GIVE US A LIVING STATE PENSION

RMT helpline 0800 376 3706 :: november/december 2024 :: RMTnews 22 If you’re still working, you might think that pensions haven’t got much to do with you. You’d be wrong as the conditions which pensioners are currently campaigning for will be the ones you inherit. That is why RMT works closely with the National Pensioners Convention (NPC) and why our branch affiliates at regional level. The recent furore over withdrawal of the Winter Fuel Payment highlighted the ongoing problem of pensioner poverty: it is estimated that more than two million currently live below the poverty level. It will result in a higher rate of winter deaths this year (more than 5,000 last year), because there will also be a 10 per cent increase in fuel prices. I wonder how many of those Labour MPs who voted against September’s Early Day Motion which called for a halt to the WFP withdrawal will feel any remorse as the deaths are announced? People are rightly angered and disgusted that a so-called Labour government refuses to tax the rich and, instead, punishes the poor. But it’s a bit of a distraction from the real issue. The underlying problem, which no government wants to deal with, is the continued existence of severe poverty and not just among pensioners in a country which is ranked in the top six of the world’s wealthiest nations. The real issue is that the UK state pension is too low: it represents 17 per cent of average final earnings, while the average across other European countries is 57 per cent. The Winter Fuel Payment was introduced by a Labour government in 1997 as a concession to the problem of pensioner poverty when the real change should have been an increase in the state pension. The government says the “black hole” prevents this, while committing to massive increases in defence expenditure and no commitment even to dealing with rich tax dodgers, never mind introducing an additional wealth tax. The 1946 National Insurance Act was a contract between working people and the state to provide a state insurance scheme, while income tax would provide services. The NI Fund currently provides 14.8 per cent of government revenue and is always in surplus. Instead of using this surplus to improve pensions, governments borrow from it to fund other projects. Furthermore, governments and even trade unions have relied on the market-place to organise occupational pensions. Apart from the fact that 27 per cent of households have no occupational pension, recent economic decline has impacted severely on many occupational schemes. Clearly then, Social Insurance and collective provision are the best methods for ensuring a decent standard of living in retirement. The NPC support the demand for a Living State Pension, based on 70 per cent of the Living Wage. We believe there should be no more borrowing from the National Insurance Fund, but surpluses should be used to benefit pensions. The Upper Earnings Limit on NI contributions, which allows higher earners to pay less NI, should be abolished and the Triple Lock maintained. The 35 years’ qualifying payment period for the new state pension must be abolished. How many of today’s young workers, in an economy dominated by precarious employment, can hope to qualify? Eliminating poverty among all sections of the community must become a priority for government – the first step being a Wealth Tax. Above all, we need a united struggle. Unions and the TUC must work alongside pensioner organisations and prioritise the struggle for a Living State Pension, rather than a state pension as a fall- back income. Pensions are too important to be left to the vagaries of the capitalist market with no democratic control over funds. GIVE US A LIVING STATE PENSION Glen Burrows and Kevin Williams of RMT’s South Wales & West retired branch demand action BANNER: Bristol retired members Glen Burrows and Tony Jakeman