The Battle for the Old Age Pension
Before the introduction of the first ever Old Age Pension in 1908,
old people who were no longer able to work, depended upon charity to
survive.
For working people on low factory wages it was impossible to save or
put anything aside for their old age. Industrialisation had uprooted
the rural population and traditional domestic working and family
stability suffered, leaving thousands of old people without any
support. Their last resort was the workhouse.
Modelled upon the prison system, discipline was rigid and breaking
the rules could lead to increased working hours, reduced diets or
solitary confinement.
By 1891, England had a population of just over 29m, of which 1.3m
were paupers. Amongst those, the over 60s accounted for 31%. The
workhouse had become the state’s way of ‘caring’ for the elderly.
On 13 December 1898, Rev Francis Herbert Stead, a Christian
Socialist from Tyneside convened a meeting in the Browning Hall,
Southwark at which Charles Booth, the Victorian social reformer and
anti-poverty campaigner was the main speaker. This was to be an
historic occasion which initiated a nationwide campaign.
In the following year, further conferences in support of old age
state pensions were convened in Newcastle, Leeds, Manchester,
Bristol, Glasgow and Birmingham.
Following these initial public meetings, involving thousands of
trade unionists, the National Committee of Organised Labour for
Promoting Old Age Pensions for All was formed in January 1899.
On 9 May 1899, the National Pensions Committee called a
national campaign for universal non-contributory old age pensions at
65.
Over the next decade the campaign managed to secure hundreds of
thousands of signatures for its petitions, and persuaded the
Parliament to hold various inquiries into the viability of
introducing a pension.
Finally, on 1 August 1908 the Old Age Pensions Act became law.
The pension pioneers had secured a non-contributory pension of five
shillings (25p) a week for men and women at 70, which was subject to
a means-test.
Although this was not a complete victory, they recognised the
tremendous social advance that had been made by getting the
government to acknowledge that the state had a role to provide for
those reaching old age. The pioneers also saw this achievement as a
first instalment towards a better pension in the future - something
which today’s ongoing campaign also seeks to achieve.
A 100 years of state pension and still not enough!
Since 1908, the state pension has been through
numerous changes, most notably becoming a contributory,
pay-as-you-go scheme of National Insurance in 1946. But over the
years it has not reflected the growth in our national wealth, and as
a percentage of average earnings it has continued to decrease.
As a result, the majority of today’s older generation now struggle
to make ends meet, as the gap between pensioners’ cost of living and
the basic state pension continues to grow. Over 2m older people are
entitled to means-tested support of £124 a week, and even more live
below the official poverty level.
The most striking similarity with 100 years ago, is the presence of
means-testing. More pensioners are means-tested now than at any
other time and even in its modern guise, it remains unpopular,
demeaning and ineffective at getting help to those who need it most.
Like a century ago, the poorest of today’s pensioners are also
women; the vast majority of whom receive less than a full state
pension. Many were badly advised about paying 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.
However, the struggle for a decent pension should not be something
simply of concern to existing pensioners. It should also interest
the pensioners of the future. With decent occupational pensions
under increasing attack and in decline, many of today’s workers will
face an uncertain retirement unless the state pension is
substantially improved and made fully inclusive.
Yet, the government argues that to do so is unaffordable. The
National Insurance Fund currently has a surplus of £38.4bn, which is
forecast to grow to £72bn by 2012. The money exists to pay a decent
state pension - what is lacking, just like in the late 1890s, is the
political will to do so.
The answer therefore, as it was for the pension pioneers in 1898, is
to organise and campaign to build public pressure for change
that will ultimately achieve dignity and financial security for all
in retirement.
This is an edited
version taken from “The Battle for the Old Age Pension” – an
attractive 16 page souvenir centenary publication
.
Click here to download the Order
Form in PDF format
Click here for
Timeline - History of Pensions at Seniors Network
