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State Pensioners will be paying tax.

2oldcodgers

Currently any pensioner with a weekly state pension of over £242 a week is paying income tax on the excess. My state pension went up to £258 a week last April.
Now it looks like that it will increase further next April by up to 8% making the payment £279 a week. Of that I will have to pay an extra £7.40 tax a week!! Ridiculous!
Why are state pensioners having to have some of the increases taken off them. We didn't get any tax relief when we paid in so why should we pay tax now? If the state pension followed the likes of a private pension you had tax relief by increasing the amount paid in so it is only fair that you pay tax when you get it back.
Confused and annoyed.

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2oldcodgers

woodbine said:

If I were you I would be thinking myself lucky that I was getting £258 a week SRP, I wouldn't be concerned about what may happen next year, the problem doesn't lie with the amount of pension but the freezing of tax thresholds and that affects anyone who pays tax, the good news for you is that you will still be £12 a week better off next year when hopefully inflation will be below 5%

It also has to be said that unlike you (and me shortly) many pensioners are still on the pre 2016 SRP which is currently £159 per week so well below paying tax of any sort.

Thanks
I retired at age 65 in 2014 so am on the 'old' state pension. I have an enhanced pension simply because I worked hard and earned quite a decent income for the whole of my working life. Because of the large amount of NI contributions the DWP give me a sizeable second pension - on the basis of what you pay in you get back sort of thing.
To be able to get that second pension I spent years studying and examinations to improve my lot like most people are able to do.
Additionally I get approx £65 a week guaranteed pension credit as our total income falls below what the DWP say that we need.
Conversely if I had just plodded along in my job earning the basic income my Pension Credit would be paid to compensate for the loss of the second pension. You don't pay tax on Pension Credit!
So in effect I would not be paying tax weekly than I do now - silly me for working/studying hard.

poppy123456

You were very fortunate to be able to do that. Unfortunately many people can’t.

WhatThe

silly me for working/studying hard

Not at all! It suggests you enjoyed a meaningful, socialised, independent adult life which many of us haven't (couldn't)

WhatThe

I'm ashamed to say this but I'm over 60 and surviving on £60+ weekly - despite trying to work and study hard (no debts just a bedroom tax to pay)

(the £20 uplift to UC only offset the bedroom tax I pay and still amounted to far less than my legacy benefits - the group action for judicial review was always going to be a waste of time)

michael57

WhatThe said:

I'm ashamed to say this but I'm over 60 and surviving on £60+ weekly - despite trying to work and study hard (no debts just a bedroom tax to pay)

(the £20 uplift to UC only offset the bedroom tax I pay and still amounted to far less than my legacy benefits - the group action for judicial review was always going to be a waste of time)

nothing to be ashamed about your debt free unlike many who live way beyond there means be proud of yourself

WhatThe

Hi, no I haven't received the correct benefits for a long time

I thought a DHP was only for the short term though

poppy123456

WhatThe said:

I thought a DHP was only for the short term though

Yes that's correct and then you need to reapply. It's also not guaranteed but even if it's just for a short time then it's worth applying.

Steve_in_The_City

DHP is short term but can easily be renewed (if you meet the criteria). I had it for 2.5 years until I moved to a 1 bed flat. So it is well worth applying for.

2oldcodgers

Biblioklept said:

woodbine said:

Biblioklept said:

Have to admit I've always assumed that by the time I get to retirement age that state pension will no longer exist so I've never much looked into it and don't really understand it. I didn't realise it was taxed??

In most cases it isn't taxed but where all pensions added together it can be, the N.I pension pot has enough in it to suggest that pensions will be paid for decades.

Oh so if someone's personal pensions and state pension take their income high enough they'll pay tax? I mean I don't see the issue with that but maybe I'm being naive?

It's nothing to do with other income or other pensions. The problem is that the state pension alone , in my case is over the tax free amount. So consequently that excess ( £14508 state pension as from next April - the tax free allowance £12570 = £1938 will suffer tax at 20%.
Any other income will all suffer tax of at least 20% as well.
So in my case and I can't be the only one, the increase next April will be 6.4% and not 8% - brilliant!

ladyluck

It seems at last the government has raised the state pension whilst freezing the allowance before tax. It’s win, win for them. Keeping pensioners happy to have their pension raised, meanwhile creating new taxpayers if they have a few pounds in a private pension. How can that be fair?

