Monday, 14 December 2009

The State Pension Facts



I know I seldom read government documents such as the pre-budget report Alistair Darling announced last week, because I expect the media to provide me with the facts.

The chancellor said, "basic state pension will not be frozen, but will rise by 2.5% in April". Fine I thought. How silly of me to believe what anyone in the Westminster government says.

Nowhere did his speech - or the hundreds of pages of pre-budget - mention the fact that the parts of the state pension which do not count as "basic" would be frozen.

The DWP has confirmed that the small earnings-related supplement called graduated pension, which is paid to more than 10 million people, will also be kept at this year's level. The pensions minister said the decision to freeze extras, such as Serps (State Earnings Related Pension) was taken because otherwise it would have, "created an unlevel playing field between the public and private sector".

She continued to say there would have been "confusion and unfairness" because Serps affect company pension payments and there may have been a difference of approach between public sector pensions and occupational ones partly related to some firms freezing pensions. I'm expected to believe this, or perhaps not. Surely the chancellor doesn't expect me to accept a policy made on the assumption that some private businesses may freeze pensions.

No other benefits are expected to be frozen in April. The chancellor has already announced that Child Benefit and some disability allowances will rise by 1.5% in April despite the fact that the Retail Prices Index showed inflation below zero in September when the annual rise in benefits is fixed.

This underhand and shabby behaviour from the chancellor could potentially save the Treasury £350m in 2010/11.

Meanwhile this weekend Gordon Brown announced to the world that Britain will contribute £1.5 billion towards 'climate change' and our energy bills will be increased with the implementation of further 'green' taxes. When will it ever end?

12 comments:

Apogee said...

Hi SR
Very well said. Another load of miss-leading half truths by a discredited government.
People should remember that the Westminster government, by TOTAL miss-management of the economy,got us into this mess in the first place.
They now propose to give away one and a half BILLION pounds of OUR money on a scam,"climate change" where the "settled science" is unravelling as we watch.
So they rip off the pensioners for three hundred and fifty million to give away,for what? a scheme/scam which appears to be for no defined purpose? Its time this government got a reality check and stopped wasting our money!

subrosa said...

Hi Apogee too right. What's more annoying is that this freeze of SERPS is nowhere to be found in the PBR statement. Fortunately we still have investigative journalists around who received the information from the DWP.

Why the cover-up? After all it isn't a huge amount of money per person is it?

Because cover-up and cock-up are this government's stock in trade.

Oldrightie said...

One of the hidden taxes is that of keeping tax allowances very, very low. Still at it and that is a massive tax hike and no one ever notices!

Oldrightie said...

Rather like the levying of fuel duty on the VAT element!

subrosa said...

Yes OR I should have mentioned that again in the post. My apologies.

Crinkly & Ragged Arsed Philosophers said...

Good to see you're back as a keyboard warrior.

The PBR was a joke and a seasonal one at that in as much as it was more Panto than drama.

The only factor which allowed inflation to zero out was the mortgage interest bonanza which saw the mortgage yuppies gaining hundreds per month in their disposable income.

Few pensioners or other members of the underclass are servicing large mortgages. For them they have to set off the 43% domestic fuel increases, the effects of a 27% devaluation of the pound, the concomitant rise in imported food prices by increasing their shiver rate or decreasing their food intake.

Problem is there's just too many of the underclass. While the banks get welfare in the trillions because they're to big to fail-though, unfortunately, deemed not big enough to repay; the underclass are too many to be eased from the pens of existence.

Short sighted? More like plain stupid. A try on being stretched to the limits of credulity. Put every pension or genuine benefit up by £50 per week and within six days 98% of it is back into the economy.
You can't say the same for the wealth lavished on the wealthy.
The rich don't spend they acquire assets.

Time I think for a little civil disobedience to level the scales of democracy. Or has apathy gobbled all the biscuits?

Crinkly & Ragged Arsed Philosophers said...

Just a minor point.

Once the election dirty deed is done and dusted Vat will be increased to 20%. No matter who gets in.

Westminster would rather keep its AAA credit rating than achieve an AAA contentment rating for the people it supposedly serves.

Dramfineday said...

Tax and squander - labour through the years

tris said...

I heard the vacuous muppet of a minister telling us that inflation was at -1.4% (although she said -1.5% too so I don't know which it is). I wondered at what point inflation as it applies to poorer people regardless of whether they are on pensions or JSA or Incapacity Benefits, was ever at -1.4/5%.

I understand that air fares came down and mortgages came down. Poor people don't fly and they don't by and large have mortgages.

This filthy stinking thieving disreputable lying set of scoundrels would fall over backwards to save a few quid from the poor.

But then they paid out (as you pointed out) was it 59 million for the new Supreme Court of England with the splendid stain glass windows and specially designed and woven carpet and the gowns for everyday and gowns for ceremonial.......

Sorry for the language Subrosa, but WTF???????

subrosa said...

Thank you Crinkly.

Of course the balance of society is all wrong but that's the way Labour like it. Their vote is from those who think labour will provide them with a living by way of benefits.

Has apathy gobbled all the biscuits? It's certainly made a good attempt. All I see is crumbs.

subrosa said...

Of course VAT is going to increase to 20% crinkly. Surely anyone will any sense would see that. Mind you ...

subrosa said...

Yes indeed Tris. The poor always pay. How on earth do the rich become rich otherwise?

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