Rachael Reeves

[Icanthinkformyselfthanks]

The Chancellor has stated that those who work should work and unless you can support yourself independently I agree.
Much has been made of how the impending budget will impact the more wealthy, what measures do you think will be put in place which will effect those on benefits?

No point guessing really, maybe pension age to be raised to 70.

The Chancellor has stated that those who work should work and unless you can support yourself independently I agree

Pretty sure she doesn’t mean that though. Surely she means even if you can support yourself you should still be working to add to the tax revenues.

I have no idea, so will not speculate. I am interested to find out though, especially about the PIP.

I've been a long time benefit claimant with a disabled adult dc. My DS has LCWRA and enhanced rate PIP and I get carers allowance with additional top ups. I don't expect there to be any changes that will affect us. There have already been plans announced about changes for those who claim UC but aren't in LCWRA or aren't carers. There will be an expectation for them to earn more if they are already working but not full-time, and a time limit for claiming without being in work.

That would affect the poor more than the wealthy though. You can retire when you like, but only if you have enough pension to live on, and enough to take the hit of claiming it before it matures. Someone on a low salary is much more likely to rely on the state pension or to have a very small occupational one - enough to take them out of benefits but not enough to live on.

In her shoes I would scrap the NI credits for SAHPs. Someone not working is not economically active but still eligible for healthcare, education for their children etc, so there is no reason why they should get pension contributions made for them too, with those working and paying for childcare subsidising it. If someone stays at home when young, they should make up the years of contributions later to get a full state pension.

I think they’ll have a look at PIP eligibility, particularly with regard to ND and MH diagnoses.

The whole system of PIP needs looking at, from top to bottom imo.

@ShyMaryEllen

In her shoes I would scrap the NI credits for SAHPs.

I'd certainly reduce the time they're given, maybe down to 5 or 6 years per child, or even lower to primary school start date.

I'd also seriously look at the "low earnings" NIC credits for part timers earning under £12.5k (and above, I think £7k). It just encourages people to work the minimum they have to, and still get credits for state pension despite not paying any NIC!

People can theoretically get full state pension without ever paying a penny in NIC throughout their "working" lives if they have a few children a few years apart and then work the "right" amount of hours part time before and after childcare duties!

I'd also seriously look at "non working" spouses who are "paid" by their self employed spouses for non existent or minimal work, not only using up two peoples' of personal allowance and basic rate tax band, but also getting NIC credits for state pensions, by not genuinely working. It may not be strictly tax evasion nor benefit fraud, but it's VERY close to it and definitely an abuse of the tax/benefits system.

Yes, I think all of that makes more sense than making people work until 70 if they can't afford to live on an occupational pension. There should be a decent minimum wage and affordable childcare so it's worth going to work, but it's not fair that those who can't afford to stay at home with children should subsidise those who do, or that full-time workers should pay for others to work part-time.