Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page: https://www.socialistparty.org.uk/issue/804/18366

From The Socialist newspaper, 26 March 2014

Pensions: Osborne's 'counter-revolution'

The right-wing media has been falling over itself to heap praise on George Osborne's "pension revolution". This follows the Chancellor's relaxation of rules regarding private pensions.

From April 2015, people over 55 with a defined contributions pension scheme will be able to take all their pension savings in one lump sum instead of having to purchase annuities, which pay a regular income.

Rachel Reeves, Labour's shadow work and pensions secretary, supports Osborne's changes.

Lib Dem pensions minister Steve Webb enthused that elderly people could now blow their pension pots on a Lamborghini sports car (cheapest model 114,000!) if they wished to.

Like their Tory counterparts it only goes to show how out of touch the Lib Dem MPs are. As the National Pensioners Convention points out, nearly one-third of workers retire with less than 1,500 in savings.

Moreover, the majority of people in the government's new occupational self-enrolment pension scheme will be lucky to get 36,000 after a lifetime of contributions.

As Dot Gibson, NPC general secretary, says: "Forget buying a Lamborghini - at this rate pensioners will be lucky to afford a Reliant Robin".

Barely mentioned in the media's budget reports was the incorporation of elderly people's fuel allowance, cold weather payments and Christmas bonus into the government's welfare cap, which leaves them vulnerable to future cuts.

Another detail of the 'pension revolution' is that if people take their pension pot in one lump sum, everything over 25,000 will be taxable as income.

And of course there will be no shortage of con-artists waiting to pounce on unsuspecting people with 'investment opportunity' scams.

All the talk of 'liberating pensions' conveniently overlooks the stark reality that many occupational final salary pension schemes have been closed to new entrants, revised to cost more in contributions but pay out less, or have been scrapped by employers altogether.

Public sector workers' final salary pension schemes are going the same way, and the state pension retirement age has been increased and is likely to be further increased.

Aside from a minority of very wealthy pensioners who might benefit, Osborne's 'pensions revolution' has all the markings of a 'counter-revolution'.

Dave Carr

Why not click here to join the Socialist Party, or click here to donate to the Socialist Party.


In The Socialist 26 March 2014:


Socialist Party news and analysis

No to junk jobs

Fight for a 10 an hour minimum wage

2014 Budget: More misery for the majority

Killed asylum seeker - victim of racism and privatisation

Pensions: Osborne's 'counter-revolution'

Them & Us


International socialist news and analysis

Turkey: new wave of protests


Socialist Party youth and students

Defaults reveal student debt madness

Jobmatch: yet another fiasco of privatisation

Leeds protest: stop the student loan sell-off

Young people: alienated, not apathetic


Socialist Party workplace news

Probation workers' action can defeat privatisation

Teachers must fight on to stop Gove

Doncaster care workers determined to win

Workplace news in brief


Readers' comments

The great miners' strike 1984-85

Adventures in bedroom tax land


Socialist Party reports and campaigns

A socialist alternative to the austerity parties

Bristol council: Voting for cuts, voting for careers

It's the system that's ill

'Optimistic' Bluebirds protest

Marching against racism

May Day greetings with the Socialist


 

Home   |   The Socialist 26 March 2014   |   Join the Socialist Party

Subscribe   |   Donate   |   PDF  |   ebook






Related links:

Pensions:

triangleThe Socialist inbox

triangleTories prepare to attack education workers' pensions

triangleScottish airport strikes - fight for better pay and pensions

triangleThem & us

triangleYoung and old, unite and fight!

Revolution:

triangleBirmingham South West Socialist Party: Sudan - Revolution or Counter Revolution?

triangleSudan: The revolution under threat

triangleSudan: Military crackdown to break revolution

triangleCounter-revolution in Sudan

Pension:

triangleStriking workers defy the race to the bottom at Glasgow and Aberdeen airports

triangleThe Socialist Inbox

triangleCuts and NHS crisis result in 'excess' elderly deaths

Pensioners:

triangleResidents mobilise to stop eviction

triangleResidents, housing activists and pensioners mobilise to stop eviction

News and socialist analysis

News and socialist analysis

21/8/19

Brexit

The 'national unity' threat to Corbynism

14/8/19

General election

General election looms... Capitalists in chaos: Fight for socialism

14/8/19

NHS

Tory bribes don't hide destruction of NHS

14/8/19

General election

Boot out Boris and all the Tory toffs - fight for socialist policies for the 99% not the 0.1%

31/7/19

Climate change

Tories look in wrong place for climate solutions

31/7/19

Tories

Build a working-class movement to force an election

31/7/19

Liberal Democrats

Lib Dems: little bosses' party elects eager pro-austerity leader

31/7/19

Council

Labour promises to end council privatisation: councils must do that now!

31/7/19

Universal Credit

Fighting Universal Credit

31/7/19

CWI

CWI refounded with determination and confidence

30/7/19

Brexit

Boris, Brexit and British capitalism

21/7/19

CWI

Socialist Party conference reaffirms the CWI's historic approach

17/7/19

General election

Stop Boris - General election now

17/7/19

Them & Us

Them & Us

17/7/19

Universal Credit

Fraudsters thrive and claimants suffer in despicable Universal Credit scam

triangleMore News and socialist analysis articles...


Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party
Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube

LATEST POSTS

CONTACT US

Phone our national office on 020 8988 8777

Email: info@socialistparty.org.uk

Locate your nearest Socialist Party branch Text your name and postcode to 07761 818 206

Regional Socialist Party organisers:

Eastern: 0798 202 1969

East Mids: 0773 797 8057

London: 020 8988 8786

North East: 0784 114 4890

North West 07954 376 096

South East: 020 8988 8777

South West: 07759 796 478

Southern: 07833 681910

Wales: 07935 391 947

West Mids: 02476 555 620

Yorkshire: 0114 264 6551

ABOUT US

ARCHIVE

Alphabetical listing


August 2019

July 2019

June 2019

May 2019

April 2019

March 2019

February 2019

January 2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999