AvidFan Posted May 24, 2006 Share Posted May 24, 2006 Apologies if this has been posted previously... http://www.belfasttelegraph.co.uk/news/bus...sp?story=692422 Pensions 'stealth tax' condemned 24 May 2006 Workers will pay thousands of pounds a year for a benefit they will no longer receive under the Government's pensions reforms, it was claimed today. The Tories have calculated that a hidden "stealth tax" in the plans would hit anyone earning over £18,000. Work and Pensions Secretary John Hutton is expected to unveil his White Paper proposals - which he says represent the biggest shake-up for 50 years - today. The second pension part of retirement benefits would be halved to a flat payment of £60 a week by 2033 under reforms put forward by the Turner Commission, the reports said. But National Insurance contributions would not be reduced, which means that by that date workers on earnings of £18,000 would be paying £468 in National Insurance for benefits they would no longer receive. Shadow Work and Pensions Secretary Phil Hammond told the Daily Telegraph: "This amounts to another stealth tax on middle income earners. "Even someone on £18,000 will feel the bite. "At present, nearly half of employee National Insurance contributions go towards an earnings-related second pension." Mr Hammond added: "Under the Government's proposals that contribution will become a straight tax on income." A Department for Work and Pensions spokesman said: "The Government has confronted the difficult issues in terms of pensions and is about to bring forward a comprehensive package of reforms for the long term. "It would be sensible to wait for the publication of the White Paper to view the proposals as a whole." Whitehall insiders said that the changes in the Second State Pension were a key element of Lord Turner's crusade to simplify one of the most complex pension systems in the world. They said that Lord Turner has argued that his pension reforms need to be introduced as a single package and warned about the dangers of 'cherry-picking' particular proposals ...and also: http://today.reuters.co.uk/news/newsArticl...&archived=False Do people not realise their futures are being stollen from them? WHY do people keep spending as though it's all going to work out fine? Quote Link to comment Share on other sites More sharing options...
CrashCrash Posted May 24, 2006 Share Posted May 24, 2006 Apologies if this has been posted previously... http://www.belfasttelegraph.co.uk/news/bus...sp?story=692422 Pensions 'stealth tax' condemned ...and also: http://today.reuters.co.uk/news/newsArticl...&archived=False Do people not realise their futures are being stollen from them? WHY do people keep spending as though it's all going to work out fine? These days nobody bother with pension as they have houses to look after them Quote Link to comment Share on other sites More sharing options...
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