100 Years of 100 Years of State PensionState Pension

Norman JemisonNorman Jemison

National Pensions National Pensions ConventionConvention

Prior to 1908Prior to 1908• Working people in

old age depended on

• Charity• Parish relief• Workhouse

End of 18End of 18thth Century Century• Queen Victoria’s

Britain was one of the wealthiest

• But milllions lived in poverty

• Most old people faced poverty

Joseph Chamberlain MPJoseph 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”

Charles BoothCharles 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

Lord RothschildLord Rothschild• 1896 a Treasury

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

Francis Herbert SteadFrancis 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

New Zealand leads the wayNew Zealand leads the way• Stead learn from

William Pembert Reeves, that New Zealand had introduced a Government’s non-contributory Old Age Pension of 7 shillings per week for all at 65 years of age.

The 10 year campaign The 10 year campaign 1898-19081898-1908

• 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)

Birmingham 25Birmingham 25thth March March 18991899

• 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.

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

for Allfor 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.

Chaplin CommitteeChaplin 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

Boer WarBoer 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

National Pensions CampaignNational 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

1908 Pensions Act1908 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

1919 Review of Pension1919 Review of Pension

•At the first world war it was reviewed

•Pension was increased to 10 shillings

•Means testing was abolished

State pension 1908State 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

State pension 2008State 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

ProblemsProblems

• 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

PovertyPoverty• 1 in 4 of today’s 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

The issueThe issue• Government has said it will restore the link

between earnings and pension in 2012 – 3 million of today’s 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

The Campaign continuesThe Campaign continuesWhat needs to be done?• NPC has launched Early Day Motion 658 on the

Pension Centenary, currently supported by 120 MP’s. 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

What do you have to do?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 NPC’s Campaign Fighting Fund

• Sing up online to the Campaign www.pension100.co.uk

• Come to Lobby of Parliament 22nd Oct 08 – Decent State Pensions for All Generations

100 Years on, the campaign 100 Years on, the campaign continuescontinues

• 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 don’t 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.

Now and in the FutureNow and in the Future