Can I have this deal?

[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.

Comments

[beingjdc.livejournal.com]

It is certainly nonsense that people in large houses with small incomes get so much media coverage for their inability to pay their council tax, when they have access both to a means of increasing their ability to pay, and of reducing the bill.

However, as as society there has to be some incentive for people to accumulate wealth as well as to consume it. If my job's insecure in your system, I may as well spend my savings today on things I want, rather than next year on things I need - the taxpayer can cover that.

The actual answer for these pensioners is probably to buy an annuity with their excess savings, of course, the pension guarantee savings reward element or whatever it's called this year should see them right on the maths.