When the welfare state started post WW2. Most people who were in receipt of old age pensions from the state weren't expected to live very long. It wasn't unusual for men, who worked hard in manual labour - coal mines, shipbuilding etc - to die not that long after they had retired at 65. Life expectancy has improved dramatically since then.
About a decade ago, an attack was launched on pensions by the right wing press. It was aimed mostly at 'pension fat cats' - public sector workers with final salary pensions. A deliberate attempt was made to drive a wedge between public and private sector workers, who were said to have less good pensions, which was true, on the whole. Divide and rule. Of course, the aim of the campaign was to reduce pension benefits for all workers, and it had some success.
Now, we see a similar battle being fought on pensions. The starting point is the 'triple lock'. The triple lock, introduced by the Tories, means that annually, the state pension rises by whichever is the highest of three factors: earnings growth, inflation, or 2.5%. Last year it was inflation and the pension rose by 10%. Next year it is predicted to rise by 8.5%. This has caused outrage on the right, who claim it is unaffordable. There are also moves on the right to raise the pension age. Ian Duncan Smith, the ex-leader of the Tory Party, has suggested the pension age be raised to the age of 75. As Jim Mills says in the linked article, this is "class warfare".
The reality is that the UK has the lowest pension of any country in the developed world (OECD). In 2022 the number of pensioners living in poverty rose by 200,000:
"One in five pensioners – more than 2 million people – are living in relative poverty in the UK, an increase of more than 200,000 in the past year alone, according to a comprehensive review of national data."
In addition, if the 8.5% rise goes ahead it will put many pensioners above the tax threshold and their pensions will be taxed.
A key part of this new campaign is - you've guessed it - divide and rule. This time, it's the young being pitted against the old. Young people are struggling, unable to afford a mortgage, saddled with student debt, and paying extortionate rents. They are what Dan Evans in his excellent new book describes as the New Petty Bourgeoisie*.
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| A Nation of Shopkeepers: Dan Evans |
All of this, apparently, is the fault of the elderly, who were lucky enough to grow up in a time when it was possible to get a mortgage and a half decent pension. They are being blamed by the pundits. Don't be fooled. All of this is the fault of successive Conservative governments, whose policies have brought about this situation. At this rate, with more class warfare to come, by the time that youngsters reach old age, all except the wealthy few, will be living in poverty.
Don't let them divide us. Decent state pensions for all are affordable, as Richard J Murphy explains in his blog here. Get the rich to pay some damn tax!
* I highly recommend you read Dan Evan's book. Lots of food for thought about the state of class in the UK and where our nation is going.
