- Jun 20, 2021
- 3,355
In one sense it is, but on the other hand, one of the reasons people have been paying National insurance for 70 years is that theoretically, it has been paying towards their pensions. Those who do not pay enough NI over their working life, get a reduced pension.Surely means testing the pension is actually a progressive measure?
Any pensioners struggling are presumably not those who would not qualify for a means-tested pension?
IMO something like this needed but I never thought the Tories would want to put their name to it. Wealthy pensioners aren't their usual target when it comes to cutting spending.
So, strictly speaking the state pension is not a benefit, but a reward for working for 35+ years and paying tax to the government.
Of course if NI is abolished, then in future you could argue that pensions become a benefit for those who haven't paid NI and could be means tested, but I don't think you can do that for existing pensioners. Unfortunately, that would lead to a two tier system.