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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:
Marshmallowsoftness · 13/11/2025 09:10

The difference is the ease of broken relationships. Previously, if you left your husband you paid for yourself whilst now they expect the tax payer to fund their choices. This fuels that option and people choose relationships with little thought of the long term.

Why, if they leave should they get government help? They should get the same help a long term single person gets. We have a two tier society of single people.

I believe the two child benefit cap should stay. What should happen is increased tax breaks for those in long term employment. Not benefits.

rainingsnoring · 13/11/2025 08:53

Bushmillsbabe · 13/11/2025 07:30

I agree with you. Poll tax, which was based I think on numbers in a household, was much fairer. You could have a multi generational household with several adults paying not much more than a single adult household. A house with say 4 adults and 6 children will use a lot more council services than a house with 1 adult and 1 child. More cars on the roads which councils maintain, create more rubbish for council to collect, need more school places for council to fund. But there was a huge revolt against that!

The poll tax was the epitome of a regressive tax so it was very 'fair' to the wealthy widow rattling around in a mansion. Meanwhile, the family who were forced to live frugally, three generations together, say 6 people paid 6 times as much. It was literally a punishment for the poor who were trying to live frugally, within their means.
With regard to the single person, it depends. Should the wealthy widow in the huge mansion have a larger discount than the poor widow in a tiny flat? That's clearly not fair.
I agree with @GertrudePerkinsPaperyThing's point about CB for single households though. It's particularly unfair to those parents who have been widowed at a young age and have no possibility of CM.

BIossomtoes · 13/11/2025 08:37

Poll tax was grossly unfair. Two pensioners paying the same as couples with school age children and using a fraction of the services. Anyway it was enough of a disaster for it never to be on the table again.

CandidLurker · 13/11/2025 07:47

@Bushmillsbabe

We were in a different world when the poll tax was introduced. Prior to its introduction rates were included in rent. Once the poll tax was introduced renters had to pay this significant additional charge on top of their rent. Of course landlords didn’t reduce the rent to reflect the fact that they were no longer paying rates.

So homeowners and landlords either the same or better off (especially landlords)

Renters, all without exception, worse off to a significant degree. People just didn’t have the money to pay it.

This was before the “buy to let” market existed. If you rented it wasn’t through choice. You were already poor as if people had the money in those days they always bought. This is what Mrs Thatcher tapped into with RTB.

i do think it potentially could be revisited now as we are not moving from a situation where “rates” were inclued in rent. Everyone now pays their own council tax whether owner or renter.

Bushmillsbabe · 13/11/2025 07:30

GertrudePerkinsPaperyThing · 10/11/2025 09:48

You know who’s unfairly taxed? Single adult households.

Council tax by household, with the measly 25% reduction for SAHs, but tax personal allowance is by person - so households with a couple both earning get two, whilst a single parent (or other single adult) gets one. And similarly with the threshold for higher rate tax.

Child benefit? Oh we’ll do that one on per person too, so couples can each earn just under the threshold and receive it - but a single person, nope you can only earn up to the threshold once and receive it.

Seems unfair that household next door has almost twice your income with 2 x personal allowance and tax thresholds in the mix to give them more take home as a family, and they receive CB? Tough.

(Edit - I know about the. CB taper and that it’s not a cliff edge benefit but it’s still unfair that it isn’t household income)

Edited

I agree with you. Poll tax, which was based I think on numbers in a household, was much fairer. You could have a multi generational household with several adults paying not much more than a single adult household. A house with say 4 adults and 6 children will use a lot more council services than a house with 1 adult and 1 child. More cars on the roads which councils maintain, create more rubbish for council to collect, need more school places for council to fund. But there was a huge revolt against that!

pottylolly · 12/11/2025 17:44

They pay tax on their pensions. Are you genuinely too thick to google this?

Tryingtokeepgoing · 12/11/2025 15:46

OwnGravityField · 09/11/2025 13:22

That was my point. The whole concept of ‘I’m finished paying tax’ followed by a dramatic dusting off of one’s hands doesn’t exist on the continent.

