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
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