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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

To think the UK unfairly taxes families?

556 replies

OwnGravityField · 09/11/2025 12:52

I have just found out that the UK is an outlier, in that it completely stops collecting a form of social tax (NI in the UK) once someone gets to pension age.

In every other country, pensioners’ contributtion as a proportion of income is much more similar to working households.

Example of disparity in the UK:

A working person earning 25k pays:

  • Income tax: £2,486
  • NI: £1,002
  • total = £3488

A pensioner with an income of 25k pays only:

  • Income tax: £2,486
  • no NI
  • total = £2486

So, a UK worker on 25k pays 40% MORE total tax than the pensioner (the difference between 2486 and 3488).

Let’s compare with a beloved utopia of fairness, such as Sweden: worker on similar salary pays 9% more tax than a pensioner.

Yes, other countries have slightly larger differences, but none except France come anywhere close to the UK difference in tax treatment between workers and pensioners.

In the interests of balanced sharing of info: France is tax and spend basket case. France taxes workers roughly twice as hard as pensioners. It’s obscene and the country is practically bankrupt.

Most other European countries narrow the gap by keeping small health or social contributions on pension income.

You might be thinking most UK pensioners don’t have 25k coming in? Nope. 3 million have individual incomes of 25k or more.

Anyway, I think it’s shocking that people at the most expensive time of their lives (kids, mortgage, food) are taxed so much more heavily. AIBU?

OP posts:
bottledboot · 09/11/2025 16:46

Voted Labour last election.

@MrsSkylerWhite the above doesn't change any of my points You are not everyone!

MrsSkylerWhite · 09/11/2025 16:46

lazyarse123 · 09/11/2025 16:44

You're generalising as are all the people who lump pensioners all together.
You have no idea of the income we had or what it had to pay for.
But really it shouldn't be a competition over who had it harder, the real question is what can be done about it?

Indeed.

bottledboot · 09/11/2025 16:45

Doesn’t everyone get free hours now, regardless of finances?

Everyone gets 15 hours free for 3 & 4 yr olds for 38 weeks. Truly free childcare isn't really a thing despite what people think.

lazyarse123 · 09/11/2025 16:44

OwnGravityField · 09/11/2025 16:18

You did have it easier, as did I when my now adult children were younger. I had no UC or childcare paid for (as is the case for most parents today) and had hardly any maternity either. But still, we had disposable because mortgage, transport costs, taxes, council tax, energy bills and food costs were not as high compared to wages as they are today. Our children are earning exactly the same wages as I did all those years ago and yet their outgoings, including taxes (because they keep on being hoiked up) are much higher. Yes, they get a coffee, but what do you expect of a generation that has given up hope of affording a house or to have children? I despair at the tin-eared approach of the older generation.

The fact is, even without inflation eroding away wages, younger workers pay 40% MORE tax than pensioners. The disparity has never been so stark between generations or when compared to other civilised countries.

You're generalising as are all the people who lump pensioners all together.
You have no idea of the income we had or what it had to pay for.
But really it shouldn't be a competition over who had it harder, the real question is what can be done about it?

Katypp · 09/11/2025 16:44

It is a complete mystery to me why young families seem to expect to have similar financial circumstances to those who bought their houses years ago, have maybe had a couple of inheritances along the way and a couple of lump sum pensions, all of which may well happen to 30 somethings when THEY reach retirement age.
Moan, moan, whinge about how hard is is for them at the moment - as it has always been for young families. Why do you think you are unique?

MrsSkylerWhite · 09/11/2025 16:44

bottledboot · 09/11/2025 16:43

My husband is a pensioner, we’re living off his pension.

@MrsSkylerWhite but you aren't in the cohort I was referring to as you are not receiving a state pension.

Fair enough. He is.

MrsSkylerWhite · 09/11/2025 16:43

bottledboot · 09/11/2025 16:42

Appreciate that but that’s not the fault of today’s pensioners is it?

Yes & no, we have to take some responsibility for how we vote though. It's not unsurprising that as a group pensioners will vote for things that benefit themselves now as opposed to things that are long term which they may not live to feel the benefits of. But there is a problem when the electorate is disproportionately made up of older people as what then happens to young people & their futures. We already have more over 65s then under 15 yr olds, It's unprecedented.

Voted Labour last election.

bottledboot · 09/11/2025 16:43

My husband is a pensioner, we’re living off his pension.

@MrsSkylerWhite but you aren't in the cohort I was referring to as you are not receiving a state pension.

bottledboot · 09/11/2025 16:42

Appreciate that but that’s not the fault of today’s pensioners is it?

Yes & no, we have to take some responsibility for how we vote though. It's not unsurprising that as a group pensioners will vote for things that benefit themselves now as opposed to things that are long term which they may not live to feel the benefits of. But there is a problem when the electorate is disproportionately made up of older people as what then happens to young people & their futures. We already have more over 65s then under 15 yr olds, It's unprecedented.

MrsSkylerWhite · 09/11/2025 16:42

user1471538275 · 09/11/2025 16:40

Childcare is equivalent to social care. Both are subsidised by the state dependent on income.

Low income individuals get help with this, those that can afford it do not.

I think they need to roll income tax and NI together and everyone who is over tax threshold pays.

We are at a stage where every individual in the country needs to do what they can - although I would prefer to start with a wealth tax/land tax/exit tax

Doesn’t everyone get free hours now, regardless of finances? Happy to be corrected, kids are adults.

MrsSkylerWhite · 09/11/2025 16:41

bottledboot · 09/11/2025 16:38

@MrsSkylerWhite I'm confused why you are telling me about everything you have done, my parents have done similar. It's irrelevant when looking at the bigger picture. If everyone was like you or my parents we would not have such economic constraints. Plus at your age you aren't even a pensioner so I'm not sure what you are framing the OP around you 😆

The vast majority of people are net recipients & the majority of net recipients are pensioners. Thats reality.

