Protestors show anger at billions for bankers but peanuts for pensioners

National lobby demands a decent state pension for all generations

Britain’s pensioner and trade union movements are today (Wednesday 22 October 2008) joining together for the first time to call for a higher basic state pension for the over 60s of today and tomorrow.

Over 1000 protestors of all ages are expected to lobby Parliament as part of a campaign organised by the National Pensioners Convention (NPC) and over 15 individual trade unions, to mark the centenary of the state pension (first introduced in 1908).

For the first time in 100 years, working age and retired people will lobby their MPs together to stress that a decent state pension is an issue not just for today’s pensioners, but for future generations as well. This point has taken on extra significance given the recent financial crisis and the weakness of private pensions which have recently lost £250bn in value – adversely affecting up to 5m people who are about to retire.

Key demands
The lobby will be calling for:

The basic state pension to be raised above the poverty level (of £151 a week for a single pensioner)
The link with earnings or prices (whichever is higher) to be restored immediately
The state pension to be paid to all existing pensioners on a universal basis

NPC general secretary Joe Harris said: “After 100 years of the state pension it’s a national disgrace that at least 2.5m older people are still living below the official poverty line, and millions more are struggling to meet the rising costs of living. Next year’s increase in the state pension will be a measly £4.55 a week, at a time when millions of older people will be faced with the unenviable dilemma of trying to heat their homes or eat properly.”

“For decades, the policy of successive governments has been to rely on means-tested benefits for existing pensioners and good occupational pension schemes for future generations, as a way of avoiding paying a decent state pension. But this approach is unravelling – with means-testing remaining unpopular and ineffective at getting money to the poorest and many decent company pensions being replaced by insecure money-purchase schemes. Billions of pounds have been wiped off private pension funds in recent weeks – and up to 5m workers now face an insecure retirement.”

“Pensioners – both now and in the future – need dignity and security in retirement that only a decent state pension can provide. The government should use the huge £46bn surplus in the National Insurance Fund and give everyone a pension that takes them out of poverty. It’s not acceptable that there’s billions for bankers, but peanuts for pensioners.”

TUC General Secretary Brendan Barber said: “This year we have celebrated the centenary of the state pension. It remains a key achievement, but its value has melted away since the link with earnings was ended by the last Conservative Government.”

“This is why unions are giving strong support to today's NPC lobby and rally, and joining the call to give today's pensioners a decent pension and restoring the link to earnings or prices.”

Programme
The programme for the day will be:

· DEMONSTRATION 11am Parliament Square (by Churchill statue). Up to 200 protestors with banners and placards, with some in Victorian costume.

· RALLY 12-2pm, Great Hall, Methodist Central Hall, Westminster
Speakers include: Joe Harris NPC General Secretary, Kate Hoey MP, Mark Serwotka PCS General Secretary, Bob Crow RMT General Secretary, Kelvin Hopkins MP, Paul Kenny GMB General Secretary, Christine Blower General Secretary NUT, Michelle Stanistreet Deputy General Secretary NUJ, Bishop Howard Tripp (Titular Bishop of Newport), Derek Simpson Joint General Secretary UNITE, Dave Prentis UNISON General Secretary and Brendan Barber TUC General Secretary

· LOBBY 1.30pm onwards Westminster Hall and Central Lobby, House of Commons

Pension Facts and Figures
· Pensioner poverty has risen in the last year by 300,000, taking the total to 2.5m older people living on less than 60% of median population income before housing costs (the same figure as in 1997/8). For a single pensioner this equals £151 a week.
· Next April, the state pension will rise from £90.70 by just £4.55 a week for a single pensioner and from £145.05 by £7.25 a week for a pensioner couple.
· About two thirds of those pensioners living in poverty are women. The Government admits that women’s pensions are a ‘national disgrace’, with the overwhelming majority of existing women pensioners receiving less than a full basic state pension. Many were badly advised about the ‘small stamp’ or were unable to pay their national insurance contributions because of caring for their families, and being in low paid or part-time employment. Many married women will see their state pension rise next year by just £2.70 a week.
· Between 1997 and 2006, the number of people living in severe poverty – defined as living on less than 40% of median population income – increased by 600,000. The poorest quarter of pensioner households saw their incomes rise by less than 1% last year, well below inflation. The poorest single pensioners saw their real incomes drop by 4%.
· Around 61% of pensioner couples have an annual income of £15,000 or less, and 45% of all single pensioners have an annual income of £10,000 or less.
· In a recent EU survey, only pensioners in Latvia, Spain and Cyprus are more likely to fall into poverty than those in the UK. The Institute for Fiscal Studies concludes that the proportion of pensioners below the poverty threshold will remain at its current level for at least the next decade, despite government reforms.
· If the link between the state pension and earnings is restored in 2012, 3m existing pensioners will have already died. Even those who actually get a pension in 4 years’ time will only receive £1.40 a week more than they would have got anyway under the present system, because the level of the state pension will be so low.
· Had the link between the state pension and average earnings not been broken in 1980, a single pensioner would now be getting £154 a week rather than £90.70.
· By 2012/13, the National Insurance Fund will have an estimated balance in excess of £114bn - which the Government continues to use for other purposes.
· A recent survey by Scottish Widows found that 1 in 3 future pensioners will not have sufficient income to avoid poverty when they retire. Up to 9m workers currently have no other pension provision than that which will be provided by the state when they retire, whilst up to 5m soon-to-be pensioners have seen their pension pots dramatically reduced as a result of the current economic crisis.

Notes for Editors
· Key spokespeople from the national and regional pensioner campaigns will be available for interview, as well as trade union officials
· All regions of the country will be represented
· There will be banners, placards and pensioners dressed in Victorian costume at the Parliament Square protest and an old Routemaster Campaign Bus touring the area

For more information contact

NPC – Neil Duncan-Jordan 07940-357-608
TUC – Rob Holdsworth 07717 531150