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State Pension Reform: £140 A Week For Everyone

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http://www.telegraph.co.uk/finance/personalfinance/pensions/8367466/State-pension-reform-140-a-week-for-everyone.html

The Work and Pensions Secretary will pledge to sweep away a host of complex rules and "fundamentally simplify" the basic state pension.

Insiders said Mr Duncan's Smith's intervention represents the start of a Coalition drive to replace the existing state pension regime with a "single tier" retirement payment.

Official estimates suggest that many women who take time out from work for family reasons are left up to £40 a week worse off by rules that base pension payments on National Insurance contributions.

Charities said a universal pension would "reduce fear for those approaching retirement."

In a speech to charity leaders and pension experts, Mr Duncan Smith will condemn the pension system as a bureaucratic mess that leaves many people confused and puts young people off saving.

His long term ambition is to replace it with a single, understandable payment.

The state pension is made up of a basic state pension, based on years of national insurance contributions, and a range of secondary "top-ups", including pension credits.

"The state pension system is so complex that most people have no idea what it will mean for them now and in their retirement," Mr Duncan Smith will say.

Ministers are known to be considering plans for a universal pension of around £140 a week.

The current system offers a basic pension of £96 a week for a single person.

A range of "top-ups" are supposed to guarantee a minimum income of £132.60, but the complexity of the rules means many people do not get everything they are entitled to.

more saga vote winning ideas at the link..

Greyheads! Whatever you do, don't sell your house.

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Ministers are known to be considering plans for a universal pension of around £140 a week.

The current system offers a basic pension of £96 a week for a single person.

A range of "top-ups" are supposed to guarantee a minimum income of £132.60, but the complexity of the rules means many people do not get everything they are entitled to.

My maths is hellishly dodgy, but that sounds like more to me.

Personally, I'd support the provision of ultra basic shelter, food and pain relief for all citizens who choose to access it, paid for by the creation of debt free money - but that's just me.

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Pension credit is £132.60 or a few pound extra.

Call it £140, what with the inflation.

They are going to rename it?

Sounds like taking away means-testing.

In other words, stop penalising people for saving. This is in principle a Good Thing, as it goes some way towards leveling off the discrimination between a house (exempt from means-testing) and an equivalent value of other assets (means-tested to oblivion).

Shorter-term affordability may be another matter.

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Shorter-term affordability may be another matter.

No affordability is not an issue , when this was first rolled out it was stated that the extra cost would come form the massive savings in the admin of the current system . The whole pension credit assesment ect is so large and so costley that doing away with it will save the money needed to give everyone the £140 p.w.

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No affordability is not an issue , when this was first rolled out it was stated that the extra cost would come form the massive savings in the admin of the current system . The whole pension credit assesment ect is so large and so costley that doing away with it will save the money needed to give everyone the £140 p.w.

This is madness. The whole point of state pensions is to create employment in the DWP.

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Administration costs are never considered when dunderheads introduce things like Pension credits. Those admin costs swell to unbelievable size in short order, and getting rid of them would save a fortune.

Instead of giving that saved fortune as tax cuts to productive enterprise, it looks like we are going to give it to unproductive slumber. Another deficit mongering policy.

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Administration costs are never considered when dunderheads introduce things like Pension credits. Those admin costs swell to unbelievable size in short order, and getting rid of them would save a fortune.

So using tax code to give tax breaks to people with kids would do away with the admin costs for tax credits?

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So the next logical step would be to abolish N.I and incorporate it into the income tax, they keep talking about cutting through red tape and this would be a perfect way of demonstrating their commitment to the cause.

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So using tax code to give tax breaks to people with kids would do away with the admin costs for tax credits?

Abolishing tax codes would be good too, tax credits is clearly an administrative nightmare, as is housing benefit, and Child Benefit too is becoming more and more complicated. How much longer can we bear the cost of administering all of this fraud?

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Higher pensions at a later age is what this is all about.

The polls show that it's a vote winner. But it disadvantages manual labourers two ways, they can't keep working into their 70's and they have a shorter life expectancy.

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Higher pensions at a later age is what this is all about.

The polls show that it's a vote winner. But it disadvantages manual labourers two ways, they can't keep working into their 70's and they have a shorter life expectancy.

Since Pensions were introduced, those who have had jobs or lifestyles that cause them to live long have been at a disadvantage. They pay tax into a system for a pension that they are less likely to get. I dont see an easy solution to that.

Are there 'annuity pensions' at all? Ones where you pay in, and the payout is different according to what you do? I imagine that you could offer an underground coal worker a lot more pension than a civil service manager.

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Higher pensions at a later age is what this is all about.

The polls show that it's a vote winner. But it disadvantages manual labourers two ways, they can't keep working into their 70's and they have a shorter life expectancy.

Indeed. Some people - like police and military - get pensions ridiculously early. Some harmonisation with other physically-demanding work would surely be in order. Maybe the expectation of a move to less physical work at about 50 rather than complete retirement.

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Abolishing tax codes would be good too, tax credits is clearly an administrative nightmare, as is housing benefit, and Child Benefit too is becoming more and more complicated. How much longer can we bear the cost of administering all of this fraud?

Trouble is, simplicity is the enemy of corruption. Thus, the absolute inevitability of a big rise in complexity under NuLab.

If the current government really do simplify substantially (as opposed to just talking about it), we should take that as a very good sign!

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Exactly. I've never understood why they don't operate a 'buddy system' whereby the desk bound older guy does more of the admin type and paper work working under the instruction of the front line officer.

Because the older guy will be paid more to do an admin job. Admin jobs are generally low paid aren't they?

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Because the older guy will be paid more to do an admin job. Admin jobs are generally low paid aren't they?

Just call it management and it magically becomes high-paid.

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Sounds like taking away means-testing.

In other words, stop penalising people for saving. This is in principle a Good Thing, as it goes some way towards leveling off the discrimination between a house (exempt from means-testing) and an equivalent value of other assets (means-tested to oblivion).

Quite so. I think this is the best thing about it. Means testing versus. not is a tricky problem, but I tend to err on the side of not. People shouldn't be penalised for being careful with money.

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:lol::lol::lol:

I don't know why you're laughing. The whole point of state pensions is to create employment in the DWP. Therefore getting rid of it is indeed madness and will cause devastation to certain areas of the UK where the DWP provides much needed employment... :unsure:

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I don't know why you're laughing. The whole point of state pensions is to create employment in the DWP. Therefore getting rid of it is indeed madness and will cause devastation to certain areas of the UK where the DWP provides much needed employment... :unsure:

YA Ed Balls AICMFP B)

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  • 285 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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