That's patently not correct though, is it? It's not how it works here, or on the continent. Tax is paid post retirement in the UK and on the continent, it is NI that is not, (currently) paid post retirement in the UK. But the equivalent social security contributions are also not paid by the retired in France, Italy or Germany and, I suspect, everywhere else on the continent.

Not only that, if anything its not a families being treated unfairly, but single people, of whom the retired make up a significant proportion, due to being widows/widowers. Many of the costs of living are fixed whether there are one, two or more people living at an address. Yet single people don't get anything to compensate for that. Even council tax, which does attract some discount, is proportionally much more expensive if you a a single person household. Most utilities are also not half the cost if there's one person not two, and neither are insurance, rent or many other things.

The Government is failing you all by taxing away growth, so people are worse off. The rise in single person households is also another reason why people feel their standards of living are not the same as previous generations. People are single for longer, and often widowed for much longer, and therefore living on a single income not two for more of their lives.

rainingsnoring · 12/11/2025 14:20

HelenaWaiting · 11/11/2025 21:16

I agree. Go to work. Pay for your own childcare. I had to.

So did I. Big deal.
This is not a 'tit for tat situation. Some of the comments on here are really juvenile and unpleasant.

Pensioners should pay the same rate of tax as everyone else because there is absolutely no reason for them to give special treatment to the wealthiest group within the UK population.
Financial assistance with childcare, which is provided to a much greater extent in many other countries compared to the UK, is to encourage both parents to work, pay tax and contribute to society by providing services. It is also to encourage younger people to have children, which is of benefit to the whole of society. Both these groups are of major benefit to the pensioners.

Timeforabitofpeace · 12/11/2025 13:48

moderndilemma · 09/11/2025 12:56

Here we go yet ANOTHER ageist thread.

This.

I’m so sick of all this budget manoeuvring. Publish the fucking thing and be damned!

Badbadbunny · 12/11/2025 10:21

BritHoward · 11/11/2025 17:09

Think we need as many people working as we can - we need to pull in those taxes and one of the reasons we are struggling with tax revenues is that increasing numbers of people are not working due to an aging population and increasing levels of ill health. Keep the Mums at home and it only gets much worse - especially if they are out of the work force for 5 years and become deskilled.

Nail on the head. Benefits/tax incentives should be aimed at potentially working people so that they can work or work more to grow the economy.

Other countries give tax incentives for "work" such as for parents, commuting costs, work clothing, etc. The UK is a bit of a loner in not encouraging people to work!

BIossomtoes · 12/11/2025 08:13

BritHoward · 12/11/2025 08:04

I would expect them to have similar aims.

Why? I wouldn’t expect every member of any age group to have similar aims. I’m never going to want the same things as the majority of my age group who voted for Brexit and want a Tory or Reform government.

BritHoward · 12/11/2025 08:04

BIossomtoes · 12/11/2025 07:57

Why would you expect everyone over a certain age to think the same thing?

I would expect them to have similar aims.

BIossomtoes · 12/11/2025 07:57

BritHoward · 11/11/2025 22:17

I’m hoping the Gov is having a better quality debate than this thread which utterly lacks forward thinking. Pensioners even up against other pensioners. People should understand that the Gov didn’t save up all their contributions over the years, they are relying on this generation to pay the bills - we need more workers to subsidise the job workers and that isn’t going to happen, it might be time to jump shipof you have the cash.

Why would you expect everyone over a certain age to think the same thing?

BritHoward · 11/11/2025 22:17

I’m hoping the Gov is having a better quality debate than this thread which utterly lacks forward thinking. Pensioners even up against other pensioners. People should understand that the Gov didn’t save up all their contributions over the years, they are relying on this generation to pay the bills - we need more workers to subsidise the job workers and that isn’t going to happen, it might be time to jump shipof you have the cash.

