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

[bohemiancoast.livejournal.com]

This is why there's a minimum savings level before this kicks in. This is a pretty complex issue; there's a lot of different things going on.

As for asset ownership, you have ignored the fact that means-tested benefits include the costs of rent (through Housing Benefit) but do not, for the most part, cover the costs of home ownership (except for mortgages in some limited circumstances).

[beingjdc.livejournal.com]

As far as I can tell, under the new rules you get more from the government if you lose your job with a mortgage than if you lose your job as a tenant...