The more substantial challenge in policy terms is to provide a lifetime income for people in the new economy.
The universal pension was one of the most eye-catching recommendations of the second report of the Pension Commission in 2005. Crucially it was restricted to the over 75s, accompanied by a tough residence test – to prevent pension tourism – and linked to a steady increase in the retirement age. Lord Turner argued for a retirement age of 70.
It had also been debated among a group of Labour women MPs making the case for better pension provision for women. At that stage 84 per cent of working women did not qualify for a full state pension, because they lacked the NI contribution record, and few had occupational pensions, the backbone of UK pensions.
So it’s not a new idea. One of its biggest problems is that it breaks the link between what a person puts into society during their working life and what they get out during retirement. Not an easy argument, but people tend to think that if you work hard – either in paid employment or by caring for children or sick or elderly relatives – and contribute to society then your effort should be rewarded. To adjust for women’s lives, the Labour government cut the number of years needed to qualify for a pension and made it easier for women to buy back lost years and get their years of caring covered.
The universal pension does not allow for the pensioners’ widely diverging needs. People on the pension credit can get carers and disability premiums. Targeting – which the Liberal Democrats are wrong to dismiss as means testing – is the only way to match money to need.
Most of all, things have moved on. Seventy per cent of women now reaching retirement age are entitled to the full basic state pension, due to a combination of Labour’s pension changes, and women’s employment in the labour market. From 2025 that will rise to 90 percent of men and women.
Meanwhile there are new challenges coming from the recession. Research into the impact of the recession on families in my former Northampton constituency found profound changes in household working patterns, with women describing themselves as their family’s breadwinner and men’s hours being cut to part-time. Pensions policy needs to catch up with this, perhaps by allowing pooling of pension rights within households, similar to the arrangements for tax credits.
And for men and women working till 66 or beyond the challenge for the state will be to enable them to achieve a lifetime income that smoothes out peaks and troughs in earning power and maintains their quality of life.
One thing is certain: these are swing voters in the swing seats. They were hit hard by the abolition of the 10p tax rate, and punished us accordingly. We need to have policies that resonate with them for next time round – and that are more sustainable than a £140 flat rate pension.
there’s a man (well,a Tory ) who writes a blog called tory bear (mayaswellbebare) Harry Cole,he says 23.10.10 “the more scummy ,stalkerish elements of the otherwise maturing left-wing blogsphere………………….not a basement dweller (!!) in sight.Though its that sort of blogger keeping up the attacks” “online nutters ” Well Mr. Cole I am advising people to look at the Telegraph blog readers comments for Tory values and attacks! the worst I saw was in April this year “our hospitals are dirty because foreign workers wipe their arse with their hand ” They printed that ! that would worry the elderly if it were true don’t you think ?
and ere,there must be sumfink positive about this Europe milarky eh? Didn’t that there European Commission grant aid the research which led to the recent breakthrough in the development of Quantum Computing ,you see that’s a pretty big thing and as usual we dun it ! Well Manchester /Edinburgh Universities Gawd blessem.We might more economically hold military capabilities in common with other European Countries ,search and source energy ,etc . We could hear more about the point ; objectives which may well deliver up very very large returns, oh…which might be SHARED by everyone oh , I see. Pass the biscuits .
‘n’pparently that Cameron thinks Britain is one big biscuit ! yeah,he’s gonna start breaking bits off ‘n’ floggin’ em ! yeah, startin’ with Dover. Vera Lynne , gawdblesser thinks we should all buy it,I’m gonna send a few bob.
SNAP crumble crumble and there goes the 370,500 acres of forest of course.
Sniff sniff , squeek squeek squeek .
tweet tweet tweet,have you seen my tree?
“growl growl growl sell our forests and I’ll tear your head off growwwl growwwl …. here piggy piggy “
and the mag.P.I. says that The Forestry Commission sold one forest for 60k.but then the new owners got 55k. grant from English Woodland (grow/cut timber fund) So if they are giving forests away,can I have some ?
sorry,the mag.P.E.
“wot about”? “that if they sell the forests,it’s not just different kinds of animals that won’t like it”!
peewitpeewotpeewitpeewotpee………cor! look at that mate ,they’re gonna leave us one tree ,think it’ll be enough ?
“wot time dyou fink Ratty will get here ?” “dunno” “yeah,spose its a long way from Downing Street?” “dunno” “dyou fink they’ll notice we bugged the cat?” “dunno” “turn the sound up”.
pensions lads it’s about pensions
if anyone lives that long.
yipeeeeee ! hooraayyyy ! hubba ! hubbba ! hubbbba ! now we can see da trees for da wood hee hee .
anyway ,what do you mean ” LADS ” I’m a pensioner! do fink we got no sense of humour ? we got to keep warm somehow ! I get 311 squids a munf so obviously I still work ,then I may have say about a week off ,before I CROAK!
So Spain swings to the right,Europe could have just delivered itslef up to the Nazi’s I suppose,would have saved time wouldn’t it. URGENTLY REQUIRED :New model ,path, paradigm, plan proposition, experiment,oppositional demonstrative,from the Left please – ASAP !! People must surely be made to see that this highly dangerous time must not deliver us all once again into the hands of the grasping few because this is exactly how we got into this position in the first place.How come no one mentions how little Tax was paid in Greece for so long for example etc.