When you become a pensioner you do not suddenly become a lesser breed.
You still need to eat, buy clothes, keep in contact with friends and keep warm and dry.
You would still like to have a holiday, run a car, keep your house in good order and even be able to afford the odd meal out. The "powers-that-be" have recognised for years that the state pension is insufficient and have created many benefits to ensure the poorest can survive.
However, those pensioners who, when they worked, were able to provide for their retirement through an occupational pension will have planned according to the tax rules in place at the time.
They will have assumed, naively perhaps, that the rates system which cost almost nothing (about three per cent of income) would still be in place.
Unfortunately, some misguided politician decided to completely change the collection of local tax. What used to be a very small payment which covered council services, water and sewerage, with the government paying from income tax the bulk of local funding, changed to a large payment which takes no account of ability to pay it.
So the person who planned to have an occupational pension to help maintain a reasonable standard of life now finds that his or her rates, that were taking about three per cent of their income, have been replaced by a council tax which will take at least 20 per cent and the water/sewerage charge a further eight per cent.
What are pensioners supposed to do? Cut back on essentials? Sell their homes they have spent years paying for?
Watch out, Government. There could be a queue of pensioners in the courts.
P Southon,
Main Street,
Thorganby, York.
Updated: 09:57 Friday, February 20, 2004
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