100 Years of State Pension

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100 Years of State Pension

• Norman Jemison
• National Pensions Convention

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Prior to 1908

• Working people in old age depended on
• Charity
• Parish relief
• Workhouse

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End of 18th Century

• Queen Victorias Britain was one of the
  wealthiest
• But milllions lived in poverty
• Most old people faced poverty

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Joseph Chamberlain MP

• In 1894 he said
• it is almost impossible for a large proportion
  of the poorer classes to make adequate provision
  against old age
• half of all men over 65 belonging to the
  working and poorer classes is compelled to have
  recourse to Parish Relief

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Charles Booth

• This was a way of ending the link between old age
  and pauperism
• Proposed that the Government should introduce a
  non-contributory pension of 5 shillings per week
  for all aged 65 and over

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Lord Rothschild

• 1896 a Treasury Committee chaired by Lord
  Rothschild was preoccupied with finding a pension
  scheme which would cost as little as possible.

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Francis Herbert Stead

• 1898 he initiated the Nationwide campaign for Old
  Age pensioners
• He was born in 1857 on Tyneside and had been
  affected by the poverty he had seen

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New Zealand leads the way

• Stead learn from William Pembert Reeves, that New
  Zealand had introduced a Governments
  non-contributory Old Age Pension of 7 shillings
  per week for all at 65 years of age.

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The 10 year campaign 1898-1908

• Conferences in support of the Old Age State
  Pension were held at
• Newcastle (Burt Hall)
• Leeds (St James Hall)
• Manchester (Co-operative Wholesale Society
  Buildings
• Bristol (Hannah More Hall)
• Glasgow (St Andrews Hall
• Birmingham (Municipal Technical School)

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Birmingham 25th March 1899

• Attended by Manchester Odd Fellows, Ancient Order
  of Foresters, Ancient Order of Buffaloes, Order
  of Rechabites, Order of Druids, trade unionists
  and other labour organisations, religious groups
  and friendly sociities
• It was a popular cause.

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National Committee of Organised Labour for
Promoting Old Age Pensions for All

• In January 1899 the National Committee was
  formed and began a national Campaign for a
  Universal, Non-contributory Old Age Pension at
  65.
• In Sept 1899 the Trade Union Congress supported a
  demand for a pension of 5 shillings for all
  citizens over 60 year of age. This was taken up
  by the co-operative movement
• The National Pensions Committee called for
  organised religion to support and Congregational
  Union, Wesleyans, Baptists, Church of England and
  the Catholic Church all did.

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Chaplin Committee

• Government appointed a select committee chaired
  by Henry Chaplin
• This body concluded that it was practicable to
  create a system of Old Age Pension for the UK,
  they rejected compulsory contributions from
  earnings as it would defer the benefits

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Boer War

• Boer War 1899-1902 costing the country 250 m was
  used to delay the implementation
• National Pension Committee stepped up campaign,
  with petition and defeats at elections

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National Pensions Campaign

• In response to the government delay the committee
  organised petitions, with 799,750 names
• Organised at election to ensure defeat of
  candidates not supporting
• Approached both the Cabinet and Leaders of the
  Opposition
• Stirred public pressure

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1908 Pensions Act

• From 1st Jan 1909 those reaching 70 years of age
  if qualified under means-testing could collect 5
  shillings by week. Lord George
• On 31st March 1909, 647,494 received the Pension,
  582,565 the full five shillings
• This was raised by two shillings and 6 pence to
  keep up with the cost of living

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1919 Review of Pension

• At the first world war it was reviewed
• Pension was increased to 10 shillings
• Means testing was abolished

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State pension 1908

• Non-contributory pension
• Payable to men and women at 70
• 5 shillings per week 25 of average earnings
• Means-tested and based on character

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State pension 2008

• Contributory pension
• Currently paid to men at 65 and women at 60
• (payable to men and women at 65 in 2024 and
  rising to 68 by 2044)
• 90.70 per week about 15 of average earnings
• The pension is not means-tested but associate
  benefits pension credit are

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Problems

• The presence of means-testing over 2 million
  older people are entitled to Pension Credit of
  129.05 (which is below the Official Poverty
  Level of 151 per week)
• 2007 saw an extra 300,000 pensioners fall below
  the official poverty level

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Poverty

• 1 in 4 of todays 11 million pensioners live
  below the poverty line
• Majority women
• In 1891 there were 1.3m people classed as paupers
  of which 31 were over 60 years of age
• 62 of pensioners couples have less than 10,000.
  
• 50 of single pensioners live on 6,000 or less
• Majority with company pensions receive less than
  3,000 from them

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The issue

• Government has said it will restore the link
  between earnings and pension in 2012 3 million
  of todays pensioners will have died by then!
• The State Pension of 90.70 is the least generous
  in Europe
• If the link between earnings and pensions not
  been broken in 1988 the pension would have been
  143.15 now.
• The National Insurance Fund should have a surplus
  of 46 billion, growing to 114 billion by 2012
  but government uses the money to fund other
  expenditures instead of the state pension

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The Campaign continues

• What needs to be done?
• NPC has launched Early Day Motion 658 on the
  Pension Centenary, currently supported by 120
  MPs. It calls for the Basic State Pension to be
  raised above the Official Poverty Level (151)
• Use the surplus in the NI fund to fund this
  increase but also
• Abolish the upper earnings limit (raising
  6billion a year)
• Abolish higher rate tax relief on private
  pensions saving 14 billion per year

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What do you have to do?

• Write to your MP asking them to sign EDM 658
• Get your organisation to affiliate or/and donate
  to the NPCs Campaign Fighting Fund
• Sing up online to the Campaign www.pension100.co.u
  k
• Come to Lobby of Parliament 22nd Oct 08 Decent
  State Pensions for All Generations

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100 Years on, the campaign continues

• It is completely unacceptable that in the
  Centenary Year of the first ever State Pension
  million of older people are still living in
  poverty.
• If a society is judged by how it treats its older
  citizens, we are seriously failing
• Pensioners dont want charity they have earned
  the right to a decent State Pension
• It has to be above the poverty level and rise
  each year in line with earnings
• Older people both now and in the future
  deserve better.

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Now and in the Future