Category Archives: Pensions

People deriving income solely from state pension won’t be taxed, says chancellor

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Clarification creates prospect of two-tier system for retirees solely on new state pension and those on private schemes

People who rely only on their state pension for their income will not have to pay tax on it, the chancellor, Rachel Reeves, has said, creating the prospect of a two-tier system for those in retirement.

The new state pension is poised to rise to £241.30 a week next April, putting the annual income for someone receiving the standard payment at £12,547 – just below the personal tax allowance of £12,570 a year.

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UK to reconsider decision to deny Waspi women pension payouts

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Millions born in 1950s lost out because of government failings over changes to state retirement age, campaigners say

Millions of “Waspi women” have been given fresh hope that they might receive compensation after the UK government announced it would revisit a decision to deny them payouts.

As many as 3.6 million women born in the 1950s are said to have lost out because of government failings in the way changes to the state pension age were made, prompting the Waspi (Women Against State Pension Inequality) campaign to launch in 2015.

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Reform’s public-sector pensions plan could cost billions extra, union warns

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Prospect says proposals to make payouts less generous would damage public finances rather than save money

Reform UK’s plans to make public-sector pensions less generous could cost billions extra a year and cause a ticking timebomb in the public finances, a leading trade union has warned.

Prospect said the plans unveiled by the party’s deputy leader, Richard Tice, would damage the public finances rather than save money “and end up costing taxpayers tens of billions of pounds in the years to come”.

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Widow of man conned out of pension savings to lose half the compensation to tax

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Robert Dewar’s widow, Susan, is a leading campaigner over multimillion-pound Norton Motorcycles fraud

The family of a deceased man, who was conned out of his retirement savings after investing in the Norton Motorcycles pension scam, is to lose almost half the subsequent compensation award because of a little-known tax rule.

A long-running battle to win an award from the Fraud Compensation Fund (FCF) meant that Robert Dewar’s pension was not reimbursed until 2024, five years after his death at the age of 64.

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Ministers to revive Blair-era Pensions Commission to tackle savings crisis

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Revived body will examine future of the retirement system as analysis shows pensioner income is set to fall

The government is resurrecting the Pensions Commission, amid fears that a retirement crisis could mean today’s workers will be poorer in retirement than the current crop of pensioners.

The move by ministers to revive the landmark commission, established by Tony Blair’s government in 2002, comes as analysis shows that the income of pensioners is set to fall in the coming decades.

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Nigel Farage accused of ‘fantasy promises’ with expensive policy pledges

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Reform UK leader unveils plans to reverse benefit cuts and bring in tax breaks without explaining how they would be funded

Nigel Farage has been accused of leaving a multibillion-pound black hole at the heart of his party’s spending plans after unveiling a series of expensive policy pledges to be paid for by cutting nonexistent items of government spending.

The Reform UK leader laid out a series of economic promises at a speech on Tuesday designed to take advantage of disquiet among Labour voters at the government’s policies on taxes and benefits.

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C of E vicars call for ’urgent and decisive action’ on increasing their pensions

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Lead signatory of letter to Church Times says it is ‘moral and Christian imperative’ to ensure dignified retirement

Church of England vicars are demanding an increase in pensions amid claims that many face an impoverished old age, with some forced to rely on food banks or move in with adult children.

Almost 2,000 C of E clergy have joined an action group on Facebook in the past few weeks and 700 signed a letter to the Church Times calling for “urgent and decisive action”.

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Rachel Reeves has promised not to raise taxes, so how can she fill budget coffers?

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Chancellor said to be planning measures including raising employer NI contributions and capital gains tax rates. We consider the likelihood of each and the potential for a row

During the general election campaign, Paul Johnson of the Institute for Fiscal studies repeatedly accused both main parties of indulging in a “conspiracy of silence” over their economic policies. Neither Labour nor the Tories would admit, he complained, that if they won they would have to announce huge tax rises or spending cuts to restore the public finances to anything resembling good health.

On Wednesday, 118 days after Labour won the election, Rachel Reeves will prove Johnson right. In her first budget she will spell out plans to raise an eye-watering sum of about £40bn from tax rises and spending reductions to wipe the slate clean and to pump funds into public services. She will also confirm changes to debt rules that will release up to £50bn more to borrow for long-term investment in new national infrastructure.

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Surprise fall in UK inflation badly timed for benefit recipients

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Payments such as universal credit linked to previous September’s figure, meaning a rise of just 1.7% in April

Last month’s surprise fall in UK inflation lands with bad timing for millions of people who receive state benefits linked to the figure, who can now expect their payments to rise by just 1.7% next April.

