THE GENERAL ELECTION AND THE ALLIANCE - PUTTING THE CASES FOR DECENT PUBLIC SECTOR PENSIONS & FAIRNESS FOR OLDER PEOPLE
The General Election is Coming!
The next General Election must be held by 03 June 2010, at the latest. The first priorities of the Alliance over the next few months are to influence all those Prospective Parliamentary Candidates (PPCs) who could be part of the new intake of MPs and to ensure that, whichever Party or Parties [a hung Parliament?] make up the next Government, policies favourable to pensioners and older people will find their way into legislation.
Over the next few months in the run-up to the General Election, the Alliance will, in effect be conducting two parallel campaigns with fellow and like-minded organisations and will be seeking the crucial support of members, Groups and Branches in putting over our messages to and PPCs and the local media:
- With the Public Service Pensioners' Council(PSPC), whose affiliates represent the broad range of public sector pensioners, from retired military to retired teachers and nurses, the Alliance will be promoting the Defence of Public Sector Pensions
- With our colleagues in UNITE, the National Federation of Royal Mail & BT Pensioners, the Alliance will be seeking fair treatment for pensioners and older people under the banner of the Call to Action campaign
During the course of November 2009, the General Secretary and Deputy General Secretary attended a round of Regional Meetings, to which all Groups and Branches were invited to send representatives, and provided Group and Branch Officers with briefings and material on how the two General Election campaigns could be promoted locally with PPCs and the local media.
Whilst all members are encouraged to contact their Group and Branch Officers, who will be more than pleased to provide information on how local campaign work can be supported, this article sets out a summarised overview of the principal dates, activities and events associated with the two campaigns.
Defence of Public Sector Pensions
In January 2010, the Alliance and the PSPC will be sending a letter and a briefing to the PPCs of all the major political parties, calling on their support for the protection of accrued benefits for existing public sector pensioners and for the maintenance of decent defined benefit schemes for all working public servants. All PPCs will be advised that the local organisations of the PSPC affiliates and the Alliance will be contacting them directly to discuss these objectives further. Members will be asked to support their local Groups by lobbying and writing to the local PPCs on these issues. All these activities will be followed up in early March 2010 with a Manifesto Conference organised by the PSPC, at which the leading spokespersons on Pensions from the Labour, Conservative and Liberal Democrat Parties will be questioned on their commitments on a range of pensions issues by leading representatives of PSPC affiliates and the Alliance.
Call to Action
The Alliance and UNITE will launch their Call to Action campaign at a Parliamentary Reception on Monday 1 February 2010, to be hosted by the Shadow Pensions Minister for the Conservative Party, Nigel Waterson MP, and to be addressed by the Liberal Democrat Pensions Spokesperson, Steve Webb MP, and a current Labour Party Minister from the DWP. After the launch, all PPCs, as well as the local Groups and Branches of the Alliance and UNITE, will receive a copy of the Call to Action booklet, which calls on all PPCs to support fair treatment for pensioners & older people in the critical areas, summarised below:
- Pensions - the introduction of phased increases in the State Retirement Pension to reduce means-testing and to lift pensioners above the official poverty threshold
- Health & Social Care - the establishment of a National Care Service focused on maintaining people's independence, supporting carers and financed fairly
- Transport - decent affordable public transport, with the concessionary bus pass to be used in place of the Senior Rail Card
- Social Exclusion - provision of the means so that older people are able to access services and play a full part in their local communities
- Energy - the elimination of fuel poverty and the proper regulation of energy tariffs
- Crime - actions to address crime and the fear of crime, so that older people are able to enjoy secure and peaceful retirements
Local Groups and Branches of the Alliance and UNITE will be working together to arrange meetings with the PPCs standing in their areas to discuss these issues and members can greatly assist that work by lobbying and writing to their PPCs on the important issues covered by the Call to Action campaign.
Unmissable Opportunity
With all political pundits predicting a close-run outcome, fluidity in the opinion polls and 50% of those likely to vote being over 55, the build-up to the General Election presents the Alliance with what really is an unmissable opportunity to engage with all those who are likely to make the key decisions in the future that will affect all of our members' interests. Alliance HQ will be providing Groups and Branches with drafts of letters and press releases to be used locally, so members wishing to participate will be able to use those materials when contacting their PPCs and local newspapers. Here is a model letter on public sector pensions which members can use when writing to candidates.
So, with the means and the opportunities available, why not add your support to these important campaigns?
ACCRUED PENSION ENTITLEMENTS
The courts have ruled that occupational pensions are deferred salary and, therefore, are protected by contract.
Protocol 1, Article 1 of the European Convention of Human Rights (incorporated into the Human Rights Act 1998) says:-
"Every natural or legal person is entitled to the peaceful enjoyment of his possessions. No one shall be deprived of his possessions except in the public interest and subject to the conditions provided for by law and by the general principles of international law.
The preceding provisions shall not, however, in any way impair the right of a State to enforce such laws as it deems necessary to control the use of property in accordance with the general interest or to secure the payment of taxes or other contributions or penalties."
