At last some good news from the government. It is planning a radical overhaul of the state pension, according to Vince Cable. And although he did not confirm reports in the Daily Mail that it could rise from about £97 a week for a single person to around£140, he did say that the proposals included replacing means-tested pension credits with a flat-rate payment, which would ensure a "decent" retirement.
OK. I don’t think £140 a week means a decent retirement, but it’s a million miles closer than the current state of affairs.
Of course people say that it is too expensive and Britain could never manage this kind of pension. But it fair to say that many continental countries have pension far better than this. It would mean vast savings on means testing calculations.
At the moment, pensions are topped up to £132 a week for the poorest by way of a pensions credit.
The Department for Work and Pensions has said that they will publish proposals later this year.
Of course, it's not going to happen for a long while and the figures may have to be revised. If it takes 5 years to implement, then the £140 will have to be upgraded or those who at present are entitled to all the pension credit will have to take a fall in income!
Labour peer Patricia Hollis, who had called last year for a flat rate pension of £132, was said to be delighted. She rekoned the proposals would be affordable because increases in the state pension age.
Most other commentators thought that the idea was a good one too, with some scepticism from a few who feel that it is a heart-warming story spun to balance out the unfairness of some of last week’s announcements.
The Times said the proposed pension changes were not affordable. Their chief economics person said that the sums didn’t add up and that it would require extra money as it would not pay for itself.
But the National Association of Pension Funds, which described the UK's state pension as the worst in Europe, said it welcomed simplification and less bureaucracy.
I think it is a good start. At £99, the UK state pension is derisory and despicable. I’ve criticised many things that this government has done, and with good reason, but credit where it is due. If it pulls this off it WILL be a progressive move and credit where credit is due. It is to Labour’s eternal shame that it took a Conservative-Liberal government to make this move.
Let’s hope that it is brought in speedily and that the amount at which it is pitched will rise swiftly, to bring us a little closer to all other countries in Europe who treat their old with a little more respect than we do.
OK. I don’t think £140 a week means a decent retirement, but it’s a million miles closer than the current state of affairs.
Of course people say that it is too expensive and Britain could never manage this kind of pension. But it fair to say that many continental countries have pension far better than this. It would mean vast savings on means testing calculations.
At the moment, pensions are topped up to £132 a week for the poorest by way of a pensions credit.
The Department for Work and Pensions has said that they will publish proposals later this year.
Of course, it's not going to happen for a long while and the figures may have to be revised. If it takes 5 years to implement, then the £140 will have to be upgraded or those who at present are entitled to all the pension credit will have to take a fall in income!
Labour peer Patricia Hollis, who had called last year for a flat rate pension of £132, was said to be delighted. She rekoned the proposals would be affordable because increases in the state pension age.
Most other commentators thought that the idea was a good one too, with some scepticism from a few who feel that it is a heart-warming story spun to balance out the unfairness of some of last week’s announcements.
The Times said the proposed pension changes were not affordable. Their chief economics person said that the sums didn’t add up and that it would require extra money as it would not pay for itself.
But the National Association of Pension Funds, which described the UK's state pension as the worst in Europe, said it welcomed simplification and less bureaucracy.
I think it is a good start. At £99, the UK state pension is derisory and despicable. I’ve criticised many things that this government has done, and with good reason, but credit where it is due. If it pulls this off it WILL be a progressive move and credit where credit is due. It is to Labour’s eternal shame that it took a Conservative-Liberal government to make this move.
Let’s hope that it is brought in speedily and that the amount at which it is pitched will rise swiftly, to bring us a little closer to all other countries in Europe who treat their old with a little more respect than we do.