WestwardHo1 · 11/11/2025 22:13

Scarlettpixie · 11/11/2025 19:02

They could only afford for one parent to stay at home if they went without. We were poor and my mum worked part time from me being about 3. We mostly didn't have holidays and when we did they were in the UK (often at the end of season when half the place was shut). There were 3 (then 4) channels on the telly and no-one had a mobile phone, internet, ate out, went for coffee, had netflix etc. We didn't have a VCR until I started work and then we rented one and I paid half. Loads of people rented a telly. Most families had only one car. No one got their nails done or went for beauty treatments. They didn't have loads of clothes or shop for fun. All my school friends mums worked when I was growing up (except the ones with 3 or more kids), as did my son's friends when he was at school. The mums I know are just as likely to work part time now especially through the primary school years as they ever were. I was the exception working full time from DC being about 9. I am 53.

Most families on 25K will be getting UC and/or childcare vouchers. If both parents work and are on 25K they are arguably not a low income household.

You sound like one one those FB posts. SHARE IF U AGREE

Kitte321 · 11/11/2025 22:03

HelenaWaiting · 11/11/2025 21:16

I agree. Go to work. Pay for your own childcare. I had to.

Why? What logical reason is there for not funding childcare? Other than “because you had to” 🙄

BritHoward · 11/11/2025 21:58

HelenaWaiting · 11/11/2025 21:16

I agree. Go to work. Pay for your own childcare. I had to.

Well my mum went to work full time and she paid for child care / maybe she was a wrong’en but she paid out our housekeeper a pittance / pocket money you might say, nowadays she’d had to pay minimum wage, so much easier back then to under pay someone. She was ri to er happy or desperate as she worked for our family for nearly 30 years.

Pigeonpoodle · 11/11/2025 21:31

BritHoward · 11/11/2025 17:09

Think we need as many people working as we can - we need to pull in those taxes and one of the reasons we are struggling with tax revenues is that increasing numbers of people are not working due to an aging population and increasing levels of ill health. Keep the Mums at home and it only gets much worse - especially if they are out of the work force for 5 years and become deskilled.

We could increase the number of skilled and experienced working people contributing significantly to the economy if professionals weren’t able to afford to retire quite as early.

Removing NI and increasing Income Tax to compensate would help with this (families would benefit as their reduction in NI would be more than their increase in Income Tax), as well as keeping the tax allowance from pension contributions at the standard rate irrespective of earnings, meaning they take longer to grow their pension pot. The typical standard rate payer wouldn’t be affected!

The highly productive 50 and 60 experienced professionals would work for a few years longer on average with a massive boost to the economy as a result!

Btw, I’d be exactly one of those who’s be adversely affected by such a move, so it’s definitely not coming from a place of envy!

Pigeonpoodle · 11/11/2025 21:16

rainingsnoring · 11/11/2025 19:30

I think that's hard to argue with but many are trying, although not one has presented a sensible argument. It's mostly been accusations of ageism, statements that pensioners had it very hard when they were small, statements about how low the UK state pension is, etc.

Agreed. Those living on the State Pension alone wouldn’t be affected by the change as they don’t (or barely) pay tax anyway!

I’m sure many pensioners did have it hard when they were growing up and many do today, but on average the disparity between the wealth of the young and old has never been greater… The older generation is (on average) VASTLY more wealthy!

Skewing the tax regime to further benefit them disproportionately is a shameful unfairness that has massive negative impacts on society… For one, we are facing demographic population collapse because couples can’t afford a place of their own until they’re much older.

HelenaWaiting · 11/11/2025 21:16

BritHoward · 11/11/2025 17:09

Think we need as many people working as we can - we need to pull in those taxes and one of the reasons we are struggling with tax revenues is that increasing numbers of people are not working due to an aging population and increasing levels of ill health. Keep the Mums at home and it only gets much worse - especially if they are out of the work force for 5 years and become deskilled.

I agree. Go to work. Pay for your own childcare. I had to.

rainingsnoring · 11/11/2025 20:01

No5ChalksRoad · 11/11/2025 19:59

Well said.

