Where am I? 
Home Pensions - Retail Pensions General
Categories: Pensions General
Topics: basic state pension| means testing| Nick Clegg
Deputy Prime Minister Nick Clegg has called for state pension benefits to be means-tested in a move which would see wealthier older people having to pay for certain services currently available to them free of charge.
Clegg told the BBC that richer elderly people should give up their pension age benefits, such as free TV licenses and bus passes, to help the government reduce the deficit.
The government has announced it will implement a universal state pension of around £150 per week from 2015 in an attempt to eradicate means-testing from the complicated present system.
However, Clegg said the 30 additional benefits pensioners get, regardless of wealth, should only be available to poorer pensioners.
"We should be asking millionaire pensioners to perhaps make a little sacrifice," he said.
The Telegraph reported Conservative MPs are strongly opposed to any means-testing as it is a highly sensitive issue.
Over-50s group Saga has proposed a system where pensioners can donate their winter fuel payment to others if they feel they do not need it.
The "fuel-anthropy" system would allow pensioners to pass their winter fuel allowance on to other pensioners on lower incomes within their local community.
| Share | |
| Comment | Clegg calls for state pension benefits linked to wealth |
More pensions general news
Email alerts
Recommended reading
Categories
Topics
Comments
Nick Clegg means Test State Pensions
Another ill thought out idea. When will politicians realise that if they take away the incentive to look after ourselves we will all sit back and rely on the state. What's the point of saving for your own retirement if the Government will then penalise you for doing so?
Posted by: Tony
I will if you will
Did you know that Gordon Brown claimed for a TV license when he was prime minister, and god knows what else, yes Nick a good idea.......starting with the MP's
Posted by: Geoff
Right on Geoff
Clegg the Clot - Après Vous. Let's see you lot give up your expenses travel junkets on 'fact finding' missions to the Caribbean, your gold plated pensions (you should all be signed up to NEST). And all the other little comforts (including your subsidised bar) that you enjoy, but keep quiet about. As ever a champion hypocrite - but then that's what politicians are, after all.
Posted by: Harry Katz
Clegg's Call for Means Testing
@Tony You have a simplistic view of what creates welth and poverty. All wealth is not created by hard work, Some is I grant you but by no means all. Much is due to good fortune and an awful lot due to inheritance. Likewise all poverty, by whatever measure is not due to idleness. There are millions of people who are unlikely to ever inherit anything and in low paid employment who no matter how hard they work are never going to acquire much wealth. They and their families can just about survive on their low earnings.
Posted by: John Smyth
Spot On Neil
Totally agree with the first comment by Neil Richards. Claw back through taxation is the best way. Means testing costs, and the new universal payment is supposed to remove a lot of it, where as those who don't need these extra give always, are probably already having to file a yearly tax return anyway. For those who live abroad and are not subject to UK Tax, just make the right to Winter Fuel, TV, and Bus Passes, UK residents only. Simples !
Posted by: Paul Mills
Related articles
Most Read
Audio / Visual
With the industry's biggest fund managers, IFAonline welcomes you to the media centre.
This year we have 14 awards designed to mark out the very best products in a highly competitive and innovative market. This includes three new awards for 2011 to reflect the developments in this rapidly growing market: Best Dual/Multi-Index Product, Best Structured (Oeic) Fund and Best Structured Product Provider.
Events
Poll
|
|
Job search
Ifaonlinejobs will open the right investment career path for you. Search hundreds of vacancies on www.ifaonlinejobs.co.uk now
In Focus
Two months left before the ‘real RDR deadline’ – are you compliant with the required professional...
Viewpoints
2012 marks a watershed for the Life companies, fund managers, banks and advisers who service...
sponsored by
At last a bit of common sense..
But why insist on means testing this? Surely all that is required is to identity a threshold over which the benefits wouldn't apply (say £40000) and then lower tax threshold for the over 65's accordingly. Must be easier and cheaper to administer? I'm sure Fred the Shred could do without his winter fuel allowance and free TV....
Posted by: Neil Richards