A proposed new flat rate pension, in the UK, scheduled for 2017, will be simpler claims the Coalition government. That may be but, as they have also maintained that they will cost no more, there must be winners and losers?
The latest news is that if you are already in receipt of your pension in the UK, or will be before 2017, you will not receive the new flat rate pension. For you it will be business as usual. There had been reports that this would not be the case but in the end it seems the Condems have opted for this.
The details will be revealed to Parliament today and so may yet be changed. Yesterday it was reported that there will be many other losers.
We reported for Digital Journal that,
Government proposals to introduce a flat-rate pension have received a mixed response. A report in the Guardian claims, 'Proposed flat rate state pension of £155 per week for all could mean higher national insurance contributions, an effective tax rise of 1.4p in the pound'. The figure of £155 has already been downgraded. It is now equivalent to £144, reports the Independent.
When you look at the fine details it is difficult to assess the point of these changes. If it will not cost any more it is not part of the Coalition's austerity measures, or is it. They have not said that the changes will not reduce the pension bill, have they?
A wide-range of benefits aimed at helping the poorest pensioners in society will go. Will the new flat rate pension will the gap or is that more pie in the sky?
Once again it is a change for 2017 which means that the proposed changes are more liklely to be simply more spin and viote grabbing politics. Can you 100% trust the Tories to implement new policies in 2017, even assuming they won a majority at the next election? They could of course makes any range of excuses for not doing so and changing their plans.
Along with a proposed referendum on the EU, to be held after the next election given certain circumstances, are the proposals anything more than electioneering? We doubt it.
If the pension reform goes ahead 'It is estimated that higher national insurance contributions will mean, in effect, a tax rise of 1.4p in the pound, for more than 6 million workers.'
OPINION: Seems a lot of jiggory pokery rather than simply increasing pensions full-stop. Of course, anything rather than hit the fat-cats who got us into this mess!
Based in Yorkshire, in the middle of the UK, almost, this blogger offers her own unique perspective on life in GB
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