Just Been...

[BlackadderV]

...checking my bank account on line. Noticed a credit today from the DWP for £10. Couldn't understand it then it suddenly dawned; the £10 Christmas bonus. Forgot totally about that. The £10 was introduced by Ted Heath in 1972. If it had kept pace with inflation, what should it have been today?

[jim360]

Apparently, over £120!

http://www.thisismoney.co.uk/money/bills/article-1633409/Historic-inflation-calculator-value-money-changed-1900.html

[BlackadderV]

Thanks.

[jim360]

It's worth noting that this figure depends somewhat on the measure of inflation used (RPI, CPI, and others). Additionally of course there's the change to decimalisation, which threw in an automatic inflation boost of, I think, 240% in essentially a day.

[janbee]

Don't spend it all at once blackie xx

[BlackadderV]

2.4%, surely?

[BlackadderV]

Anyway, decimalisation preceded the Xmas bonus.

[ToraToraTora]

when do I get mine?

[ToraToraTora]

sorry how did decimalistation increase it by 240% in a day? we went from 240d to 100np but a pound was still a pound. I know there was inflation because of shop keepers using it as an excuse to hike prices but 240% sorry jim don't follow you there. And the £10 was introduced after decimalisation anyway.

[jim360]

Of course it did, because that was 1971 I think. My mistake. Also I overlooked that the pound stayed the same but the definition of a penny changed, another silly error. Whoops.

It would have been 240% rather than 2.4%, though, because the value of a new penny was equivalent to the vale of 2.4 old pence, making for an effective change of (2.4/1)*100% = 240%. Since inflation is measured by the pound it doesn't matter, though.

(I think there's another error, in that inflation is usually measured as (new-old)/old rather than just new/old. But never mind.

[Old_Geezer]

Whoops :-)

[Mamyalynne]

TTT

If you are eligible,then you should receive it any time soon.


https://www.gov.uk/christmas-bonus/eligibility

[BlackadderV]

I can't remember if it was 1972 or 1973, but I believe the basic state pension at that time was £10 per week so the rationale was that people would get an extra' week's pension before Xmas. Pity things have not kept pace - it really is an insult today.

[factor-fiction]

On the plus side, for those that receive it the winter fuel allowance more than makes up for reduction in the real value of the Christmas Bonus.
The bonus does look mean now but I don't think any government will scrap it (it'd be accused of taxing old age or penny pinching) or increase it since anything other than a huge (and probably unaffordable) increase would be seen as a joke/insult.

[BlackadderV]

I agree, FF. Forgot to factor ( no pun) in the heating allowance.

[Old_Geezer]

I wouldn't see it as an insult. State pensions should be large enough not to need added extras at various points anyway. Still every little helps, as some say.

[BlackadderV]

Just spent mine. 20 cigs and a bag of chips: all gone now.

[dzug2]

..when do I get mine?..

On your regular pension day this week

It should really be abolished - but the press would have a field day so I can't see any chancellor doing so.

[Mamyalynne]

I don't see it as an insult either,it will more than cover my Christmas dinner with a bit left over.

[VHG]

Thanks for this.

I just started getting my State pension only 2 months ago so wondered why I got a mysterious £10 in my bank today.

Now I know.