Gov't defence of pension credit proves it's a 40% tax - Bee

In his blog on the Department for Work and Pensions (DWP) website last Monday, Purnell, the minister for pensions reform, claimed reports means-testing acted as at least a 40% tax on savings were wrong. To illustrate this he used, in both his blog and a speech to Cicero’s financial services summit, the example of a person receiving a £100 per week state pension, with savings providing an extra £20 a week in income, and claimed the individual would receive on top of this £15.50 from Pension Credit. As a result he says “it is simply untrue to describe Pensions Credit as a 40% tax” and sugge...