John Baron

Conservative Party | Billericay and District

Points of View

Thanks

Now that I’m back at my desk following the operation to enable me to breathe more comfortably again after my car accident, I would like to take this opportunity to thank you for the many messages of goodwill I have received. Naturally, I have had to miss a number of engagements whilst recovering and therefore have also very much appreciated how understanding everyone has been. Its now good to have this episode behind me.

The State Pension

There has recently been much discussion about whether sufficient provision for retirement is being made today by tomorrow’s pensioners.

In my view, the present state pension system fails too many people. For a start, the state pension needs to rise faster each year and this should be achieved by re-linking its annual increase to wage growth rather than inflation growth, which is lower.

As we know, the pension is linked to inflation. But historically wages rise faster than inflation, and so pensions will rise faster once they are linked to wages.

This single measure would increase pensions by £7 a week, and for a couple’s pension by £11 a week, on top of price inflation over four years. This is a policy supported by various pensioner organisations and by the Conservative Party, but sadly opposed by the Government.

Indeed, present Government policies are pushing more and more pensioners onto means-tested benefits. In 1997, 33% of pensioners were on such benefits. By 2003, this had risen to 52% and is estimated to rise to over 70% by 2025 if current policies continue.

This is wrong. Conservative proposals to re-link the state pension to wages would ensure that within 5 years at least one million pensioners would no longer be subjected to the indignity of means testing. The Pension Credit would stay but fewer pensioners would need to claim it as their pension increased in value. The Winter Fuel Allowance will also be retained.

I believe we can also modernise the current system to offer a fairer deal for women. For example, proposals should include bringing the contributory principle for women up to date by scrapping the rule which says that if you’ve worked for less than 10 years, you can’t receive anything from the basic state Pension, and replacing it with a Pension for everyone who has paid National Insurance contributions. 

The present system needs reform but at least bigger pension increases would go someway in ensuring dignity and security in retirement.