The UK gov'ts response to our e-petition...
Jan 3rd 2008 | 8:20 am
#1
Thread Starter
BE Forum Addict
Joined: Dec 2005
Posts: 1,238
From: Colorado Springs
The UK gov'ts response to our e-petition...
"Thank you for your e-petition about the annual uprating of State Pensions payable to British pensioners residing abroad.
As the petition correctly points out, State Pensions are paid out of the National Insurance Fund (NIF) rather than general taxation. The petition argues that the Government should use the current surplus in the Fund to meet the cost of uprating the State Pensions of all recipients living overseas.
The NIF is maintained under the control and management of Her Majesty's Revenue and Customs. It is run on a "pay-as-you-go" basis; current income, mainly from national insurance contributions, pays for current expenditure mostly on Contributory Benefits. There is a requirement for the NIF to have sufficient funds, together with a working balance, to meet benefits expenditure. The uses to which the NIF can be put are clearly specified in legislation, with the majority spent on state pensions.
National insurance contributions and the associated social security benefits operate within the Government's fiscal rules designed to ensure sound public finances. When there is a surplus it is invested. Without this the Government would need to raise the equivalent through other means to fund public services. The NIF surplus is not therefore an extra resource available to spend.
To fund annual pension increases for all recipients in countries where upratings are not currently payable, we would have to raise additional income from UK taxpayers. Our priority, given the limited resources available, is to ensure that pensioners resident in the UK continue to see an increase in their living standards commensurate with the growth of the economy as a whole."
Quoted from http://www.pm.gov.uk/output/Page14125.asp
The way i read this is "Yes, we have a surplus in the funds that are paid exactly for this purpose, but we spend it on other things so the pensions system will stay as it is, completely unfair and discriminatory based on the country you are living in, thankyou for your time"....
gotta love the UK government, eh?
As the petition correctly points out, State Pensions are paid out of the National Insurance Fund (NIF) rather than general taxation. The petition argues that the Government should use the current surplus in the Fund to meet the cost of uprating the State Pensions of all recipients living overseas.
The NIF is maintained under the control and management of Her Majesty's Revenue and Customs. It is run on a "pay-as-you-go" basis; current income, mainly from national insurance contributions, pays for current expenditure mostly on Contributory Benefits. There is a requirement for the NIF to have sufficient funds, together with a working balance, to meet benefits expenditure. The uses to which the NIF can be put are clearly specified in legislation, with the majority spent on state pensions.
National insurance contributions and the associated social security benefits operate within the Government's fiscal rules designed to ensure sound public finances. When there is a surplus it is invested. Without this the Government would need to raise the equivalent through other means to fund public services. The NIF surplus is not therefore an extra resource available to spend.
To fund annual pension increases for all recipients in countries where upratings are not currently payable, we would have to raise additional income from UK taxpayers. Our priority, given the limited resources available, is to ensure that pensioners resident in the UK continue to see an increase in their living standards commensurate with the growth of the economy as a whole."
Quoted from http://www.pm.gov.uk/output/Page14125.asp
The way i read this is "Yes, we have a surplus in the funds that are paid exactly for this purpose, but we spend it on other things so the pensions system will stay as it is, completely unfair and discriminatory based on the country you are living in, thankyou for your time"....
gotta love the UK government, eh?
Jan 3rd 2008 | 8:45 am
#2
Lost in BE Cyberspace
Joined: Sep 2004
Posts: 6,713
From: Windsor, ON; Chicago, IL
Re: The UK gov'ts response to our e-petition...
See http://britishexpats.com/forum/showthread.php?t=503283 , duplicate thread closed.
