Government is out of touch on pensions...

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I see that David Cameron is making a fightback against accusations of being out of touch etc. Obviously the Budget has resulted in many reasons for these accusations.

I apologise for focusing my attention on pensioners in this connection but I do think that he has either been badly briefed or is just unaware of the various procedures affecting pensions and allowances. First, as I have mentioned previously, he claimed that the recent increase in the state pension was attributable to the Government’s budget, when in fact it was due to the annual adjustment based on the cost of living (CPI) as at September 30 the previous year.

I called this a ‘con’ and I had no alternative but to agree with Ed Miliband (ugh) when he used the same word at PM’s Question Time!

During the period of the recent debate of the so called ‘Granny Tax’ Cameron said that many pensioners’ incomes were higher than working people, and this had to be controlled.

Well, firstly that is inevitable as many workers are on a very low wage, and pensioners with higher incomes have been contributing to their various pension schemes (e.g. state pension, company pensions etc. throughout their working lives.

But one fact that he has overlooked or ignored is that there already exists a controlling device, which reduces ones’ pension tax allowance by £1 for every £2 they exceed an income of £25,400 (the average wage, I believe) and lose the whole of their higher age allowance if their income exceeds £30,190 or £30,510 (for over 75s).

I therefore cannot see any justification for the double whammy of freezing the age allowances as at this year’s rate until the under 65s’ allowances catch up.

Harry Thompson,

Willow Drive