Labour prevaricates on pensions

The Pensions Review is in danger of being hijacked by proposals to allow the state pension to wither away, warns Terry Heath, Secretary of the South West TUC Pensioners' Forum.

Top-up private pensions, as favoured by Frank Field, can only intensify the miserable conditions many pensioners endure. The present workforce, especially those on the low pay scales so favoured by many employers, will never be able to make adequate provision for their retirement, which may well come earlier than they think. To attain a reasonable retirement pension, it is necessary for some 16% of salary to be invested through one's working life, but 16% of low pay equals not much pension.

Many employers are threatening to close down their company schemes if any government requires them to actually pay into employees' schemes as they once had to if they wanted to attract and hold staff. The TUC totally failed to grasp the opportunity to start up its own scheme in conjunction with their Unity Bank. A portable scheme such as that enjoyed by teachers, NHS and Civil Service employees would have boosted union recruitment as workers want a feeling of stability and are denied it by both government and employers.

Pensions Review members met Pensions Minister John Denham in September 1997 and discussed the vital restoration of the earnings link. To avoid frightening him, they proposed an annual increase of 1.1% above average earnings to restore the link gradually. In October, they discussed the restoration of SERPS to its original value. In November, the subject was the pathetic 25 pence increase for those who reach 80 years. December saw the idea of "Stakeholder" pensions rear its ugly head and the January meeting covered community care, or the lack of it. The sum total of concessions to date is £20 for winter fuel. What really gets up pensioners' noses are the persistent leaks from government, totally negating any real dialogue and giving the impression that all the real decisions have already been made and the Review is a cosmetic exercise.

A further Pensioners Rally is to be held in London on Saturday, 19th September starting at 1 pm from Embankment Tube. For more information contact the Pensions Day Group, Tel: 0171-831 8600.

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