Skip to content
The famous red box contains the Budget speech. It is held up by the chancellor before the speech is read out in parliament
Chancellor's red box
Update by news editor   22-03-2012

Bad news for grannies

Be ready to work until you are nearly 80, young people warned

Today's young people should prepare themselves for a very, very long working life.

While older people can retire at the age of 65 nowadays, in the future we will all be working until we are in our seventies.

And babies born today will probably still be slogging away when they are in their eighties!

That's if they ever manage to get a job in the first place. Youth unemployment in Scotland is at a record high, with more than 100,000 young people out of work.

The government has announced plans to keep raising the age at which people can start getting a state pension because we are all living longer.

In Scotland, the number of people aged 65 and over is set to go up by half a million in the next 23 years.

Leaders say the country won't be able to afford for all these older people to stop working and start receiving a pension when they hit 65, so they are going to have to keep working for longer.

 

Click here to try our budget quiz.

Lesson ideas and suggestions

Read and discuss lesson ideas on our Facebook page

Join our mailing list (Glow login required)

Bad news for grannies

Anger at new 'granny tax' as critics call spending plans 'millionaire's Budget'

Five million pensioners in the UK, including 500,000 Scots, will lose more than £300 a year after yesterday's Budget.

Over-65s with an income of between £10,000 and £24,000 will eventually have to shell out the same rates as all other taxpayers.

Income for people this age could come from things such as private pensions, or earnings from work or savings.

Until now, many older people were let off paying the same amount as younger taxpayers, under a rule aiming to help pensioners that was introduced in 1925 by Winston Churchill.

From next year, the amount a pensioner can receive before paying tax will be frozen at £10,500 a year for over-65s and £10,660 a year for over-75s.

The limit used to rise every year to keep up with inflation, so that the real value of the amount remained the same.

"What George Osborne has done is absolutely disgraceful," said Nell McFadden, aged 84, from Gourock.

"I think he is stealing from pensioners and I am absolutely disgusted."

But Mr Osborne said that no pensioners will be losing cash, and that the state pension is going to go up by more than £5 a week.

Meanwhile, around 300,000 of the UK's top earners will pay less tax under the new rules.

People who are paid £150,000 and over each year are charged 50p in tax for every pound they earn. But from next year, that will be reduced to 45p.

The chancellor George Osborne defended the tax cut saying that the extra 5p didn't raise much money for the government and just encouraged tax avoidance, thus harming the economy.

He claimed that the rich would pay five times more tax as a result of all the measures he announced yesterday, including an increase in the amount payable for the sale of a house worth over £2 million.

But the leader of the Scottish Labour Party, Johann Lamont, said the Budget was "riddled with unfairness" which marked the end of the claim "we're all in this together."

She said: "Scots will be furious to see a gang of cabinet millionaires giving tax cuts to millionaires."

 

Click here to try our budget quiz.

Lesson ideas and suggestions

Read and discuss lesson ideas on our Facebook page

Join our mailing list (Glow login required)

read original story here

Experiences & Outcomes

  • I can use evidence selectively to research current social, political or economic issues. SOC 2-15a
  • I can use my knowledge of current social, political or economic issues to interpret evidence and present an informed view. SOC 3-15a
  • I can evaluate conflicting sources of evidence to sustain a line of argument. SOC 4-15a
  • I can explain how the needs of a group in my local community are supported. SOC 2-16a
  • I can explain why a group I have identified might experience inequality and can suggest ways in which this inequality might be addressed. SOC 3-16a
  • I can contribute to a discussion on the extent to which people’s needs should be met by the state or the individual. SOC 4-16a