I wonder if they will also remove the 25 pence for the over eighties, that must cost the earth to administer. I also wonder if I will live long enough to appreciate a rise? In the present economic climate I doubt it.
It would certainly come in handy. But where is the catch. They usually give you something with one hand and take back more with the other. I certainly cannot see it taking affect within the next 5 years.
Those of us prudent or lucky enough to have a private pension as well, will be taxed on the increase at 20 - 40% depending on your total income, so a lot will go back to the revenue anyway.I suspect those less fortunate who get pension credit and housing and council tax help will find these last two will be reduced in line with the increase. Together with the admin savings in not means testing, I suspect the revenue will make a profit!!As you say: "They usually give you something with one hand and take back more with the other."
I actually paid mine from when I left school at the tender age of 14 until I retired at 65. Over 50 years. By the way income tax itself was set at about 33% for a lot of those years if I remember correctly, I am talking about the immediate post war years. (No Brumas, not the Boer war).
Whether or not you qualify for a state pension (which may be set at £140 per week per pensioner) will now depend on the amount of time you've been a British citizen or resident, not the number of years you've paid National Insurance. It's all changing.....