2oldcodgers

ladyluck said:

It seems at last the government has raised the state pension whilst freezing the allowance before tax. It’s win, win for them. Keeping pensioners happy to have their pension raised, meanwhile creating new taxpayers if they have a few pounds in a private pension. How can that be fair?

Yes it is.
And for those whose only retirement income is the State Pension (no private pensions etc) they too are likely that next will have to cough up tax on their State Pension.

Wibbles

Any Pension (be it sourced from State or Private) is classed as taxable income - and therefore, like any normal earnings is taxed...

Why should it be classed as tax free ?

2oldcodgers

woodbine said:
which is good news as inflation should be around 5% next year and you will be getting a 6.4% rise...well done

Put it that way you are right but what would happen if wages/inflation started to hit the economy from next month to September 2024 - If either went up by more than 6.4% I would lose out.
The 'missing' 1.6% rise ends up back in the hands of the government. You could also say that the State Pension is also a means tested payment - earn too much and the state pension is reduced.
Still there is nothing I can do about it - what happens happens.
This country has it in for those that saved their salaries/wages whilst working - taking no holidays etc never mind the difficulties being encountered with Blue Badge applications for the disabled as well as the 'pretending ' that the 10 year review will be a box ticking exercise only.

2oldcodgers

Wibbles said:

Any Pension (be it sourced from State or Private) is classed as taxable income - and therefore, like any normal earnings is taxed...
Why should it be classed as tax free ?

I believe that it is called an income replacement benefit as is the old ESA.
Should I have been paying tax on my old contributory ESA as well?

poppy123456

2oldcodgers said:

Wibbles said:

Any Pension (be it sourced from State or Private) is classed as taxable income - and therefore, like any normal earnings is taxed...
Why should it be classed as tax free ?

I believe that it is called an income replacement benefit as is the old ESA.
Should I have been paying tax on my old contributory ESA as well?

Contributions based benefits are taxable income. Full list here https://www.gov.uk/income-tax/taxfree-and-taxable-state-benefits

chiarieds

The title of this thread is misleading.....for those on the basic state pension, they receive a maximum of £8,122 per annum, whilst those on the new state pension receive £10,600 pa., so well below the Personal Allowance.

Self employed people didn't have the luxury of an Additional State Pension, nor those who don't qualify for the basic state pension (a man born before 6 April 1951, a woman born before 6 April 1953).

2oldcodgers said:
This country has it in for those that saved their salaries/wages whilst working - taking no holidays etc never mind the difficulties being encountered with Blue Badge applications for the disabled as well as the 'pretending ' that the 10 year review will be a box ticking exercise only.

The title is therefore also a tad scaremongering, as it won't apply to the majority of our members.

We are all well aware that Attendance Allowance doesn't help with a Blue Badge application as this has been mentioned on several threads. So, would you instead provide a link about the '' 'pretending ' that the 10 year review will be a box ticking exercise only.''

2oldcodgers said:

And for those whose only retirement income is the State Pension (no private pensions etc) they too are likely that next will have to cough up tax on their State Pension.

Could you also provide a link for this, please?

2oldcodgers

poppy123456 said:

2oldcodgers said:

Wibbles said:

Any Pension (be it sourced from State or Private) is classed as taxable income - and therefore, like any normal earnings is taxed...
Why should it be classed as tax free ?

I believe that it is called an income replacement benefit as is the old ESA.
Should I have been paying tax on my old contributory ESA as well?

Contributions based benefits are taxable income. Full list here https://www.gov.uk/income-tax/taxfree-and-taxable-state-benefits

Well I never knew that.
Seems that someone made a boo boo with me. I received full pay for a year and another year on half pay. During all of that time I claimed and was awarded Contributory ESA. I paid no tax on the ESA and my payslips (which I kept) show nothing other than salary with tax and NI being deducted as normal.