A number of benefits, including universal credit, are increased each tax year in line with the cost of living figure for the previous September.

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‘Tough decisions’ needed, Starmer tells cabinet, as he defends changes to winter fuel payments – UK politics live

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PM and the chancellor, Rachel Reeves, defend move to restrict payment to only the poorest pensioners

Like the Telegraph (see 11.25am), the Times has also published a new article with a Tory endorsement for Kemi Badenoch, but this one is potentially more significant. Margaret Thatcher is no longer with us, but for Conservative party members she is still the one figure from the party’s recent past whose authority is more or less unquestioned and Peter Lilley has written an article claiming that Badenoch would be a worthy inheritor of her mantle. He says Thatcher was a scientist, and Badenoch is an engineering graduate. Like Thatcher, Badenoch is focused on facts, and what works, he says. He goes on:

Leadership candidates are under great pressure to make popular pledges, to abolish specific taxes or set a numerical limit on immigration. Kemi, rightly in my view, has refused to do so. Voters want lower taxes and much less immigration (as do I), but they have seen every glib promise broken. To convince them, a new leader will need to show first, that policies have been rigorously worked out in practical terms and second, that we truly believe in them rather than adopting them to win votes. As Margaret Thatcher said: “To carry conviction, you must have conviction.”

Conviction is the fruit of hard-nosed scepticism. Kemi’s approach is similar to Margaret Thatcher’s, for whom I once worked. When ministers took a policy to her which was in line with all her prejudices, expecting instant approval, she would tear into it, challenging every weakness. Only when satisfied that a policy was totally robust would she take it on board – but then she pursued it with unwavering conviction. Kemi is likewise willing to challenge, criticise and expose weaknesses, which does not endear her to everyone. But we cannot afford to go on adopting half-baked, unworkable policies.

We can rage at Labour’s actions, but the public won’t listen to our narrative – unless we have a leader who can communicate.

Kemi Badenoch is that person. She is blessed with that rare gift in politics: the X-factor that means she can not only communicate but achieve all important ‘cut-through’, so that the public actually notice.

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Up to 50 Labour MPs could rebel over cut to winter fuel allowance

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Dozens said to be considering abstaining from Tuesday’s vote over pensioners’ payments, as PM says dealing with dissent is ‘matter for chief whip’

As many as 50 Labour MPs could refuse to back the government’s controversial plan to cut the winter fuel allowance, despite Keir Starmer urging back benchers to get behind a measure he has conceded is “unpopular”.

While few on the government benches are expected to vote against the policy in Tuesday’s vote, dozens are believed to be considering abstaining or being absent – though rebels say the numbers in their ranks are very hard to predict.

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Priti Patel knocked out of Tory leadership race with Robert Jenrick securing most votes in first round – UK politics live

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Former home secretary finishes behind Mel Stride after only securing 14 votes

PMQs is starting soon. Here is the list of MPs down to ask a question.

Kemi Badenoch is the clear favourite of Conservative members for next leader, and will be very hard to beat if she makes it into the final ballot of two, according to a survey by ConservativeHome.

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Ministers launch pension credit campaign after restricting winter fuel payments

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Government urges pensioners to check their eligibility for credit which will also qualify recipients for winter fuel support

Ministers have launched a pension credit publicity campaign to minimise the impact of the government’s decision to radically restrict winter fuel payments.

Last month the chancellor, Rachel Reeves, introduced a means test for the winter fuel payments, which have been a universal benefit available to all pensioners since 1997, so that only those on pension credit would qualify, as part of the “difficult decisions” she had to make having inherited a “dire state of public finances” from the Conservatives.

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Macron told ‘people detest you’ as far-right bids to be biggest party in France

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Centrists are fighting for their survival in Sunday’s poll, amid fears the president’s snap election has unleashed chaos

Emmanuel Macron’s centrist grouping was fighting for survival this weekend before the first round of France’s high-stakes snap election, which could see the far-right National Rally (RN) become the biggest force in parliament.

Macron, who warned last week that France risked “civil war” if Marine Le Pen’s anti-immigration RN, or the leftwing New Popular Front coalition, came to power, said at the European summit in Brussels that “uninhibited racism and antisemitism” had been unleashed in France.

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Tory welfare reform cost working-age families thousands while pensioners benefited – report

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Retirees or those on disability benefit are biggest annual winners, while large families are £4,600 worse off, says Resolution Foundation

Pensioners and people on disability benefits are the winners from radical changes to the welfare system made by the Tories over the last decade, while working-age families are losing out by thousands of pounds every year, according to a report by the Resolution Foundation.

