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Yeah I agree - obviously look at the extremes and it seems really clear that it needs to be means tested; I think the issue is that to make that a meaningful saving the cut off is always low enough to catch quite a few people. Most people have a similar idea of what sounds like "well off" and hence we have loads and loads of things that kick in (or help that stops) at £100k or thereabouts. Not saying those earners are the most deserving of help but it doesn't feel like a well designed system if too many income thresholds line up
andyfallsoff-
clear that it needs to be means tested
I wonder if a faster/cheaper way would be to add whatever 0.xx% is required on to the higher band tax rates to remove the rebate.
Surely it's just updating the formula in HMRC's xls.
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it doesn't feel like a well designed system if too many income thresholds line up
Yeah - you get these odd situations where the marginal effective tax rate is extremely high (even >100% in some corner cases). It can create big disparities between single earner and double earner households with the same aggregate gross £.
hugo7
NickCJ
I was perhaps looking at the more extremes in energy consumption. Those renting affordable accommodation, trying to make ends meet vs high net worth. I appreciate there are always exceptions to the rule. This in part is why I prefer the grant as a blanket approach. Will now probably hit middle earners hard. All a bit shit really.