Benefits - and effects of rising fuel costs.


J

James

A hypothetical question.

As fuel costs rise (i.e the Wholesale gas prices have jumped by 75% over the
past year, according to British Gas), with british gas about to impose a 25%
rise on gas prices), have we not got to the stage where benefit need to be
increases as a result to finance these essential costs?
 
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M

Martin Davies

James said:
A hypothetical question.

As fuel costs rise (i.e the Wholesale gas prices have jumped by 75%
over the past year, according to British Gas), with british gas about
to impose a 25% rise on gas prices), have we not got to the stage
where benefit need to be increases as a result to finance these
essential costs?
Yes.
Though benefit increases are based on the inflation rate for a particular
month.

So only those things affecting inflation will impact them.

Perhaps now would be a good time to look at such things as the winter fuel
allowance, which is only given to a portion of the population (and doesn't
care how high their income is). And which has stayed the same rate for a
while.


Martin <><
 
M

mogga

Yes.
Though benefit increases are based on the inflation rate for a particular
month.

So only those things affecting inflation will impact them.

Perhaps now would be a good time to look at such things as the winter fuel
allowance, which is only given to a portion of the population (and doesn't
care how high their income is). And which has stayed the same rate for a
while.


Martin <><

The government cleverly remove things which go up too much from the
inflation calculation.
I belieev the TV licence has been removed as its going up too much to
keep a low inflation figure.
 
M

Martin Davies

mogga said:
The government cleverly remove things which go up too much from the
inflation calculation.
I belieev the TV licence has been removed as its going up too much to
keep a low inflation figure.
Though low inflation helps keep costs down for the consumer too.
For us benefit claimants, the important things like increases in costs of
food, gas/lecky, water and to an extent travel costs.
There are grants and freebies offered - such as loft or cavity insulation to
help keep costs down. Don't know yet what impact cavity insulation will make
with my house, but in last 6 months my gas/lecky bill was over a grand.

Martin <><
 
D

Dave xxxx

mogga said:
inflation calculation.
I belieev the TV licence has been removed as its going up too much
to
keep a low inflation figure.
Here is last years basket
http://www.statistics.gov.uk/articles/nojournal/CPI&RPI_basket_2005.pdf

here are year and month by month results

http://www.statistics.gov.uk/downloads/theme_economy/RP04.pdf

What ever the RPI is in September some benefits go up by that amount
the following April

Not all sometimes like parts of Tax Credits they do not go up, or as
has now some parts go up by more

disabled child elements of childrens tax credits went up about 6% year
one
but the basic amount stayed the same, so allowing for inflation that
went down this is also known as fiscal drag
 
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M

mogga

Though low inflation helps keep costs down for the consumer too.
For us benefit claimants, the important things like increases in costs of
food, gas/lecky, water and to an extent travel costs.
There are grants and freebies offered - such as loft or cavity insulation to
help keep costs down. Don't know yet what impact cavity insulation will make
with my house, but in last 6 months my gas/lecky bill was over a grand.

Martin <><
Inflation should imo measure the price inscreas e on the thigns you've
stated. They've all gone up hugely yet we still have to pay them from
benefits or wages which haven't increased by anywhere near the same
amount.

Even childcare has gone up over 25% in the last 5 years according to
the news.

Did you get your loft done too? I want underfloor insulation but we're
still working on how to do it best (15% of heat escapes through
floors but no major companies do it nor grants offered for it, and the
energy saviong trust couldn't find a leaflet on it for me)
 
M

Martin Davies

mogga said:
Inflation should imo measure the price inscreas e on the thigns you've
stated. They've all gone up hugely yet we still have to pay them from
benefits or wages which haven't increased by anywhere near the same
amount.
Wages tend to hover round the inflation rate. Some get more, some get less,
some get nothing.

Even childcare has gone up over 25% in the last 5 years according to
the news.
Though thats not relevant to most benefit claimants, its very relevant to
wagearners.
Some government help has been given in the past few years, though won't
cover the full cost.
Did you get your loft done too?
No, we were offered the choice of cavity or loft for free, not both. Could
pay for the other.
The loft has over a hundred boxes in and is partly floored - lot of hassle
insulating it as we'd have to pay someone to shift everything first. Wife
and I both too disabled to get in and out of the loft even.
Judging by how long snow stays on the roof, loft insulation isn't
desperately needed up there. The boxes help keep heat in to a degree (some
of the boxes contain materials as packaging for other things).

I want underfloor insulation but we're
still working on how to do it best (15% of heat escapes through
floors but no major companies do it nor grants offered for it, and the
energy saviong trust couldn't find a leaflet on it for me)
Decent carpet and underlay is the best many of us can do on the cheap. There
is enormous variation between houses there though.

Martin <><
 
M

Martin Davies

Dave said:
Here is last years basket
http://www.statistics.gov.uk/articles/nojournal/CPI&RPI_basket_2005.pdf

here are year and month by month results

http://www.statistics.gov.uk/downloads/theme_economy/RP04.pdf

What ever the RPI is in September some benefits go up by that amount
the following April

Not all sometimes like parts of Tax Credits they do not go up, or as
has now some parts go up by more

disabled child elements of childrens tax credits went up about 6% year
one
but the basic amount stayed the same, so allowing for inflation that
went down this is also known as fiscal drag
Certain things mentioned in the budget change by more or less than inflation
amount.

Martin <><
 
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A

anthonyberet

James said:
A hypothetical question.

As fuel costs rise (i.e the Wholesale gas prices have jumped by 75% over the
past year, according to British Gas), with british gas about to impose a 25%
rise on gas prices), have we not got to the stage where benefit need to be
increases as a result to finance these essential costs?
The retail price index is taking into account in the annual calculation
of applicable amounts. - Although one could be forgiven for not noticing
this.
 

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