The courts have ruled that pensions are "possessions" and, therefore, enjoy the protection of the Act. This applies both to pensions already in payment and to pension entitlements already accrued but not yet in payment.
The major political parties have made the following commitments:
Conservative Party (Theresa May 23 June 2009 to CBI Pensions Conference)
"And one thing on which we are absolutely clear is that accrued benefits would be protected."
On 10 September 2009 Philip Hammond repeated the commitment in similar terms.
Liberal Democrats (Nick Clegg 23 July 2009 A Fresh Start For Britain)
Public Sector Pensions. "We will honour all commitments which have already been made but examine ways to keep the cost of of future pension obligations, particularly to the higher paid, under much tighter control."
Labour Party (Cabinet Office Briefing 31 July 2009 Q&A on Reform of the CSCS)
"We have recently completed a major reform of the Civil Service pension arrangements and have no plans for further changes."
INFLATION
In December 2009 the RPI was 2.4%, the RPIX (RPI excluding mortgage interest payments) was 3.8% and the CPI was 2.9%.
In November 2009 average earnings (excluding bonuses) rose by 1.1% and average earnings (including bonuses) rose by 0.7%.
CIVIL SERVICE PENSION FOR 2010
The September RPI determines the pension increase for the following April. Since the September 2009 RPI was minus 1.4%, there will be no Civil Service Pension increase in April 2010, nor will there be any reduction. Civil Service Pensions will stay at 06 April 2009 levels.
BASIC STATE PENSION FOR 2010
From 12 April 2010, the Basic State Pension will rise by 2.5%, from £95.25 to £97.65 for a single person and from £152.30 to £156.15 for a couple.
THE NATIONAL INSURANCE FUND
A recent report by the Government Actuary Department showed that at the end of 2007-2008 the National Insurance Fund was in surplus to the tune of £46 billion. By the end of 2012-2013 the surplus is expected to rise to £114 billion. In January 2008 the Secretary of State for Work and Pensions said, in a reply to a Parliamentary Question, that the cost of increasing the basic state pension to the pension credit guarantee level would be £21 billion in 2008-2009.
OUTSTANDING CS PENSION ISSUES
The five long-outstanding Civil Service pension issues are:
- Widow's/widower's pensions for life, irrespective of re-marriage or co-habitation;
- Pensions for widows/ widowers of post retirement marriages;
- Pre-1948 service to count in full;
- The National Insurance Modification to be scrapped; and
- Pay-pause victims to be recompensed.
We have been campaigning on these issues for many years but have not yet persuaded the politicians. We will continue to make representations on all these issues whenever the opportunity presents itself.
NPC's PENSIONERS' CHARTER
We are affiliated to the National Pensioners' Convention and we support their Pensioners' Charter in the following terms:-
" Every man and woman on reaching state pensionable age will have the right to:
- a basic state pension set above the official poverty level and linked to average male earnings,
- a warm and comfortable home,
- free health care treatment based on clinical need and an annual comprehensive health check,
- free community care and services to assist living at home,
- free long-term care,
- free nationwide travel on all public and local transport,
- free education, access to and participation in leisure and cultural activities,
- goods, services and benefits without age discrimination,
- active engagement and consultation on national and local issues affecting older citizens,
- advocacy, dignity, respect and fair treatment in all aspects of their lives,
As a first step towards establishing these rights we call on the government to implement the Pensioners' Manifesto."
THE STATE PENSION
One hundred years ago the first 'pensioners' collected their state pension at the post office. It was set at 5 shillings a week and paid to men and women on reaching 70 years of age. Even though the pension was means-tested, it was a tremendous advance in social policy and the first time that the state had recognised that it had a responsibility to look after those in old age.
But today, figures show that after a century of the state pension, pensioner poverty remains:
- In 2007/8 2.5 million pensioners were living below the official poverty line and 600,000 pensioners were living in severe poverty;
- About two thirds of those pensioners living in poverty are women. Up to as many as 5m do not qualify for a full state pension because they were unable to pay the full national insurance contributions because of caring for their families or being in low paid employment;
- 62% of pensioner couples have an annual income of £15,000 or less, and 45% of all single pensioners have an annual income of £10,000 or less;
- In a recent EU survey, only pensioners in Latvia, Spain and Cyprus were more likely to fall into poverty than those in the UK. The Institute for Fiscal Studies concludes that the proportion of pensioners below the poverty threshold will remain at its current level for at least the next decade, despite government reforms;
- A recent survey by Scottish Widows found that 1 in 3 future pensioners will not have sufficient income to avoid poverty when they retire. Up to 9m workers currently have no other pension provision than that which will be provided by the state when they retire;
- Means-tested benefits fail to reach 1.8 million pensioners and about £2.8 billion a year remains unclaimed.
Therefore, we support the National Pensioners' Convention in their claim for the basic state pension to be set above the official poverty level of £165 a week, to be paid to all men and women and increased each year in line with earning or the retail price index, whichever is greater.
