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NI contributions law
10 Answers
Does anyone else remember Vince Cable announcing soon after the election they would be abandoning the requirement for NI contributions of 30 years for a state pension? I certainly do, but does anyone know what happened to the plans causing them to be ditched?
Answers
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The sums simply don't add up to support VC's proposals.
A quote from James Landale (BBC News deputy political editor):
" . . . this policy is work in progress, it's not going to happen for a long while and it will only affect future pensioners".
Source:
http://www.
Chris
A quote from James Landale (BBC News deputy political editor):
" . . . this policy is work in progress, it's not going to happen for a long while and it will only affect future pensioners".
Source:
http://www.
Chris
02:22 Fri 23rd Nov 2012
The sums simply don't add up to support VC's proposals.
A quote from James Landale (BBC News deputy political editor):
" . . . this policy is work in progress, it's not going to happen for a long while and it will only affect future pensioners".
Source:
http
Chris
A quote from James Landale (BBC News deputy political editor):
" . . . this policy is work in progress, it's not going to happen for a long while and it will only affect future pensioners".
Source:
http
Chris
My memory's too good for the spin doctors, I keep a note of everything. He sounded so definite in his speech, so all that remains to find out is was it, well, spherical, or is it genuinely a work in progress as I have plenty of time for it to pan out as in no hurry for my time. I think only an enquiry to government will now answer that one, but thanks for digging it up at all as that was the first and last ever mention of it.
This DWP site has more information about the planned Universal credit.http://www.dwp.gov.uk/policy/welfare-r
eform/universal-credit/
The site says it is due to be introduced in 2013. I recall that some sort of small pilot is taking place currently. However I also recall reading that its introduction may be delayed because of some admin/systems issues but also because it will cost the DWP more money (ie it will pay out more) than the current system)
eform/universal-credit/
The site says it is due to be introduced in 2013. I recall that some sort of small pilot is taking place currently. However I also recall reading that its introduction may be delayed because of some admin/systems issues but also because it will cost the DWP more money (ie it will pay out more) than the current system)
Agree with Buenchico - this is a non-starter. For someone as bright and able in economics as VC this was a surprising statement.
Whilst on the face on it, converting the current system (of topping-up anyone who merely is entitled to the basic State Pension to a level of around £140 using benefits) to one where everyone gets the flat £140 seems cash neutral, it forgets entirely that those pensioners with additional income (from investments or other pensions) are currently not entitled to more than State Pension would also see another £35 added to their income.
It ain't going to happen.
It isn't so long ago that the Government of the day tinkered with the rules and reduced the required years of contributions to 30, from 39 for women and 44 for men. That was unaffordable to future generations, as is now evident, but it was a great vote-catcher at the time.
Whilst on the face on it, converting the current system (of topping-up anyone who merely is entitled to the basic State Pension to a level of around £140 using benefits) to one where everyone gets the flat £140 seems cash neutral, it forgets entirely that those pensioners with additional income (from investments or other pensions) are currently not entitled to more than State Pension would also see another £35 added to their income.
It ain't going to happen.
It isn't so long ago that the Government of the day tinkered with the rules and reduced the required years of contributions to 30, from 39 for women and 44 for men. That was unaffordable to future generations, as is now evident, but it was a great vote-catcher at the time.
There's nothing on the DWP link which refers to pension contributions, and the only reference is pensions will include more for extras such as rent. Besides the extra rise included in the original speech which did correctly look like pie in the sky, how a second party minister (ie without a majority behind them) can speak appearing to represent the entire government with a clear direct policy they had little or no chance, and possibly intention of carrying out only shows the depth these modern generation of snake oil salesmen are prepared to go to gain short term support. Sadly they know how short most people's memories are, I doubt more than a handful of people have noticed after two years this hasn't happened. That applies to all promises and always seem to evaporate days after made.
I don't know why they bother making the differentiation between "pension" and "benefits".
There is currently no requirement to have made any NI contributions to receive an income from the State at retirement age. Those who have been fortunate (or foolish) enough to have contributed to NI for thirty or forty years will receive a "pension" which will form part of their taxable income. Those who have contributed nothing will receive a "pension" which will almosr certainly be higher, will not be taxed and will also open the door to a myriad other benefits including Housing Benefit and Council Tax Benefit to name but two of the more lucrative. The two will be called different names but the result will be the same.
There is currently no requirement to have made any NI contributions to receive an income from the State at retirement age. Those who have been fortunate (or foolish) enough to have contributed to NI for thirty or forty years will receive a "pension" which will form part of their taxable income. Those who have contributed nothing will receive a "pension" which will almosr certainly be higher, will not be taxed and will also open the door to a myriad other benefits including Housing Benefit and Council Tax Benefit to name but two of the more lucrative. The two will be called different names but the result will be the same.
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