winter fuel allowance should be scrapped

  N47. 03 Jan 13
Locked

for the majority and just given to those who claim pension credit ie the poorest of pensioners.

If the working well paid can loose their child benefit if one of them earns over £60,000 why can't those pensioners who do not really need it, have it.

http://www.dailymail.co.uk/news/article-2256466/Paul-Burstow-Four-pensioners-lose-help-fuel-bills-raise-1-5billion-fund-elderly-care.html

  Forum Editor 07 Jan 13

When the National Insurance system was set up it was intended as an insurance scheme, and the (compulsory) payments were indeed referred to as insurance premiums.

By paying in you insured yourself against one or more of the five social evils mentioned by William Beveridge in his report on British society.

The 'evils'were: Disease,Want,Ignorance,Squalor, and Idleness. All of which still exist in today's society to a greater or lesser degree.

  wiz-king 07 Jan 13

pest is spamming again FE informed

  john bunyan 07 Jan 13

spider 9

"But even that is mitigated by the pension being part of your taxable income, so wealthy pensioners do, automatically, get less. It should be the same for fuel allowance (at the very least)."

Agreed - see my post of 4th Jan at 5.43pm. A simpler solution as I believe that, de facto the winter fuel payment is part of the OAP, which is low in the UK compared with similar EU states (Germany, France etc)

  lotvic 07 Jan 13

I think john bunyan has the best solution so far. My suggestion is: the winter fuel payment as it is now be abolished. There would be immediate savings by virtue of no administration charges and the current £amounts could be incorporated into a rise in State Pension and the income level to qualify for Pension Credit adjusted. If there is a rise in State Pension clawback from the wealthy would be accomplished via Tax payable and therefore be on a sliding scale.

  john bunyan 07 Jan 13

lotvic

Thanks. As some may find it difficult to put the £200 (or £100 if part of a couple) away monthly, it could still be paid as now in Nov / Dec as a lump sum but part of the overall yearly total. Some countries pay pensions in 13 instalments, with two payments in late spring...

I would lose out; my wife would not, as her pension total is below the tax threshold for her age, but mine would be taxed at the appropriate rate as I have a company pension.

  BT 07 Jan 13

Some countries pay pensions in 13 instalments,

So do we. I get mine every 4 weeks. 13 payments each year

  john bunyan 07 Jan 13

BT

Thanks, I had forgotten, as it seems roughly monthly!

  N47. 07 Jan 13

The whole idea is to limit the payment to those who really need it. The remainder of the budget could then fund help with care home costs.

If you own your own home and wish to pass it on, or part of the value. What would you rather have £200 for 20 years totaling £4,000 that is just a bonus to some. Or possibly having to sell your home and use the proceeds to fund care home fees if you were unfortunate to have to go into one. You would have to contribute but there would be a limit, there is no limit at the moment. You could spend all your assets to a care home.

  Aitchbee 07 Jan 13

N47 - as I live alone, [and always will], I would be happy to use the money that my house is worth to pay for care ... if need be. But must be french Au Pair female < 25 ;O}

  bumpkin 07 Jan 13

Lotvic, I agree with you in principle but there will be no savings on administration or anything else it will just be wasted by the government on something else, probably their expenses.

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