The Next Labour Govt In London

[Ringy Rose]

6 minutes ago, Cambon said:

The cost of administering it will be more than the cost of the payments.

That’s why they’ve tied the eligibility test to eligibility for another means-tested benefit: Pension Credit. You get the heating bonus if you get Pension Credit, and if you don’t you don’t.

The admin cost is already there, so cutting eligibility is pure savings.

Edited July 31 by Ringy Rose

[P.K.]

35 minutes ago, Cambon said:

Not really. The cost of administering it will be more than the cost of the payments. Simple economics. 

@Cambon

Well Reeves has to plug the £22bn odd hole in the public finances that the Treasury "forgot" to tell the OBR about...

[Fred the shred]

Means testing yes but there are lots of pensioners who are not eligible for pension credits but still do not have enough income to pay income tax .    The fairest way would be that anyone regardless of age who could provide an Income Tax form saying that they owed nothing would be eligible for a free TV licence  age should not come into it .   The same for heating allowance.

 

 

[Anyone]

I think it’s the cut off that is the problem. If you have the max state pension ( and no other income or savings ) you don’t get the allowance. The max state pension is about 55% of the minimum wage. So I’d argue those on between max state pension and minimum wage should get it. That’s the problem with means testing though. It’s very difficult to do especially savings. So hence the crude cut off of pension credit , which in itself is hard to get. So labour are potentially removing a benefit from the most vulnerable in society and admittedly the least deserving (ie rich pensioners). But then 5 years from now a lot of them won’t be around to vote.

[doc.fixit]

I think it's awful and very unfair htat if youh ave tried to save a bit and still live withing your means that you are penalised.  If however you are impecunious and throughout your life don't give a fig to saving and living within your means, you get additional state hand outs.

[Non-Believer]

1 hour ago, P.K. said:

@Cambon

Well Reeves has to plug the £22bn odd hole in the public finances that the Treasury "forgot" to tell the OBR about...

Ah, but £9Bn of that 22 is to pay for the public sector payrises that they've announced. As it was said by the commentators, "That's a choice, not an inheritance".

[Albert Tatlock]

5 minutes ago, Non-Believer said:

Ah, but £9Bn of that 22 is to pay for the public sector payrises that they've announced. As it was said by the commentators, "That's a choice, not an inheritance".

And it is £9Bn every year, plus whatever pay percent is added to it each year.

[Cambon]

2 hours ago, P.K. said:

@Cambon

Well Reeves has to plug the £22bn odd hole in the public finances that the Treasury "forgot" to tell the OBR about...

They didn’t. It is basically income and savings lost due to labour cancelling certain current projects. Reeves isn’t bothered really, giving inflation busting rises left, left and centre left. 

[John Wright]

1 hour ago, Non-Believer said:

Ah, but £9Bn of that 22 is to pay for the public sector payrises that they've announced. As it was said by the commentators, "That's a choice, not an inheritance".

 

1 hour ago, Albert Tatlock said:

And it is £9Bn every year, plus whatever pay percent is added to it each year.

 

7 minutes ago, Cambon said:

They didn’t. It is basically income and savings lost due to labour cancelling certain current projects. Reeves isn’t bothered really, giving inflation busting rises left, left and centre left. 

Except the majority of the wage increases are recommended by independent pay review bodies. That they’re higher than current inflation is, in part, due to pay falling well behind over 14 years of austerity.

The junior doctors award is over 2 years, not all at once. And with tax free allowances  frozen, direct tax take, and VAT, has increased with inflation.

Of course, in UK, where there isn’t a real NI fund, the Tories cut NI substantially, but never explained how they would continue to pay triple locked pensions or other related benefits.

The Tories have paid off their friends, and made the ordinary workers pay more and receive fewer and poorer services over the last 14 years. 

It’s pretty clear what is going to happen, CGT at income tax rates, and many allowances removed, IHT increased and allowances and reliefs removed, NI on higher incomes, higher rates of Corporation Tax, tax at penal rates on bonuses, taxation on international businesses based on turnover rather than allowing profits to be siphoned off to Ireland or Luxembourg.

I know that fiscal responsibility is a mantra, but look what Labour did and achieved between 1945 and 1950 with an even more shattered, bankrupt, overborrowed economy. 

[Non-Believer]

38 minutes ago, John Wright said:

The Tories have paid off their friends, and made the ordinary workers pay more and receive fewer and poorer services over the last 14 years.

This sounds familiar, must be where Alf is getting it from.

[Banker]

1 hour ago, John Wright said:

 

 

Except the majority of the wage increases are recommended by independent pay review bodies. That they’re higher than current inflation is, in part, due to pay falling well behind over 14 years of austerity.

The junior doctors award is over 2 years, not all at once. And with tax free allowances  frozen, direct tax take, and VAT, has increased with inflation.

Of course, in UK, where there isn’t a real NI fund, the Tories cut NI substantially, but never explained how they would continue to pay triple locked pensions or other related benefits.

The Tories have paid off their friends, and made the ordinary workers pay more and receive fewer and poorer services over the last 14 years. 

It’s pretty clear what is going to happen, CGT at income tax rates, and many allowances removed, IHT increased and allowances and reliefs removed, NI on higher incomes, higher rates of Corporation Tax, tax at penal rates on bonuses, taxation on international businesses based on turnover rather than allowing profits to be siphoned off to Ireland or Luxembourg.

I know that fiscal responsibility is a mantra, but look what Labour did and achieved between 1945 and 1950 with an even more shattered, bankrupt, overborrowed economy. 

We can probably expect Alex to try some of these particularly NI on higher incomes.

[John Wright]

Just now, Banker said:

We can probably expect Alex to try some of these particularly NI on higher incomes.

Yes, the cap will be removed, and pensioners aged over 67 will be subject to Employers and employee NI.

[Banker]

Labour also looking to get public accessible beneficial owners registry 

https://guernseypress.com/news/2024/07/31/new-uk-government-sets-sights-on-transparency-with-crown-dependencies/

[Anyone]

Can’t think how pensioners will be subject to employer and employee NI if they don’t work. Levied on pensions? State and private? And investment income like bank interest  and dividends ? And with no employer to pay the employer NI it’s going to be a big bill for those paying it with no employer.  Sounds complicated and possibly hard to enforce. Maybe labour only plan to govern for those who voted for them and those who will vote for them in the future.

[Roger Mexico]

1 hour ago, Anyone said:

Can’t think how pensioners will be subject to employer and employee NI if they don’t work. Levied on pensions? State and private? And investment income like bank interest  and dividends ? And with no employer to pay the employer NI it’s going to be a big bill for those paying it with no employer.  Sounds complicated and possibly hard to enforce. Maybe labour only plan to govern for those who voted for them and those who will vote for them in the future.

Those over state retirement age don't pay any Employee NI on their wages if they work.  Employers still have to pay Employers NI contribution on those wages however.