Other differences between now and those "good old days when one income could support a household":

Very few people had flown on an airplane or holidayed abroad
Very few people attended university
Dining out/takeaway was rare - like maybe 3-4 times a year
Food was much more limited in quality and quantity; snacking and ready availability of soft drinks, crisps etc. was not the norm, let alone purchasing bottled water. We were always pleasantly surprised on the very seldom occasions mum would split a couple bottles of coke and small bag of crisps among us while watching television.
Few gadgets. I remember in the 70s dad bringing home an electronic calculator and literally the neighbours came over to marvel at it. Now you can buy them in the poundshop at 1/10th the size of that one
Pets did not receive human-level medical care
Kids and teens did not have myriad paid "activities," sport or lessons
Clothing was far more scant, I recall having 2-3 pairs of shoes and we weren't poor
My mother never allowed us to get anything when the ice cream van went through the neighbourhood; when I asked why as an adult she said "we simply could not afford it. We literally didn't have the spare change." And my dad had a decent job at Ford.
Eyeglasses were very costly and if they broke, you wore them fixed with cello tape until the next year. And everyone was very upset; they were treated like treasured items.

Furniture was sparse and secondhand.

Those and other frugalities were the reality of having a one-earner SAHM household in the 60s/70s. People's lives barely resembled the way even lower-income people expect to live nowadays.

We used the library, wore second-hand clothing, mum pulled us to the shops in a wagon because she didn't have a car. Kids amused themselves and weren't entrtained every moment, and were expected to contribute with chores. It is quite possible to "survive on one income" in just that way today, but people aren't willing to deprive themselves to that extent.

You can have this instead so that you can reminisce about how tough things were when people couldn't afford gadgets.

No5ChalksRoad · 11/11/2025 19:59

Katypp · 11/11/2025 19:39

@rainingsnoring, it's easy to mock when you can't really respond sensibly to the poster, who actually was talking complete sense.
PPs are keen to point out that there were more SAHMs in the past (were there?) but the fact is that a lot of things that are considered basic and essential today were just not back then.
Yes, there were no computers/nail bars/smartphones etc, but life really was not as extravagant as it is now. I well remember posters during the winter when energy costs shot up declaring they 'refuse' to let their children 'freeze' by not heating the house when we had no central heating at all growing up in the 1970s. I didn't know leaving the heating on overnight was even a thing until that winter.
I am not saying don't heat your house, clearly, but that is a good example of how expectations and norms have shifted in just one generation.
Today women say they can't afford to stay at home but what they mean is they can't afford a lifestyle that is far in excess of the lifestyle I was familiar with. Very few families had two cars, eating out was pretty rare, mostly just for birthdays and special occasions. We had fewer clothes and they were passed down from family members or friends. Holidays for us were in a caravan in the UK. Soft play - if it existed - would have been very much a birthday treat and new toys were really just for Christmas and birthdays.
Yes house prices are a lot higher relative to income today, but although I would never say young people should ditch a coffee to enable them to buy an house, the fact is all these 'basic' expenses add up, so expenditure is a lot higher now for a 'normal' family than it used to be.
I'm sure you will trot out that video again because I am saying things you don't want to hear, but hey ho.

Well said.

Other differences between now and those "good old days when one income could support a household":

Very few people had flown on an airplane or holidayed abroad
Very few people attended university
Dining out/takeaway was rare - like maybe 3-4 times a year
Food was much more limited in quality and quantity; snacking and ready availability of soft drinks, crisps etc. was not the norm, let alone purchasing bottled water. We were always pleasantly surprised on the very seldom occasions mum would split a couple bottles of coke and small bag of crisps among us while watching television.
Few gadgets. I remember in the 70s dad bringing home an electronic calculator and literally the neighbours came over to marvel at it. Now you can buy them in the poundshop at 1/10th the size of that one
Pets did not receive human-level medical care
Kids and teens did not have myriad paid "activities," sport or lessons
Clothing was far more scant, I recall having 2-3 pairs of shoes and we weren't poor
My mother never allowed us to get anything when the ice cream van went through the neighbourhood; when I asked why as an adult she said "we simply could not afford it. We literally didn't have the spare change." And my dad had a decent job at Ford.
Eyeglasses were very costly and if they broke, you wore them fixed with cello tape until the next year. And everyone was very upset; they were treated like treasured items.

