fivemack: (Default)
[personal profile] fivemack
http://news.bbc.co.uk/1/hi/business/7813791.stm: "But for every £500 they have saved over [£6000], the authorities assume they earn £1 per week in "tariff income" and reduce the benefit payments accordingly."

£1/week/£500 is 10.9%, a significantly better deal than Madoff!

Changing that figure to 25p would seem a nice boost to poor pensioners in next year's budget; I think that a truly honorable government should also commit to providing an investment which pays the "tariff income", at least on sums up to that on which the tariff income equals the State pension, and that would provide the right incentive to keep the assumed rate of tariff income sensible.

Date: 2009-01-08 03:09 pm (UTC)
simont: A picture of me in 2016 (Default)
From: [personal profile] simont
*nods* It's the rate at which the government expects you to use up your savings (or, at least, won't pay to protect you from having to). Of course, if you do so as specified, then the next year you have less money saved and your benefits go up again.

Date: 2009-01-09 05:47 am (UTC)
From: [identity profile] tau-iota-mu-c.livejournal.com
Welfare as a servo system. Let's hope it's got in built damping.

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