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Government faces a judicial review about short-changing 1950s women

In an earlier post Political Concern reported that 2.6 million women born in the 1950s will ‘lose out’ because of changes to pension law: “while corporations and the richest individuals receive tax breaks.

“Governments are balancing budgets on the backs of the poor”- (lawyer/novelist John Grisham)

Waspi, a UK-wide organisation with many local groups, is campaigning against the way in which the state pension age for men and women was equalised, whilst supporting the principle of equality.

One, the Chorley Supporters Group, is denouncing the government who arbitrarily told them to work for several extra years before they can claim their state pensions, causing them to lose income and peace of mind and obliging many to continue to work at a time of life when caring duties increase and energy levels start to fall. Read more in the Lancashire Evening Post.

Writing to the Financial Times they say: “It is about time the spotlight was turned on this government, which has effectively stolen the security net of millions of women by raising the state pension age far quicker than planned, with no personal notification”.

On the BBC’s World at One programme one of many testimonies was given:

Stella Taylor: “I was born in 1955, I had worked all of my life and, when I became unwell at just about the age of 58 I then discovered, quite accidentally, that my State Pension, which I was expecting to receive at 60, had been moved six whole years to sixty-six. And, like so many women in this movement, we were just aghast. We thought there must be a mistake. Had I received my pension at sixty, when I had expected to, I wouldn’t have been wealthy by anybody’s standards, but I wouldn’t have been in the depths of poverty that I now am. At the moment, because I am still unable to work due to ill health, I receive seventy three pounds and ten pence per week in Employment Support Allowance. Living, and paying all your household bills, out of that £73 a week is impossible. There are times when I have needed to use my local food bank because I haven’t been able to afford groceries.” More testimonies here. 

On February 10ththe BBC reported the warning of Amber Rudd, the pensions secretary, which should be extended to her own department:

”If you chronically mismanage a pension scheme . . . we’re coming for you.”

After pointing out that a freedom of information request has revealed recent research findings that the government reneged on their contributions to the national insurance fund over many years and redirected that money towards paying off the national debt, the Chorley Supporters Group asks:

“How government can expect other public or private institutions in this country to play fair with pension funds when it is not doing so itself”.

On February 11th, the government published a research briefing on the legislation increasing the State Pension age for women born in the 1950s. up

This unexpected rise in the state pension age will now “save” the Treasury an estimated £8bn by impoverishing 1950s women.

MP Grahame Morris pointed out that the Labour Party, Liberal Democrats, SNP, Plaid Cymru, the DUP and 50 Conservative MPs support the Waspi campaign.

He added that Landman Economics’ report gives the figure of £8bn savings to government and suggests that this sum should be seen in the wider context of current or planned government finance. Some examples follow: (Ed: links added):

FT Adviser reports that SNP MP Mhairi Black earlier pointed out that the National Insurance Fund is projected to have a substantial surplus at the end of 2017 to 2018 and the HMRC’s report confirms that the National Insurance Fund balance at 31 March 2018 was £24.2 billion and is expected to increase in the following year.

Morris ends: “In this context, finding the money for Waspi women seems a sensible price to pay to give these women justice . . . We know and we can see that it isn’t equal, it isn’t fair and it isn’t justifiable – it’s driving down the incomes and the quality of life of countless women”.

Next June the government faces a judicial review in the High Court to determine whether these recent increases to women’s state pension age are lawful and the Chorley Supporters Group, Chrissie Fuller, Jane Morwood, Betty Ann Tucker, Riley Ann Rochester, Beverley Cordwell, Lea Butler and Lesley Kirkham end by warning that they will not rest until justice is done.

 

 

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Wolf: Theresa May’s policies ’make a mockery of her rhetoric’. Are they also provoking ‘generational jihad’?

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Martin Wolf (FT) reminds readers of the words of Theresa May, the prime minister, in her speech to the Conservative party conference last year: “Our economy should work for everyone, but if your pay has stagnated for several years in a row and fixed items of spending keep going up, it doesn’t feel like it’s working for you.” She earnestly promised that this would change.

He continues: “Was Mrs May’s speech hypocritical? Yes”.