Furniture was sparse and secondhand.

Those and other frugalities were the reality of having a one-earner SAHM household in the 60s/70s. People's lives barely resembled the way even lower-income people expect to live nowadays.

We used the library, wore second-hand clothing, mum pulled us to the shops in a wagon because she didn't have a car. Kids amused themselves and weren't entrtained every moment, and were expected to contribute with chores. It is quite possible to "survive on one income" in just that way today, but people aren't willing to deprive themselves to that extent.

rainingsnoring · 11/11/2025 19:59

bottledboot · 11/11/2025 19:56

A lot of people are confused with how much disposable income today's younger generations have.

Bills & housing costs make a huge difference

"In 1993, the average householder paying for either rent or a mortgage, alongside electricity, gas, telephone, TV licence and car insurance would spend £382.39."

"Adjusted for inflation, this is £570 less than what consumers are paying for basic bills now."

There were 3 (then 4) channels on the telly and no-one had a mobile phone, internet, ate out, went for coffee, had netflix etc

Why would you have things that didn't exist though?
People did go out, did buy beauty products, went to pubs etc. None of this things were new in the last decade.

Exactly. Some people seem to think purely in terms of income or respond with jealousy to the fact that UC exists without giving any thought to how much basic essentials such as housing, etc cost and how costs rise considerably if two working parents are necessary.

rainingsnoring · 11/11/2025 19:57

Katypp · 11/11/2025 19:39

@rainingsnoring, it's easy to mock when you can't really respond sensibly to the poster, who actually was talking complete sense.
PPs are keen to point out that there were more SAHMs in the past (were there?) but the fact is that a lot of things that are considered basic and essential today were just not back then.
Yes, there were no computers/nail bars/smartphones etc, but life really was not as extravagant as it is now. I well remember posters during the winter when energy costs shot up declaring they 'refuse' to let their children 'freeze' by not heating the house when we had no central heating at all growing up in the 1970s. I didn't know leaving the heating on overnight was even a thing until that winter.
I am not saying don't heat your house, clearly, but that is a good example of how expectations and norms have shifted in just one generation.
Today women say they can't afford to stay at home but what they mean is they can't afford a lifestyle that is far in excess of the lifestyle I was familiar with. Very few families had two cars, eating out was pretty rare, mostly just for birthdays and special occasions. We had fewer clothes and they were passed down from family members or friends. Holidays for us were in a caravan in the UK. Soft play - if it existed - would have been very much a birthday treat and new toys were really just for Christmas and birthdays.
Yes house prices are a lot higher relative to income today, but although I would never say young people should ditch a coffee to enable them to buy an house, the fact is all these 'basic' expenses add up, so expenditure is a lot higher now for a 'normal' family than it used to be.
I'm sure you will trot out that video again because I am saying things you don't want to hear, but hey ho.

And there were certainly more SAHMs in the past. The stats bear this out and they don't even take into account hours worked, which are much higher now.

bottledboot · 11/11/2025 19:56

A lot of people are confused with how much disposable income today's younger generations have.

Bills & housing costs make a huge difference

"In 1993, the average householder paying for either rent or a mortgage, alongside electricity, gas, telephone, TV licence and car insurance would spend £382.39."

"Adjusted for inflation, this is £570 less than what consumers are paying for basic bills now."

There were 3 (then 4) channels on the telly and no-one had a mobile phone, internet, ate out, went for coffee, had netflix etc

Why would you have things that didn't exist though?
People did go out, did buy beauty products, went to pubs etc. None of this things were new in the last decade.