Mini Budget aka Fiscal Statement

[Paddy]

Is this a fair summary?

Reach 67 with little or no state pension, no savings, renting. Pension credit will top up your income to virtually full state pension (FSP). Housing benefit will cover most of your rent. Big council tax discount.

Reach 67 with FSP, no savings, renting. Worse off because you won't qualify for as many benefits?

Reach 67 with FSP, no savings, home owner with mortgage. Worse off than if you were renting?

Because benefits and council tax discount are means tested, there doesn't seem much incentive to have savings.

This is exactly what happened with my mum (rip) She worked part time but voluntarily paid full NIC. When retired she had a full state pension and some savings, the mortgage was paid off. She had no benefits.
Her sister had very few NICs and therefore her pension was topped up with pension credit support. That entitled to her have her rent paid plus other benefits. So my auntie who did not work and saved nothing was much better off.

Edit: when I chat to my European friends about UK state pensions they are shocked on how badly the government treat pensioners.

[DealorNoDeal]

They don't.

Well they get loaned money that covers part of the interest.....

Is this a fair summary?

Reach 67 with little or no state pension, no savings, renting. Pension credit will top up your income to virtually full state pension (FSP). Housing benefit will cover most of your rent. Big council tax discount.

Reach 67 with FSP, no savings, renting. Worse off because you won't qualify for as many benefits?

Reach 67 with FSP, no savings, home owner with mortgage. Worse off than if you were renting?

Because benefits and council tax discount are means tested, there doesn't seem much incentive to have savings.

[Paddy]

Oh for the good old days; 2p tax increase on beer, 5p tax increase on cigarettes , 2p tax increase on petrol and 1p on income tax

[AtW]

“Income taxes to rise by £21bn despite Budget cuts

The average household will be £1,450 per year worse off after stealth raid, according to the IFS

The Treasury will impose an additional £21bn of income taxes despite Liz Truss's "tax-cutting" mini-Budget, a detailed analysis released on Thursday has revealed.

The average household will be £1,450 per year worse off as a result of the stealth raid, according to the Institute for Fiscal Studies (IFS) think tank.

The typical basic rate taxpayer will pay an added £500 in income tax and National Insurance per year by 2026 while higher rate earners are facing a £3,000 annual increase.

The figures are based on analysis of the decision by Kwasi Kwarteng to freeze tax thresholds, which in three years' time will deliver an extra £41bn to the Exchequer amid high inflation and rising wages. Meanwhile, his cuts to personal taxes will be worth only £20bn.”

https://www.telegraph.co.uk/business...e-budget-cuts/

[AtW]

“Fitch threatens to downgrade UK's credit rating following mini-Budget

Chancellor's decision to scrap cut to 45p tax rate also "weakened" credibility of Liz Truss's administration, agency says”

https://www.telegraph.co.uk/business...g-mini-budget/

[SueEllen]

No but we haven't got a big mortgage (c. £300/month).

It would be difficult managing on 2xpension with a large mortgage or rent. My auntie gets by on a single state pension but she receives housing benefit which covers most of the rent. Don't know if home owners would get help with mortgage.

They don't.

Well they get loaned money that covers part of the interest.....

[DealorNoDeal]

Do you own your home outright?

No but we haven't got a big mortgage (c. £300/month).

It would be difficult managing on 2xpension with a large mortgage or rent. My auntie gets by on a single state pension but she receives housing benefit which covers most of the rent. Don't know if home owners would get help with mortgage.

[SueEllen]

If your spouse dies you get widow/widower state pension.

If you have a normal private pension your spouse normally gets a survivors pension.

What's a "normal private pension"?

[Whorty]

If your spouse dies you get widow/widower state pension.

Not strictly true. It depends on a couple of factors ... like were they receiving their pension (or could but deferred) and have you started cohabiting with someone else. So possible, but not always the case.

If you have a normal private pension your spouse normally gets a survivors pension.

Again ... depends on a lot of factors. If final salary then yes, likely but not full pension only a percentage.

If money DC, then will depend if they have started to draw down, or if taken an annuity how it works ... but you'd get the value of the pension pot if not started to take any or don't have an annuity.

So not quite as black and white as you make it I'm afraid.

[vetran]

Why are you answering a totally different question to the one I asked?

If your spouse dies you get widow/widower state pension.

If you have a normal private pension your spouse normally gets a survivors pension.

So its not £200 initially and if you have taken out a private pension you get more.

I just pointed out circumstances may differ.