The autumn budget should cut benefits before increasing tax

[Leett]

There is talk of Labour breaking their election pledge and increasing income tax by 2p. I doubt they'd do that because voters will revolt. However they need to do something with the state pension due to increase by 4.7% next year.
I really hope they cut benefits / pensions before the deciding to increase taxes.

Yes, never mentioned when the 15% Interest rates are brought up! 😀

I really can’t see what rational argument they could make against this.

But they worked hard & darned their own socks!

It’s absurd that we don’t have a single political party setting out anything resembling a functional and evidence-based, coherent economic plan. There is nobody for sensible, moderate, reasonable and rational people to vote for.

This, in spades.

It’s not one generation. I’m in my late 50sand have spent my life subsidising state pensions. When I retire in 10 years time I’d like the same thanks. It’s hardly a fortune. If you don’t safeguard it now life will be very grim even further down the line. As others said you will reap what you sow . Retirement comes to us all .

Oh well then, of course they deserve it, and bugger the grandchildren!
I'm only two years off my pension but I really do believe the system needs a complete overhaul.
Somebody needs to grasp the nettle and I think there's enough feeling that the young need prioritising that it could be done right now.

How are schizophrenics benefitting society?

They are hardly preferred
they saved - they paid.

they spent their whole lives paying into a system on the understanding that they would recieve in turn

otherwise thanks but can I have all my NI payments back now please ? Because they weee taken under false pretence.

Legal nightmare !

But by introducing means testing it will protect the state pension for you and all the others coming along.
Otherwise we could end up with nobody getting anything when the system crashes under it's own weight.

Taxes were considerably higher in 1977 when I started work than they are now @TheClaaaw . As in, 33% from £1 of earned income, plus 9% NI.

And, please don't overlook the massive intergenerational asset transfer that will take place as the babyboomers pop their clogs... all those houses, and hopefully some saved money too. To say nothing of the immediate transfer this branch of BoMaD is making to their GenZ kids, from their DC pension lump sum.

many of the grandchildren are doing just fine though - just as not all pensioners are rich not all the younger generations are poor - why don’t we take child benefit off any family who got an inheritance to buy they home ? Because they didn’t even earn it themselves just handed in a platE .

Protect the state pension by removing pension credit

Bear in mind as well that the PLSA living standards for a “moderate retirement” that I was referring to as a benchmark to use for means testing the state pension set the income level at £31,700 after tax and housing costs for a single pensioner, and £43,900 after tax and housing costs for a couple (uprated annually for inflation). So unequivocally, anybody with that level of income (or sufficient assets to generate that level of income) just to cover their Council tax, utilities, food, house maintenance and luxuries is categorically not in need of state welfare. It would be gradually tapered away to reach zero once these income levels from other income/ assets were achieved. And doing that would save £70-90bn per year. Over 25% of pensioner households are millionaires and £40bn of this is currently being paid to them!

I honestly don’t see how anybody can think that’s it’s not reasonable to means testing this welfare given the country’s current financial situation. In most cases means testing costs more than it saves but given the eye-watering cost of the state pension that will continue to rise exponentially if nothing is done, in this case it absolutely would be cost effective (British understatement of the century!).

@childofthe607080s well sure, all benefits should be going to those that need them, and not a blanket approach.
Unless we are getting into UBI, which personally I do think a great idea.

This ignores many indirect taxes, tax thresholds for higher rates of tax, tax exemptions and allowable deductions (benefits in kind, MIRAS, lower stamp, duties on alcohol, tobacco, VAT, fuel duty etc….)

The only way cutting benefits would be at all viable is if they substantially raise the minimum wage, and cut those “top up” benefits that make up for employers not paying a living wage.

More taxes on corporations would be a good start too.

And it’s interesting that you picked 1977 as your starting point. I wonder why?

What happened to your tax rates in the 1980s and 1990s?

Agree with you.

Taking away from pensioners who lack better forms of income is cruel. It feels like people want pensioners from less privileged backgrounds to suffer, while foolishly believing that all pensioners are wealthy.

I feel the need to point out that I've noticed there are far too many people on Mumsnet who seem proud of being ageist and wishing for people over 50 to die so they can grab whatever is left behind.

I don't know if these people realize it, but they will grow old one day (assuming they don't let their hate for older people consume them first). They will eventually see that younger generations hate them now and will continue to dislike them more with every passing year as they age. It's kind of crazy, but people in their 30s resent those in their 40s, those in their 40s dislike people in their 50s, and so on. It's just the cycle of life.

Now moving on to discuss the country's financial problems.

The nation is in a critical state, which highlights the failure of our esteemed schools and universities to produce individuals both willing and capable of tackling tough challenges. It's all just propaganda.

We can't let those who truly depend on benefits and can't work lose their support. At the same time, we need to encourage those who are able to work but choose not to, to contribute. It's also important to ensure everyone has a decent quality of life and an enjoyable lifestyle. The country needs more taxpayers who are content and thriving.

Still, no amount of money will solve the issues if we lack individuals who are capable and willing to use the funds for the greater good.

To achieve peace of mind, people should consider disconnecting from the internet or using it strictly for work, as it fails to benefit the greater good of anyone.

And despite this, the population will do just nothing but waiting for the IMF to come?

😆😆

Indeed. That’s about the size of it.

They lived in a paper bag and felt very fortunate! A soggy one, at that.

Depressingly, it seems like it.

I actually don’t think the IMF will get involved.

We’ll just end up devaluing our currency further and living standards will continue their doom loop but in a far, far accelerated manner. Particularly as we’re so dependent on imports priced in US dollars for many basic essentials such as fuel and food. Not a happy outlook if appropriate actions aren’t taken soon…

Landing a well paid job is about having good technical skills and good soft skills. If you have both you can succeed.

I've always taught my kids the value of hard work

Falling currency value, increasing lack of interest from investors in our gilts requiring higher interest coupons rates, and rampant imported inflation. Fun times ahead!

And we can’t even be glad that the inflation will inflate away some of the national debt because our wise politicians have issued over 25% of it in index-linked gilts! 🤦🏻‍♀️

In your situation thank goodness we live in a country whereby if something like this happens you aren’t on your own.

However there are a lot of able young people claiming when they shouldn’t be. For something like anxiety for example, there should be support in the form of therapy or medication for a limited time not encouragement of a life on benefits.