Basic State Pension

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Conference
2008 National Delegate Conference
Date
31 May 2008
Decision
Carried

Conference notes the Government’s eventual recognition that the pensions-earnings link should be restored and that employers should no longer be able to evade taking some responsibility for their employees pensions.

Conference does not, however, accept the Government’s proposals that:

1)the link will not be restored before 2012;

2)even then, restoration will only occur subject to affordability and the fiscal position;

3)the level at which the link will be restored is not actually specified;

4)the pension age for the majority will be increased to 66 from 2024, to 67 from 2034, and to 68 from 2044.

Conference believes that just because this package represents a consensus between Tony Blair, Gordon Brown and ex-Confederation of British Industry (CBI) leader, Adair Turner, it does not follow that it begins to meet the just expectations of Britain’s current and future pensioners.

Conference regrets that in his March 2007 budget, the Chancellor of the Exchequer, Gordon Brown, again failed to increase the basic state pension to restore its value to the figure it would have been if the link to average earnings had not been broken by Margaret Thatcher’s Conservative Government. Conference believes that pensioners should have an immediate rise now to restore the pension value and that future increases should be linked to male average earning or the Retail Price Index (RPI) whichever is the greater.

Conference notes that the Government has also again ignored the discussions between the National Pensioners’ Convention and the then Minister for Work and Pensions, John Hutton MP. Campaigns, responses to the Pensions White Paper and lobbies also seem to be ignored as if pensioners do not exist. The continued attitude of the Government is deplorable and has to change if MPs are expecting pensioners to re-elect a Labour Government.

Conference notes, however, that the Labour Party Conference has voted against delaying restoration of the link until 2012 and calls on all UNISON representatives to press the government to respect the democratic decisions agreed by its own party conference.

In the meantime, the abhorrent means-testing of pensioners continues, causing concern and hardship to those who are unable to cope with the bureaucracy and who exist with incomes below the poverty level (1.8 million pensioners are entitled to Pension Credit but do not claim it according to Government figures). Other pensioners are just slightly above the cut off level for claims and are not eligible for any financial help at all.

In April 2007, Pension Credit was raised by £5 per week, basic state pension by £3, increases in Pension Credit are linked to earnings.

Furthermore, Conference recognises and it is proud of the role played by the trade union movement in starting the campaign in 1898 which led to the Old Age Pension Act becoming law on 1st August 1908.

Conference therefore congratulates the National Pensioners’ Conventions (NPC) for highlighting the centenary of the first old age pension in 2008 and gives full support, through whatever appropriate means, to the NPC’s demand that the government raise the basic pension as a matter of urgency to at least £134 a week (official poverty level) for all pensioners and increase it annually in line with earnings or prices (whichever is the greater).

Conference

1)calls on the National Executive Council to step up the campaign in favour of giving all pensioners a fairer share of the country’s increased prosperity without delay and liaise with the National Pensioners’ Convention, Trades Union Congress and appropriate organisations throughout the UK to campaign for:

a)an immediate substantial increase in the basic state pension to £138 per week to help restore its real value;

b)the immediate restoration of the link to male average earnings or RPI whichever is the greater. Deferring this link to 2012 is unacceptable as many more pensioners will have died struggling to meet higher fuel bills and coping with increased council tax, water rates etc.;

2)requests that regular updates on progress be communicated to members as appropriate.