The work of the increasingly high-profile Resolution Foundation, a charity funded by Resolution, a successful insurance investment firm founded by Clive Cowdery, focusses on low earners and the policy responses required to lift their living standards. Cowdery was knighted in the 2016 New Year Honours for services to children and social mobility

david-willettsHowever, Resolution’s new ‘Executive Chair’ is David Willetts, a former Tory minister, described as a pioneer of generational jihad – revealing “a country that is choosing to give priority to the well-off over the poor, and the old over the young” (see https://twitter.com/resfoundation)

Wolf comments that whatever such a country might be, it is not one that, in the prime minister’s own words, acts “to correct unfairness and injustice and put government at the service of ordinary working people”.

Willetts should heed Richard Smerdon (Letters, FT): 

As I and many others can testify, millions of ageing men and women in this country are supporting their struggling children (themselves in their 30s and 40s but struggling nevertheless) in a huge variety of ways: childcare, money (in lump sums, guarantees and regular payments) and accommodation. This at a time (since the banking collapse) when returns on one’s savings have been negligible. We’ve been clobbered as well! The mess the government has got itself into over the crass handling of the tax credit issue (reform, yes, but wholesale impoverishment, no) is entirely its own fault, but many pensioners will be bracing themselves to help out yet again — which we do out of love for our children of course — but it seems an unfair additional penalty to pay for government incompetence.

Using the latest forecasts from the Office for Budget Responsibility to project household incomes up to 2020, the picture is one of rising inequality. Wolf asks, “Why is this happening?” He gives several reasons, including the impact of Brexit and the tax and benefit plans inherited and maintained by Mrs May.

Theresa May, as the Resolution Foundation puts it, is “actively choosing to increase inequality”. To those who have, the government has decided to give

The significant cuts in benefits for those of working age, notably the freeze on most benefits in cash terms are being exacerbated by the rising post-referendum prices. Also important are substantial tax cuts for the relatively well-off. FT View (editorial) adds: “By pressing ahead with these inherited policies Theresa May, prime minister, as the Resolution Foundation puts it, is “actively choosing to increase inequality”.

Wolf states: “This outcome makes a mockery of the government’s inclusive rhetoric”.

Mary Dejevsky refutes the Resolution assertions (echoed by MSM) that government is prioritising the old over the young

Wolf writes: “The government is giving priority to the well-off and the old over the poor and young”, but Mary points out that the average pensioner still has an income 25% below the average worker, adding: “You wouldn’t guess that from the media”. She points out:

“The state pension is one of the last truly contributory payments. To present it as just another handout and part of a ballooning benefits bill is an invitation to the young to resent the amount spent even more — and to the recipients to feel that they are being patronised. The state pension should be separated from the overall benefits bill forthwith”.

A graph compiled by Aegon Insurance shows that though the income gap has narrowed substantially, working households still have a higher disposable weekly income than pensioner households.

aegon-pensions

The Foundation’s latest report includes housing costs to back up its announcement that pensioner incomes (most mortgages paid) have overtaken working-age households (paying rent or mortgage charges).

A year after Mary wrote this article, the Western Daily Press reported on a study published in the Journal of the Royal Society of Medicine

“The elderly are dying from heart attacks and strokes because of the stress of cuts in their pensions, according to new research. Rising mortality rates among over 85s has been linked to reductions in spending on income support for the worst off. The study published in the Journal of the Royal Society of Medicine suggests some vulnerable older people have paid the ultimate price for austerity measures in England. Almost nine in ten of the 4.6 per cent increase in deaths in 2012 can be explained by the decline in pension credit beneficiaries, say scientists. In England, total spending on Pension Credits, income support payments for low-income pensioners, reduced by 6.5 per cent in 2012”.

Wolf concludes that the UK confronts huge challenges. Not only is productivity stagnant, it must also navigate Brexit: “It is hard to believe wise choices are being made for a country that wishes to secure a better future for its people. It is still harder to believe these are moral choices for a country forced to share out losses imposed by a massive financial crisis and weak subsequent growth” ending:

“The government may be brazenly hypocritical. But it also seems likely to get away with it”.

But the FT editorial adds a stark warning:” There is little chance of Philip Hammond, chancellor, reversing his predecessor’s regressive policies in next month’s Budget. Yet he should keep them under review. If the outlook darkens, a combination of falling living standards and rising inequality would be an extremely dangerous one in today’s febrile (Collins: intense, nervously active) politics”.

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In other words: a roused public might rock

the corporate/political boat.

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