State and private pensions have gone up, but I'm worse off

Veloflyer

https://forums.moneysavingexpert.com/discussion/comment/81974836#Comment_81974836

I'd concur with the latter point, and would certainly encourage reading up about any such topic beforehand, but at the risk of being quarrelsome, I do think many folk make some effort, but would perhaps find even simple tax/pensions stuff difficult to understand regardless. I still do not understand how my tax code was arrived at - even though I have read many articles about it and have received an "explanation" from HMRC. Hence all the threads on these forums which require more detailed explanations. It is perhaps a question of understanding your audience.

Moonwolf

https://forums.moneysavingexpert.com/discussion/comment/81974721#Comment_81974721

Tax is easy to make simpler until politically it isn’t.

We should be taxed individually - but why should I be taxed at 40% on income over £50,000 while my partner does childcare while that couple each earn £40,000 but they pay less tax.

Why should we give a rich person that universal benefit that they more than pay for in their tax, I know we will introduce a ridiculous and expensive to administer child benefit threshold and winter fuel test.

Oh, those people are fiddling the business expenses system to get most of their meals paid for, lets bring in complex rules about clients being present and or working away from home.

Let’s try and tweak behaviour by having a special tax allowance, now try and take it away 20 years later or adjust it to encourage a different behaviour.

With any change, even simplification it is likely there will always be winners and losers, and the press would want to hit the politicians with the losers. For example, scrapping NI and recovering the same tax take from income tax would simplify tax, but pensioners would pay more tax while workers would pay less.

Whatkindoflife

https://forums.moneysavingexpert.com/discussion/comment/81974238#Comment_81974238

I think this explanation seems the most likely one and I hope it is. What is confusing though is that my pension company and HMRC have both confirmed that the 20% tax on the annuity will result in a £77 monthly deduction which still leaves me with a £30 shortfall each month if my SP increase actually does increase to £46.96, unless there is a later adjustment to ensure I am not out of pocket.

Whatkindoflife

I think you may have missed the single quotes on the word rich. Obviously, the least well off are going to suffer most.

You're making a few assumptions here too. I do have an online account and have been through all the information provided and googled further and contacted HMRC direct, so the horse is well-watered.

My query was simply around the apparent discrepancies in my first payment and there's nothing about this in any literature and that's why I ended up here. I'm very grateful to those who have come up with technical reasons why this may have happened.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81975595#Comment_81975595

To be perfectly honest unless you provide all the relevant details it's impossible to understand or explain what has happened.

You might be paying more tax under PAYE now than seems logical but there might be extra still to pay for last year (2025/26) which hasn't been quantified yet.

xylophone

Perhaps life is easier if a pensioner is paid weekly.

I know a couple in their seventies both of whom are on OSP.

One has a Monday payment day and is on a weekly in advance arrangement and the other a Tuesday payment day weekly in arrears.

Mrs received her first payment at the 26/7 rate on 2nd April (Monday 6th being a Bank Holiday) and Mr on !4th April.

Both have occupational pensions (payable 1st month) and their tax codes for 26/7 (lower than for 25/26) will be applied to their 1st May payments.

Their OP payments will not increase until later in the year in accordance with Scheme Rules.

Mr was interested to note that despite nearly forty years in a DB OPS (including the years 78/97) and a substantial COD, a small sum of Grad and some Additional State Pension give him SP for 26/7 slightly higher than full NPS.

squirrelpie

Perhaps life is easier if a pensioner is paid weekly.

As a pensioner I would definitely say yes. If for no other reason than I prefer to have the money in my bank account than in the government's!

GunJack

Must say I am considering taking SP weekly when I get there, with 2 DB pensions that will be in payment by then both of which will be paid monthly but on different dates...just to spread the income out a bit 🙂

luvchocolate

Remember you actually have to request it's paid weekly

.it's not usually offered

Stubod

..always had mine and Mrs Stubods paid weely….can't understand why you wouldn't??