100 Years of State Pension Norman Jemison National Pensions Convention

Prior to 1908 Working people in old age depended on Charity Parish relief Workhouse

End of 18 th Century Queen Victoria’s Britain was one of the wealthiest But milllions lived in poverty Most old people faced poverty

Joseph 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 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 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 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 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 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 25 th March 1899 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 Labour for Promoting Old Age Pensions for 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 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 War Boer War 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 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 Act From 1 st Jan 1909 those reaching 70 years of age if qualified under means-testing could collect 5 shillings by week. ‘Lord George’ On 31 st 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 Pension At the first world war it was reviewed Pension was increased to 10 shillings Means testing was abolished

State 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 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

Problems The presence of means-testing over 2 million older people are entitled to Pension Credit of £ (which is below the Official Poverty Level of £151 per week) 2007 saw an extra 300,000 pensioners fall below the official poverty level

Poverty 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, % of single pensioners live on £6,000 or less Majority with company pensions receive less than £3,000 from them

The 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 £ 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 continues What 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? 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 Come to Lobby of Parliament 22 nd Oct 08 – Decent State Pensions for All Generations

100 Years on, the campaign continues 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 Future