2oldcodgers

chiarieds said:

The title of this thread is misleading.....for those on the basic state pension, they receive a maximum of £8,122 per annum, whilst those on the new state pension receive £10,600 pa., so well below the Personal Allowance.
Self employed people didn't have the luxury of an Additional State Pension, nor those who don't qualify for the basic state pension (a man born before 6 April 1951, a woman born before 6 April 1953).

2oldcodgers said:
This country has it in for those that saved their salaries/wages whilst working - taking no holidays etc never mind the difficulties being encountered with Blue Badge applications for the disabled as well as the 'pretending ' that the 10 year review will be a box ticking exercise only.

The title is therefore also a tad scaremongering, as it won't apply to the majority of our members.
We are all well aware that Attendance Allowance doesn't help with a Blue Badge application as this has been mentioned on several threads. So, would you instead provide a link about the '' 'pretending ' that the 10 year review will be a box ticking exercise only.''

2oldcodgers said:

And for those whose only retirement income is the State Pension (no private pensions etc) they too are likely that next will have to cough up tax on their State Pension.

Could you also provide a link for this, please?

First of all for those that retire before 2016, there is the basic state pension. They would be entitled to the 'second state pension' dependent on the number of years earned and how much they contributed by way of NI.
They may well have this second pension which will pay up to £156.20 a week on top of their state pension.

I reached state pension age before April 2016

There is no fixed amount for the additional state pension under old or new state pension.

If you qualified for the state pension before 6 April 2016, you might get some additional pension on top of your basic pension (£156.20 in 2023-24).

You'll automatically get any additional state pension you're eligible for.

Additional state pension explained - Which?

Most if not all of the people I know all receive some level of the second pension. In my case it is just over £100 a week on top of the SRP.

The experience of applying for a Blue Badge by my wife who is now 80 having had it refused 3 times and now has to give up trying as we both accept that it will never happen.
As for my BB which I have had for many many years has hit the buffers. The LA want information that they had back in 2020 and never returned the original evidence. Even explaining to the LA that I have a Motability car does not hold water. Other than to waste hours trying to speak with the case manager that originally gave me the award I am left with no badge. Do I want more hassle? No

As for the 10 year PIP award review.
In the first instance I contacted my local AgeUK who suggested that it would be in my interest to not just tick the box 'No Change' but to attach a couple of extra sheets of paper explaining why I was given the various points to make up the Enhanced Care & Mobility award. They thought that it would/could be dangerous to not do that exercise.
Also a Senior Welfare worker states on Rightsnet the following:

Today’s announcement re: light touch and additional support/help/vulnerability markers must be a concern.

Fail to return your form when there’s no marker on your file and the claim ends.
Fail to return your form where there’s a marker and get referred to a HCP. HCP report v PIP2 is winnable. HCP report v light touch form is a no context win for the HCP recommendations in most cases.

All of a sudden light touch looks like something darker.

Discussion: Copy of new PIP light touch review form that will be going live in August - Rightsnet

chiarieds

2oldcodgers said:

First of all for those that retire before 2016, there is the basic state pension. They would be entitled to the 'second state pension' dependent on the number of years earned and how much they contributed by way of NI.
They may well have this second pension which will pay up to £156.20 a week on top of their state pension.

I know that a man born before 6 April 1951, or a woman born before 6 April 1953 receive the basic state pension as I quoted above (so not 'all those that retire before 2016,' by which I take it you mean reach state pension age, get the basic state pension, so your comment is erroneous).

I am also well aware of the additional state pension, tho should perhaps have provided a link: https://www.gov.uk/additional-state-pension again a man born before 6 April 1951, a woman born before 6 April 1953 as I also mentioned. I thank you for trying to give links however, tho they unfortunately didn't answer my queries.

Sorry about your BB; you don't have to 'speak with the case manager that originally gave [you] the award,' rather ring the DWP to ask for a copy of your award, even tho the best time to ring is inconvenient to yourself.

As for the WRO's comment about the light touch review (PIPAR2), as I tried to stress in the post about this, he seemed concerned about those who had a vulnerability marker. I don't think there are otherwise concerns about this.

2oldcodgers

It would seem that I am not the only that is complaining about having to pay tax on my state pension.
It is all over the internet.