The Conservatives’ 14-year overhaul of social security has shifted spending away from children and housing to supporting elderly people, and broken the link between entitlement and need for some of the poorest households in the country, the report says.

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Labour shifts poll tactics to target fearful Tory over-65s

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Alarm grows over possible pension cuts as research suggests Jeremy Hunt tax cut announcement was ‘blunder’

Labour is to wage a new campaign to win over Tory-supporting pensioners in an attempt to neutralise one of the government’s last remaining electoral strengths, amid evidence the Conservatives are now performing as badly among the age group as they did under Liz Truss’s leadership.

With less than a fortnight to go until local elections in England, which some Tories fear could trigger an attempt to topple Rishi Sunak, the Observer understands that Keir Starmer’s top officials are reorienting their campaign after detecting alarm among pensioners over the impact a Conservative tax-cutting pledge could have on pensions and the NHS.

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Labour has 99% chance of forming next government, says elections expert – UK politics live

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Prof Sir John Curtice, the psephologist and lead election analyst for the BBC, said the chances of a Tory revival were small

In the House of Lords peers have just started debating the second reading of the leasehold and freehold reform bill. The bill has already passed through the Commons.

Normally, at this stage of the process, the content of a government bill is all but finalised. But, as No 10 admitted on Monday, the government has still not decided how far it will go in terms of cutting ground rents for existing leaseholders.

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Tory MP Robert Halfon quits as minister and James Heappey confirms resignation, paving way for mini reshuffle – as it happened

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Robert Halfon quits as skills, apprenticeships and higher education minister as James Heappey confirms decision to step down

In interviews this morning Gillian Keegan, the education secretary, admitted that special educational needs provision was in crisis, Ben Quinn reports.

Universities in England could be told to terminate their arrangements with foreign countries if freedom of speech and academic freedom is undermined, the government’s free speech tsar has said. As PA Media reports, Prof Arif Ahmed, director for freedom of speech and academic freedom at the Office for Students (OfS), said many universities and colleges in England have “international arrangements” – including admitting overseas students on scholarships and hosting institutes partly funded by foreign governments. PA says:

The higher education regulator launched a consultation on guidance about freedom of speech, ahead of universities, colleges and student unions taking on new free speech duties.

The guidance includes examples to illustrate what higher education institutions may have to do to fulfil their new duties – due to come into effect in August – to secure freedom of speech within the law.

University A accepts international students on visiting scholarships funded by the government of country B. Scholars must accept the principles of the ruling party of country B, and direction from country B’s government via consular staff. Depending on the circumstances, these arrangements may undermine free speech and academic freedom at University A. If so, that university is likely to have to terminate or amend the scholarship agreement.

If it means that there are people who are employed by an institute who are preventing legitimate protests or shutting down lecturers from covering certain kinds of content regarding that country for instance, or that country’s foreign policy … If that behaviour amounts to a restriction of freedom of speech within the law, and someone brings a complaint to us, then we may find that the complaint is justified and then we make recommendations …

If there are problems, universities will have to do everything they can to act compatibly with their freedom-of-speech duties. Insofar as that means a rethinking of their relationship with other countries, obviously that’s something that would be a good idea for them to start thinking about now.

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Thousands of UK women owed pension payout after ombudsman’s Waspi ruling

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The way women’s state pension age was raised plunged retirement plans into chaos with many now in line for compensation

Thousands of women are owed compensation because of government failings related to the way changes to the state pension age were made, a long-awaited official report has said.

The Parliamentary and Health Service Ombudsman (PHSO) said those affected were owed compensation but added that that Department for Work and Pensions (DWP) had clearly indicated it would “refuse to comply”, which was “unacceptable”.

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UK politics: Sunak refuses to say how abolition of national insurance would be funded – as it happened

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PM says ‘people trust me on these things’ and refuses to be drawn on whether government would forgo entire £46bn raised from measure

Keir Starmer has accused Jeremy Hunt of repeating the budget mistakes made by Liz Truss during her disastrous premiership.

In comments on the budget during a visit to a building site this morning, Starmer focused on Hunt’s proposal to abolish employees’ national insurance over time, saying that this was a bigger unfunded tax promise than those in Truss’s mini-budget. (See 9.28am.)

How humiliating was that for the government yesterday?

We’ve argued for years that they should get rid of the non-dom tax status, they’ve resisted that. And now, completely out of ideas, the only decent policy they’ve got is the one that they’ve lifted from us.

Nothing that Jeremy Hunt did yesterday, nor anything the OBR said, changes anything very significantly. Which is a shame. Because that means we are still:

-heading for a parliament in which people will on average be worse off at the end than at the start,

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