My husband is a pensioner, we’re living off his pension.

user1471538275 · 09/11/2025 16:40

Childcare is equivalent to social care. Both are subsidised by the state dependent on income.

Low income individuals get help with this, those that can afford it do not.

I think they need to roll income tax and NI together and everyone who is over tax threshold pays.

We are at a stage where every individual in the country needs to do what they can - although I would prefer to start with a wealth tax/land tax/exit tax

MrsSkylerWhite · 09/11/2025 16:39

bottledboot · 09/11/2025 16:34

@MrsSkylerWhite I said more mothers work now which is a fact.

I’m increasingly uncomfortable with how generations seem to be being pitted against each other now. It shouldn’t be a race to the bottom.

But many people don't seem to have a problem with the fact we have taken money away from the young to give to the older generation. Some of that is inevitable with an ageing population but the fact is our state pensions & NHS model are funded like a ponzi, it isn't sustainable. It doesn't matter that you have gifted to your dc, it's bigger than that. Much bigger.

What’s your solution, a cull?

bottledboot · 09/11/2025 16:38

@MrsSkylerWhite I'm confused why you are telling me about everything you have done, my parents have done similar. It's irrelevant when looking at the bigger picture. If everyone was like you or my parents we would not have such economic constraints. Plus at your age you aren't even a pensioner so I'm not sure what you are framing the OP around you 😆

The vast majority of people are net recipients & the majority of net recipients are pensioners. Thats reality.

MrsSkylerWhite · 09/11/2025 16:38

bottledboot · 09/11/2025 16:34

@MrsSkylerWhite I said more mothers work now which is a fact.

I’m increasingly uncomfortable with how generations seem to be being pitted against each other now. It shouldn’t be a race to the bottom.

But many people don't seem to have a problem with the fact we have taken money away from the young to give to the older generation. Some of that is inevitable with an ageing population but the fact is our state pensions & NHS model are funded like a ponzi, it isn't sustainable. It doesn't matter that you have gifted to your dc, it's bigger than that. Much bigger.

Appreciate that but that’s not the fault of today’s pensioners is it? They were living their lives with what they were presented with at the time. Doesn’t everyone?
It’s a succession of incompetent governments, systems and rules to blame for what people are having to cope with now.

bottledboot · 09/11/2025 16:35

And UC reduced from a 2 child cap to 1 child only.

@Gingernessy disagree with that, I don't think we should push more dc into poverty, they are the future.

MrsSkylerWhite · 09/11/2025 16:35

I know the truth is uncomfortable but it's still the truth. We have an ageing population and as a whole they have taken more out of the system than they have put in. This doesn't mean every pensioner is rich or there aren't young feckless people. But it does explain part of our issue with productivity & growth.

I don’t feel any guilt, personally. We’ve paid top rate tax for decades, kids in private schools, first child born with private medical care, claimed no state assistance and have always maintained my NI contributions when I wasn’t in paid work. We’ve had some excellent NHS care in recent years but we are still certainly net contributors by quite some margin. Never had a problem with that at all. Certainly shan’t feel any guilt about receiving my state pension in a few years. It will probably trickle down through the family anyway.

bottledboot · 09/11/2025 16:34

@MrsSkylerWhite I said more mothers work now which is a fact.

I’m increasingly uncomfortable with how generations seem to be being pitted against each other now. It shouldn’t be a race to the bottom.

But many people don't seem to have a problem with the fact we have taken money away from the young to give to the older generation. Some of that is inevitable with an ageing population but the fact is our state pensions & NHS model are funded like a ponzi, it isn't sustainable. It doesn't matter that you have gifted to your dc, it's bigger than that. Much bigger.

Lilly11a · 09/11/2025 16:33

The benefit system is heavily favourable towards families and pensioners .

It's working aged adults without dependants they came claim something for that face hardship

Gingernessy · 09/11/2025 16:31

bottledboot · 09/11/2025 16:28

The triple lock should absolutely be paused.

And UC reduced from a 2 child cap to 1 child only.

MrsSkylerWhite · 09/11/2025 16:30

bottledboot · 09/11/2025 16:25

@MrsSkylerWhite no one on the thread has said no mothers worked in the past have they?

No, they haven’t but I think many don’t realise that it was very common.
With young adult children, fully acknowledge the difficulties that young people face. Rather than waiting until we die, we’ve gifted to our kids so they each have modest homes, youngest completing next week. No idea what the hell they could have done without help.
That’s not to say though that previous generations didn’t face their own, somewhat different, challenges.
I’m increasingly uncomfortable with how generations seem to be being pitted against each other now. It shouldn’t be a race to the bottom.

bottledboot · 09/11/2025 16:30

@Theresabatinmykitchen post some statistics then that show the vast majority of mothers with dependent dc worked full time in the past. You are claiming it was the norm & anyone who knows otherwise is clueless.

bottledboot · 09/11/2025 16:28

The triple lock should absolutely be paused.

Theresabatinmykitchen · 09/11/2025 16:27

You've watched too much TV. Working class women have always worked. The SAHM mum is a myth unless you were middle class.

Exactly, my generation (generation x) weren’t called latch key kids for no reason, Both parents worked, it was the norm unless you were the true version of middle class, most parents were not Margot and Jerry Leadbetter which seems to be what clueless posters on here spout as fact 🙄.

bottledboot · 09/11/2025 16:25

@MrsSkylerWhite no one on the thread has said no mothers worked in the past have they?