Tags
38 degrees, age, agreement, benefit cap, civil servant, class, Coalition, cold weather payment, committee, Conservative, Daily Mirror, Democrat, Department, discrimination, DWP, free bus pass, free TV licence, hypocrisy, hypocrite, Iain Duncan Smith, judge, Lib Dem, Liberal, life expectancy, location, means test, member, MP, national insurance, NI, Parliament, pensionable, pensioner, Pensions, petition, retire, ring fence, social, state pension, Tories, Tory, work
Someone’s raiding the pensions piggy-bank: Government changes mean the rich will be subsidised by the poor.
It seems the Conservatives cannot wait to betray their most loyal voting group. If you are a pensioner – beware!
As trailed on Vox Political last November, the Department for Work and Pensions appears to be planning to delete the cold weather payment from its chequebook, along with free bus passes and free TV licences.
We already know that the age at which the state pension will be paid is rising, meaning people will have to continue working for longer before they qualify for the £144/week payment (with a minimum National Insurance record of 30 full years). This is a betrayal of promises made by both the Conservatives and the Liberal Democrats in their document ‘The Coalition: Our Programme for Government’.
Because life expectancy depends on where you live and your social class, this means many poorer people will enjoy only three-to-six years of retirement on average, while richer pensioners get 17-20 years of pension payments. That’s right – rich people even get a better deal from the state pension.
Meanwhile, the taxpayer is being asked to fund three-fifths of the pension scheme for members of Parliament, who qualify at the age of 60 after 20 years’ service (or after 15 years if aged between 60 and 65) and receive an average of £353/week (see House of Commons Library SN6283: MPs’ Pension Scheme – 2012 onwards).
MPs (along with civil servants and judges) will receive transitional protection as the pensionable age rises – meaning they won’t lose out. More than 700,000 working women, on the other hand, have received less than two years’ notice of changes that will deprive them of up to £7,500 per year.
Iain Duncan Smith announced at yesterday’s meeting of the Commons Work and Pensions Committee that he was considering removing benefits that are exclusively for pensioners, in order to bolster his Benefit Cap.
He said: “We need maximum flexibility with the cap. Pretty much all existing ringfences will have to disappear.”
Asked if pensioner benefits would be included in the cap, he said: “These are matters which are still under discussion.”
The Benefit Cap was hailed as a hugely popular policy after its introduction last year, but it is now questionable whether pensioners will be quite so enthusiastic.
Including pensioners’ benefits among those that are capped means they may have to be means tested in the future, as the number of pensioners grows – putting pressure on the £200 billion benefits budget.
The Daily Mirror reported that Treasury sources played down this prospect last night, saying the annual spend on pensioner benefits was dwarfed by other payments. This is disingenuous as the annual spend on pensions is more than on all the other benefits combined. Cutting pensioner benefits and forcing people to work longer before they receive their pensions will deprive senior citizens of billions of pounds.
While changes to pensioners’ benefits are still under discussion, changes to the age at which pensions are paid have already become law.
The hypocrisy of MPs in imposing new rules that disadvantage ordinary people while protecting themselves, judges and civil servants has led to the creation of a petition on the 38 Degrees website, calling for the changes to be reversed.
The petition states: “It is discrimination to impose ‘rules’ that disadvantage one group of people more than another. It is against the law to treat someone less favourably than someone else. How can this Government be allowed to get away with this?
“Because of this broken promise those of us affected are now being forced to work longer and wait longer to receive our state pension, which is an entitlement and something to which we have contributed, all of our working lives.
“These changes will also have a detrimental impact upon employment opportunities for young people. The longer we are being forced to work, the fewer jobs there will be for them. Is this an honourable way to treat people?
“The right to retire with financial security, at the age that has been promised throughout our working lives, has been denied.
“This broken promise is unfair, unnecessary and totally unacceptable. Ministers need to do a u-turn on this mean-spirited move and honour their word.”
The petition currently (February 4) has around 7,100 signatures. If you agree with it, please visit the 38 Degrees website and sign.
And don’t forget to mention it to anyone you know who is coming up to retirement age.
Vox Political believes pensioners should have the dignity of financial security.
Like them, the site needs funds to continue.
That’s why YOUR help is vital.
You can make a one-off donation here:
Alternatively, you can buy the first Vox Political book,
Strong Words and Hard Times
in either print or eBook format here:
Mike Sivier's blog 