Rachel Reeves Funding Review

If you look at house prices and pensions freedom - 75% of people have money in pensions this way, then these are also sitting ducks for taxing and it will apply to more people than you think . This is likely just the start - there is no political bias on my side, however what I disagree strongly with is stifling aspiration.

these people with £1m of assets will also likely have not been a burden on the state and paid their dues in taxes over the years

im not saying I disagree with it and anyone who doesn’t need it should be encouraged to give it back

there are likely countless people taking cash , declaring low profits and claiming universal credit - they tick a low income box but in reality are on the fiddle

 

These people help make the black hole bigger at the expense of others

 

I don't think anyone will think "well I'm not going to try and earn a good wage because if I do I might not get winter fuel credit in 40 years"

 

https://www.theguardian.com/busines...the-future-with-her-public-finances-statement

Different party but same ****. Good piece that comparing her to George Osbourne.

 

Drawing the line is called Means Testing....universal benefits were always Labour ethics.. an anathema to the traditional Tories.

 

I agree, but this could be just the tip of the iceberg which further measures could dissuade people making retirement provision

don’t forget we live in a society where a decent proportion think ‘I’m not working a full week as I’m only £20 better off than being on Benefits’ - so it’s there to see now at the opposite end of the scale how folk tick.

 

This will just be the start of tax changes. Labour have been using the term ‘working person’ which I think means we can expect an increase in CGT to marginal income tax, the removal of higher rate pension relief and the tightening of inheritance tax.

For a society with a large public sector and a budget deficit I don’t see these as unfair solutions.

 

Seems to me that the generally higher than inflation earnngs increases will in turn mean a bigger pension increase next year (due to triple lock). She's mitigating that by taking it away first.

 

I have to say, until last year, social care just wouldn't have appeared on my radar, I was completely ignorant of the system and how it works, or doesn't.

Last year, at the same time, both my in-laws went into care, first as respite but swiftly to a residential basis. I spent several months at my in-laws with wife and her brother as we tried to work out what to do and action it.

The upshot was that they are in the same care home. Each place is £1,500 a week. So that's circa £12,000 a month for them both. They have very healthy savings and their family home has been sold (a place they shared together for over 50 years). They've been in the home a year, so already £150,000 has gone from their coffers. At current levels, they will run out of money in 3 and a half years time. At that point, if it comes, either they will be evicted to a local authority home or the family has to pick up the tab.

The costs of social care are frightening and dramatic, and with a population that's getting older, the current system just isn't going to work.

We're very lucky in that we can support to a point and their 2 kids have never been bothered about an inheritance, they just want their parents to be safe, but obviously we may have the same care needs in later life, and my mother isn't getting younger either. Imagine a decade of care for 2 people and the cost of it. A third would be unimaginable.

 

I mentioned this before the election (I think). This country needs everyone to pay into a ‘social care fund’ at for example £50 per month - also deducted from benefits , a deposit fund needs to be set up from the birth of a child at a similar amount - this money can be used by the govt to put into land /property etc and after the first cycle would see a huge fund amassed.

the main thing with certain tax increases is does it engulf a section of society who are not mega rich etc and actually hit the working man/classes. DWLC points out about care fees - I’m only guessing , but your parents will have been comfortable, sensible with money, yet have fallen foul of a system that if you’ve been a dole wallow all your life and paid scant regard to retirement provision, then you get it for free!

imo the public sector can have their pay rises , however the trade off should be sick pay after a month off ill goes out of the window unless it’s something such as cancer etc. I’m self employed and get £90 a week if I’m off long term irrespective of what it is - I have to pay £200 per month for a policy that kicks after 4 weeks off- the public’s sector should have these options to be deducted from salary at source if they want more robust cover - you can’t have it all ways and something has to give

 

it actually converts immediately as public sector workers have defined benefit pensions. An increase in salary leads directly to an increase in pensions.

On the plus side local government pension schemes are in considerable surpluses following the rise in interest rates. Every cloud…

 

A friend of ours is paying £1700 a WEEK not a month,had to sell her bungalow and that's not going to last long. She owed the home thousands till the bungalow was sold so had to pay interest on it.

 

If you haven’t already, pay for their funerals up front using a plan.
Once their savings reach around £20k, the council will pick up the costs (obviously taking pensions into account) and you “only” have to pay “top up”.
My step dad’s in care and his “top up” is £650 / mth.

if you haven’t already, get advice.
And good luck mate (my step dads been in care nearly 4 years now)

 

Many pensioners are well off, why should they get the credit when they don't

He must have meant £1500 a week, given it's £12000 a month.

 

Ta my maths isn't great lol.

 

Probably a tory mate.

 

https://www.statista.com/statistics/1235570/share-of-people-employed-in-government/
I don’t think in comparison our public sector is that large , local authority employment has drastically reduced over the last decade

 

I think and hope it will be graduated. Given labour's views on a straight cut off point.

 

Beg your pardon, it is per week, I'll edit it. Thanks for flagging that.

 

My wife was speaking with a lawyer just last week, her dad is 81 and has parkinsons and was diagnosed with early stage dementia in the last month. The home applied for some additional grant for his extra care needs and have pocketed it themselves, which begrudgingly is probably fair (I can't fault the carers at all, they've really been amazing at an incredibly challenging and emotional time). Sadly the home they are in have made it explicit that we'd have to cover the full difference once their funds run out (its part of the Royal naval benevolent trust as he's ex navy), all the more galling as they'd have paid around £700k to them at that point. She's due to have a chinwag with her brother in a few weeks and to be honest, unless asked, I respect they are the ones making very tough choices.

Thanks for the comment, much appreciated and I hope the situation with your step dad isn't too challenging.