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Cameron Pledge To Guarantee State Pensions

Cameron Pledge To Guarantee State Pensions

Cameron Pledge To Guarantee State Pensions. London has voted World’s Best For Foreign Buyer David Cameron has fired the starting gun for the next general election by promising a cash boost to taxpayers and the elderly.

In an interview with the Sunday Times, the Conservative leader has pledged to raise pensions by a minimum of 2.5% each year up to 2020.

He also said he wanted to cut the top rate of income tax.

The Prime Minister pledged to continue guaranteed rises in the basic state pension by retaining the “triple lock” system if the Conservatives win the 2015 general election.

Mr Cameron also sought to reassure older voters that their pay-outs would continue to rise in line with the higher of inflation, wages or 2.5% at least until 2020.

Pensioners are facing a post-election squeeze on benefits such as winter fuel payments, bus passes, TV licences and prescriptions as MPs try to provide for an ageing population.

But Mr Cameron insisted that pensions would not be hit by continued austerity measures.

“A Conservative government will offer pensioners a more secure future by pledging today that we will carry on using the triple lock after the next election to protect the basic state pension,” he said.

“We can only afford to do this because we are taking difficult decisions to cut the deficit and get spending under control as part of our long-term economic plan.”

“I want to do everything we can to help people who have worked hard and done the right thing.”

The basic state pension will be around £440 a year higher from April than if it had been increased in line with average earnings since 2011-12, Downing Street said.

Mr Cameron has already indicated that the state pension would be the only spending exempt from a new cap on overall welfare spending.

Alex Salmond wants to hold a TV debate with Mr Cameron

Alex Salmond wants to hold a TV debate with Mr Cameron

The Sunday Times interview comes as a poll carried out by Lord Ashcroft reveals more than a third of people who voted Conservative in the last General Election say they would not vote for the party in the next election.

The former Tory Party deputy chairman’s findings revealed around half of the ‘defectors’ had switched allegiance to the UK Independence Party (UKIP), with a fifth aligning themselves with Labour or the Lib Dems and a third undecided.

Mr Cameron has also come under renewed pressure to commit to a head-to-head TV debate with Alex Salmond over the referendum on Scottish independence.

The PM has steadfastly refused Mr Salmond’s challenge but an SNP poll found over three-fifths of people in Scotland and over half of people in the rest of the UK want to see a public debate.

In a new letter to Number 10, Mr Salmond told Mr Cameron that his New Year plea to Scots to stay in the UK undermined this argument.

Labour leader Ed Miliband has pledged action to close a legal loophole used to exploit cheap foreign labour if his party wins in 2015.

Writing in The Independent on Sunday, he said he wanted to address “understandable” public fears over lifting work restrictions on Bulgarians and Romanians, conceding some UK nationals “lose out” as a result of new arrivals.
Mr Miliband said the key was ending the country’s “chronic dependency on low-skill, low-wage labour”.
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The New Pension System Will Be Implemented In 2017

The New Pension System Will Be Implemented In 2017

  • Posted: Jan 14, 2013
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The Government’s own figures reveal many pensioners will ultimately be worse off under a system with a single flat rate.

The Government wants to change the pension system that one flat rate pension fits all scenarios. This new system that will be implemented from 2017 will leave more than half of pensioners worse off by 2060.

Ministers say the coalition’s plans to simplify the system will particularly help women, low earners and the self-employed.

All new pensioners from 2017 will receive a single, flat rate equal to £144-a-week in today’s money.

Around 750,000 women will receive an average of £9-a-week extra, while millions of self-employed people will be brought fully into the state pension for the first time.

But the Government’s own White Paper reveals more than half of people reaching state pension age after 2060 will be worse off.

It has been stated that one in five pensioners will be better off the new system, less than one in 10 worse off and other unaffected.

But over time, the proportion losing out will rise rapidly and eventually many will be down by more than £2 each week.

The Institute for Fiscal Studies (IFS) said the plans implied a cut in pensions entitlements for most people in the long run.

Steve Webb, the Pensions Minister, stated that accordingly with new system, high earners will be most affected but in the long run will be ” far more winners”.

“Our simple, single tier pension will provide a decent, solid foundation for new pensioners in an otherwise less certain world, ensuring it pays to save,” he said.

He also said there would be no impact on public sector pension schemes despite unions claiming a hard-fought deal on the Local Government Scheme could be hit.

The Treasury will receive billions of pounds in extra National Insurance (NI) payments because people will have to work far more years -35 years rather than 30 years – to qualify for the full amount.

However, Downing Street rejected suggestions that the change was designed to save money or raise extra cash for the Treasury.

And David Cameron said: “We’re going to have later retirement ages as we’re all living longer. I think it’s fair to ask people to work a bit longer as we are all living longer.”

The IFS said the shake-up looked like a “welcome simplification” but warned there would be a “fairly complex pattern winners and losers in the short-term”.

“The main effect in the long run will be to reduce pensions for the vast majority of people, while increasing rights for some particular groups, most notably the self-employed,” a spokesman said.

“This will help a lot of women and a lot of lower paid workers who otherwise wouldn’t get a decent state pension.”

TUC General Secretary Frances O’Grady said: “Today’s pensioners will be angry that they miss out on this reform and face continued threats to remove the winter fuel allowance and help with travel.

“The increases in the state pension age redistribute from poorer people with shorter life expectancies to the better-off who live longer.”

But Joanne Segars, Chief Executive of the National Association of Pension Funds, said: “Today’s announcement for a simpler, more generous state pension is a much-needed shake-up that will ultimately help millions of pensioners and savers.

“For the first time in a generation, people will know that it pays to save, and that whatever they put aside won’t be eroded by means-testing when they retire.”

Labour said 84,000 people in Wales were receiving a pension higher than the level proposed by the Government.

People entitled to such pensions stand to lose at least £10-a-week, said shadow Welsh secretary Owen Smith, adding:

“We will need look very carefully at these proposals as there is a risk that thousands of hard-working people across Wales who have paid contributions throughout their life will lose out,” he said.

Click here for questions and answers about the new pension scheme.

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