in a new smaller home, our dining table was bigger than some of the dining rooms, 

We decided it wasn't worth the hassle for two people in their 70's to move house.

And we missed out on the free TV licence.

Hence an earlier post I made that these decisions need to be made early in pension planning and not when it is too late.

JosephK

Wait for the Civil Servants charged with running the system for abolishing winter fuel allowance except for those on pension credit to make it more administratively expensive than retaining it as it was.

Ildhund

Swipe said:

... the WFA reinstated. 

This would suggest that the WFA had been (or will be) abolished. That isn't the case, and much of the drivel that we've seen in the media since the change was heralded has been based on a (wilful?) misunderstanding of what is involved. 

The government decided at some stage to establish a minimum acceptable income for older people (Gordon Brown's Minimum Income Guarantee). This is higher than the State Pension, so Pension Credit was invented to make up the difference. I'm not sure what the acceptable minimum is now, but it's clearly around £220 pw for a single person living alone. Anyone whose income (adjusted for the value of any savings) exceeds this isn't eligible for PC and in consequence won't receive the WFA this year. 

This means that there are a number of pensioners whose income is above the minimum who will miss out this year. In the very worst case, it means their annual income will be 1.3% lower, with that percentage shrinking for higher incomes. It's nonsense to present pictures of shivering pensioners no longer able to afford to switch the heating on because of this; WFA might buy you less than a pint of bitter a week, so doing without that is hardly headline-making hardship.