Mini Budget aka Fiscal Statement

[d000hg]

Should benefits increases match price inflation (say approx 10% increase) or working people's wages (probably nearer to 5% increase)?

Just asking for a Tory friend.

Benefits should always be enough to survive on. Arguably the least you need to have a heated home and food. If benefits are not enough, people face illness or even death if they cannot find work. I'm not a huge fan of the benefits-as-cash system but since that's what we have, it should probably be set by someone independent of government so it can't be politicised.

[WTFH]

Should benefits increases match price inflation (say approx 10% increase) or working people's wages (probably nearer to 5% increase)?

Just asking for a Tory friend.

Check with your Tory friend if the consider state pensions to be benefits

[Paddy]

Check with your Tory friend if the consider state pensions to be benefits

Currently state pensions are not considered as benefits which is rather ridiculous eg If a person is on full state pension £175 pw (?), there will not receive any benefits. Conversely, someone who worked part time and does not get a full pension will get (say) £80pw plus a pension credit (a benefit) it will then be £175 pw and allow for other benefits. In other words, if you pay all your full NAT INS, you do not get benefits, in fact you get less

[Gibbon]

Currently state pensions are not considered as benefits which is rather ridiculous eg If a person is on full state pension £175 pw (?), there will not receive any benefits. Conversely, someone who worked part time and does not get a full pension will get (say) £80pw plus a pension credit (a benefit) it will then be £175 pw and allow for other benefits. In other words, if you pay all your full NAT INS, you do not get benefits, in fact you get less

Pension credits are means tested. I know people who have been shafted by having small private pensions and are worse off than those with none as there is other stuff that comes along with pension credits. But then again, many elderly widows were not encouraged to work (or actively discouraged) and so couldn't build up their full entitlement.

Also you can if you carry on working past state pension age you can increase the pension by deferring it. My Mum did this as she worked until 65 (SPA = 60 then) and it went up a lot to the point she got got called rich b*tch when collecting it from the PO one time.

[DealorNoDeal]

Currently state pensions are not considered as benefits which is rather ridiculous eg If a person is on full state pension £175 pw (?), there will not receive any benefits. Conversely, someone who worked part time and does not get a full pension will get (say) £80pw plus a pension credit (a benefit) it will then be £175 pw and allow for other benefits. In other words, if you pay all your full NAT INS, you do not get benefits, in fact you get less

Full state pension is £185.15/week. Credit tops up to a bit less, £182.60. It's not so good if you have a partner though; it only tops up to £278.70 joint (compared to 2 * full pension of £370.30). And, of course, it's means tested, so reduced if you have savings. You also can't get it if you retire abroad.

We looked into this before topping up my wife's NI contributions.

[_V_]

Check with your Tory friend if the consider state pensions to be benefits

My Tory friend says the State Pension is not considered a benefit because:

To get the basic State Pension you must have paid or been credited with National Insurance contributions.

Those who qualify under the new system from April 2016 onwards will have to be credited with a minimum of 10 years of NI contributions, either through paid employment, from raising a family, by caring for a sick or disabled person or being enrolled in approved training schemes. Once you reach the minimum amount of years you will receive 10/35ths of the full rate which is currently £168.60. Each additional year (s) of NI contributions/credits will increase your starting amount by a commensurate amount based of the above calculation. Those who are credited with 35 years or more will receive the highest available amount.

[WTFH]

My Tory friend says the State Pension is not considered a benefit ...

Your Tory friend is incorrect, and while they may have sent you a web page which doesn't mention the word "benefit", the legislation certainly does.
Pensions Act 2014. Chapter 19, section 1

State pension

(1)This Part creates a benefit called state pension.

https://www.legislation.gov.uk/ukpga/2014/19/section/1

The old act (Social Security Contributions and Benefits Act 1992) put pensions under Part 2, Contributory Benefits
https://www.legislation.gov.uk/ukpga/1992/4/part/II


I hope that benefits your friend's education.

[_V_]

Your Tory friend is incorrect, and while they may have sent you a web page which doesn't mention the word "benefit", the legislation certainly does.
Pensions Act 2014. Chapter 19, section 1


https://www.legislation.gov.uk/ukpga/2014/19/section/1

The old act (Social Security Contributions and Benefits Act 1992) put pensions under Part 2, Contributory Benefits
https://www.legislation.gov.uk/ukpga/1992/4/part/II


I hope that benefits your friend's education.

My friend is a Tory, and hence of low edjukation and IQ.

[SueEllen]

My friend is a Tory, and hence of low edjukation and IQ.

I hope your friend isn't friendly with our glorious leader....

[DealorNoDeal]

Once you reach the minimum amount of years you will receive 10/35ths of the full rate which is currently £168.60.

Actually £185.15. Will be over £200 from next April due to triple lock (10% inflation).