Spring Budget 2023

Freefaller said:
The growing skills gaps is the government's fault for not focussing on education, and for doing a referendum on the EU. They've well and truly shot themselves in the foot. Yes we're living longer, but as soon as I can afford to not work I certainly plan on ramping down the work I do. It's completely clear why they're doing it, but if I were a close-to-retirement or retired specialist, that had more than enough in my pot, I most certainly a) wouldn't be in the UK and b) unless I felt morally obligated I don't see why I'd go back to work if I didn't need to. That said I would possibly do a little bit of a week or so a month of advisory roles - but I don't think they'll get as many people back into work as they think they will.

However, what I would say, for those of you early in your careers, now is the time to plough what you can into your pension. I wish I had started earlier.
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I'm paying as much into my pension as I can feasibly manage (20% combined contribution between me and my employer), I can't go any higher as I need to plough money into my mortgage too - especially with the increasing interest rates. It's a fine balance between disposable income now and disposable income at retirement. We live frugally as it is already

I agree with your conclusions too (on all points) but its clear what the Government are trying to achieve with increasing the LTA and introducing childcare funding for 1 and 2 year olds. They are very worried about the pending skills gap / lack of workforce.
 
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ci_newman said:
Because it's designed to get parents back into work that otherwise couldn't afford to - it's not intended to help parents who are already in work.
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Oh, I know the reson behind it, but I've also heard the resentment from families who aren't entitled to the help.

Why shouldn't the parents in work get the help? We seem to have some of the most expensive childcare in Europe, 15K average for a full time 2 y/o lol. I had a quick look around the other day and from what I could see :

Germany : Costs between 70 - 150 Euro per MONTH

France : Cost Scales with your salary, but starts at around 50 Euro per month

Spain : Looked between 150 - 400 Euro per month.

The thing that gets me about all this as well, is as you've said all they are doing this for is to get people back to work - not for the benefit of the children! :cry:
Other countries definitely value the investment in the children, in all areas not just in Nursery places, more than this Country
 
ci_newman said:
The pre-budget comments indicate that the funding for 1 and 2 year olds will only be available to those receiving UC, whereas the current funding is for all children aged 3 and above (unless as a family you earn too much).
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So if those on UC get a job, or a higher paying job they will lose it? So work really won't pay.
 
ci_newman said:
Because it's designed to get parents back into work that otherwise couldn't afford to - it's not intended to help parents who are already in work.
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There is literally no point in it though. Unversal credit for a single mum is £579 a month plus all the extra things they get. Working 5 hours a day on minimum wage is going to give you around a grand a month if you can find a job that is flexible around you. It seems already that parents on UC can already claim back 85% on childcare costs anyway.

For middle earners who are not entitled to UC are paying astronomical amounts for childcare that working is pretty pointless for them. 10 Grand a year on child cost is the norm around here. On 40k P.A half your disposable income has been wiped out on childcare, gives you 1500 a month to live off without government support.
 
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200sols said:
So if those on UC get a job, or a higher paying job they will lose it? So work really won't pay.
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Yea, there seems to be a massive benefit trap already with people only working 16 hours, getting UC and all the benefits that entails to losing it all if they increased hours.

I thought UC was supposed to fix that with it's tapering off, but it doesn't seem like it has. Though tbh, I know a lot more about Nursery funding side of things than I do about the benefit system and that's just from some articles I've been reading.
 
adam cool dude said:
There is literally no point in it though. Unversal credit for a single mum is £579 a month plus all the extra things they get. Working 5 hours a day on minimum wage is going to give you around a grand a month if you can find a job that is flexible around you. It seems already that parents on UC can already claim back 85% on childcare costs anyway.

For middle earners who are not entitled to UC are paying astronomical amounts for childcare that working is pretty pointless for them. 10 Grand a year on child cost is the norm around here for a year. On 40k P.A half your disposable income has been wiped out on childcare, gives you 1500 is a month to live off without government support.
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I agree with you, for what it's worth. I'm just saying that this budget isn't going to be the super pill that parents are hoping for to deal with childcare costs.
 
Freefaller said:
The growing skills gaps is the government's fault for not focussing on education, and for doing a referendum on the EU. They've well and truly shot themselves in the foot. Yes we're living longer, but as soon as I can afford to not work I certainly plan on ramping down the work I do. It's completely clear why they're doing it, but if I were a close-to-retirement or retired specialist, that had more than enough in my pot, I most certainly a) wouldn't be in the UK and b) unless I felt morally obligated I don't see why I'd go back to work if I didn't need to. That said I would possibly do a little bit of a week or so a month of advisory roles - but I don't think they'll get as many people back into work as they think they will.

However, what I would say, for those of you early in your careers, now is the time to plough what you can into your pension. I wish I had started earlier.
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That's way too long term of a problem to fix.
Better for a short time fix that also happens to benefit your historical voter base.
 
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ci_newman said:
I'm paying as much into my pension as I can feasibly manage (20% combined contribution between me and my employer), I can't go any higher as I need to plough money into my mortgage too - especially with the increasing interest rates. It's a fine balance between disposable income now and disposable income at retirement. We live frugally as it is already

I agree with your conclusions too (on all points) but its clear what the Government are trying to achieve with increasing the LTA and introducing childcare funding for 1 and 2 year olds. They are very worried about the pending skills gap / lack of workforce.
Click to expand...

Ditto. I'm lucky my employer gives 12%. I'm putting in 11% at the moment, so combined 23%. We're on a fixed rate until 2026 so I don't have to worry too much about that for now. It would be nice to free up a few hundred quid a month, but I've sort of got used to earning "less" through pension contributions and ultimately it's going to help me in the future... it's hard not to focus on the here and now.

I agree with your summation - but if they were really worried they'd make it easier for people to come into this country to support the economy, but then I guess they want to upskill the British people - I hope people do step up, we need desperately need those skills (especially in the STEM subjects). However we also need those lower skilled roles like fruit/veg pickers - that said, I've seen an increasing amount of robotics and automation now for crop harvesting so even those roles will start to diminish.
 
Eurofighter said:
we already have one of the highest tobacco tax in the world, what are you looking to gain from this?
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dLockers said:
Tax smokers till they're homeless or get a grip. Simples.
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200sols said:
Its no secret cigarette smokers are heavily skewed to the poor end of the socioeconomic scale.
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I guess increasing tobacco tax, which disproportionately affects the poorer, is a way to recover some of the tax being lost from increasing pension lifetime allowance for the wealthier...

Can open... Worms everywhere :eek:
 
jpaul said:
the £69/£400 is gone, for squeezed middle, so spring reduction won't be seen by many, on the SVR& £2.5K EPG


ft nailed one of them today


The lack of success in stimulating economic growth since 2007 has been especially notable. If the UK’s gross domestic product per person had grown as rapidly in the 15 years after 2007 as it did in the 27 years since 1980, every person in the UK would be £10,600 or 31 per cent a year better off in real terms versus the £33,700 of GDP per head that the UK achieved in 2022, according to IMF data.
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Sick man of Europe.
 
Richie said:
I guess increasing tobacco tax, which disproportionately affects the poorer, is a way to recover some of the tax being lost from increasing pension lifetime allowance for the wealthier...

Can open... Worms everywhere :eek:
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Bonus though, those rich consultants back in work will be treating those poor smokers drowning in their own lungs.
 
200sols said:
Bonus though, those rich consultants back in work will be treating those poor smokers drowning in their own lungs.
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We should be thanking them.

They pay more in tax than they take out in health service use and those that give up live longer and use more.

They subsidise us non smokers.
 
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