Wealthy Pensioners Urged To Hand Benefits Back

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Wealthy Pensioners Urged To Hand Benefits Back

This is a duplicate of the Blog Entry made on 28th April 2013 13:42.

*Iain Duncan Smith says it is an "anomaly" that all pensioners receive universal benefits, no matter how rich they are.* Wealthy pensioners are...

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[PriorityOne]

Re: Wealthy Pensioners Urged To Hand Benefits Back

Why doesn't he just correct the anomaly then......

Oh yeah.... 'coz he'd lose most of the grey vote.

[julian]

Re: Wealthy Pensioners Urged To Hand Benefits Back

Define wealthy. Can afford rent and 3 meals a day (egg on toast, cheese on toast, beans on toast)?

It would be quite simple just not to claim State Pension, and other benefits. Many don't.

Those people that don't claim, don't get it automatically. Those that claim, believe they need it. The only benefit that appears to be automatic, is the free prescriptions, as the pharmacist looks at the age, and does not charge.

[PriorityOne]

Re: Wealthy Pensioners Urged To Hand Benefits Back

Define wealthy. Can afford rent and 3 meals a day (egg on toast, cheese on toast, beans on toast)?

It would be quite simple just not to claim State Pension, and other benefits. Many don't.

Those people that don't claim, don't get it automatically. Those that claim, believe they need it. The only benefit that appears to be automatic, is the free prescriptions, as the pharmacist looks at the age, and does not charge.

The Winter Fuel Allowance is automatic in the majority of cases Julian....

My late step-father used to get it along with a large private pension which cancelled out his state pension, I believe. He also received Attendance Allowance. Whwn he passed away, he had £75K sitting in his current account..... not to mention the savings, bonds and so on.

[pompeyfaith]

Re: Wealthy Pensioners Urged To Hand Benefits Back

Sorry this is now a step too far and is evident that this coalition has not got a clue.

Is this what Cameron meant by Big Society because if it is he can stick it where the sun don't shine.

[PlanB]

Re: Wealthy Pensioners Urged To Hand Benefits Back

The Winter Fuel Allowance is automatic in the majority of cases Julian....

As I understand it the Winter Fuel Payment is only paid if you are in receipt of a state pension or claiming another state benefit. You don't get a state pension unless you apply for it. Lots of wealthy people don't bother to claim their state pension because it's added to their income and is subject to tax.

https://www.gov.uk/winter-fuel-payment/overview

[MattyA]

Re: Wealthy Pensioners Urged To Hand Benefits Back

The Winter Fuel Allowance is automatic in the majority of cases Julian....

My late step-father used to get it along with a large private pension which cancelled out his state pension, I believe. He also received Attendance Allowance. Whwn he passed away, he had £75K sitting in his current account..... not to mention the savings, bonds and so on.

Your father in law , in my opinion was more than due whatever he recieved.
He earned it.
He would have most likely have paid all his taxes , no doubt at the higher rate and therefore would have paid more than most back into the system.
He should have got more back than the the life long benifit claimant, playing the system but never paying into it.


Matty

[julian]

Re: Wealthy Pensioners Urged To Hand Benefits Back

The bus pass is another benefit that needs to be claimed. However, its benefit is different depending where you live and if you have use of a car like Mr Clarke.

You may not need them if you live in a small town that still has shops that sell food and other useful products, not just charity and 99p shops (some things they sell are useful sometimes). If you live in a small country village a trip to town may be vital. If you live in London, you may need to travel miles to a supermarket (near a bus stop) as there are no corner shops anymore. In the later 2 cases you may need to walk half a mile or more to get to a bus stop to catch the bus.

The bus pass is a individual European benefit based on proof of age, fuel allowance is a UK benefit if you are claiming a State pension, split if more than one person in a household is claiming. So if you have a small flat then £200 may cover the heating bill for a winter month. If you are living in Malaga it will cover the heating for the whole year, where you will be using the Spanish bus pass and other facilities and subsidies for the elderly given by the Spanish government.

[SXGuy]

Re: Wealthy Pensioners Urged To Hand Benefits Back

Buss pass only costs money if its used.

Id rather see winter fuel allowance not paid to non doms first before its handed back by us in this country.

Why dont they just tax us for reaching 65 and be done with it.

[PriorityOne]

Re: Wealthy Pensioners Urged To Hand Benefits Back

As I understand it the Winter Fuel Payment is only paid if you are in receipt of a state pension or claiming another state benefit. You don't get a state pension unless you apply for it. Lots of wealthy people don't bother to claim their state pension because it's added to their income and is subject to tax.

https://www.gov.uk/winter-fuel-payment/overview

His pension from work cancelled out the state pension but he was in receipt of Attendance Allowance, so maybe that's how he came to receive it.

Your father in law , in my opinion was more than due whatever he recieved.
He earned it.
He would have most likely have paid all his taxes , no doubt at the higher rate and therefore would have paid more than most back into the system.
He should have got more back than the the life long benifit claimant, playing the system but never paying into it.

Matty

Yes... he worked all his life; in the days when "jobs for life" existed but certainly didn't earn enough to pay the highest rate of tax. As he was employed by a major bank for all those years though, his pension was a good one.

My point is simply that he didn't need the winter fuel allowance.... not all elderly people do. The same as not everyone with children needed Child Benefit before the rules changed.

[julian]

Re: Wealthy Pensioners Urged To Hand Benefits Back

Unfortunately if it becomes means tested, the take-up rate will be greater among the money-grabbing than the needy. In Belgium and Luxembourg with 6 children you can "earn" £2000 a month child benefit and get all sorts of schooling and clothing discounts, but most couples have only 1 child.

In the UK, at present, it is very easy for those not employed on PAYE (self-employed including accountants and solicitors) to ensure they are paid very little on paper and thereby able to attract all benefits by paying themselves minimal wages but lots of expenses. Not all of their money is earned through hard work.

I am not sure how a pension cancels out a state pension unless a contracted out pension limited it to the basic state pension (no SERPS and other additional pensions). The current £6000 basic pension could take somebody over the 40% tax threshold. Currently that would mean it would be worth about £3600 per year.