City pensioners positive about budget
RETIRED doctors Nuala and Conal Gallagher both live on a state pension, plus their NHS pensions for having worked as GPs during their careers.
Both in their eighties, the couple say their first impressions were positive. Dr Nuala Gallagher said the most relevant aspects of yesterday’s Budget for them were the increased support for pensioners through pension credits and winter fuel payments.
As the Cressington Park couple are over 80, they stand to receive an extra £400 towards fuel bills.
Tony Reddin, accountant with global accountancy firm Grant Thornton, said in his opinion the couple stood to be slightly better off as a result of the Chancellor’s measures, which, Mr Darling said, would see them entitled to an income of £132 a week.
Mr Reddin said: “As personal allowances and tax rates have been frozen, this couple's net income will be broadly neutral compared to last year.
“Some good news for them is the increase in the rate of state pension and pension credit entitlement, which will mean that they will be better off by about £200 per year.
“The extension of the winter fuel allowance for a further year will mean that this couple will once again be able to benefit from the £400 annual payment.
“The freezing of the Inheritance Tax threshold at £325,000 for the next four years will be a disappointment, but at least they will be able to take advantage of the transferable nil rate band meaning that the first £650,000 of their combined estate will be tax free.”
VERDICT: Better off





