Pensions

We believe in decent pensions for ALL.

The current state pension system is a mess. The basic pension is insufficient for people to live on and for many has to be topped up by benefits. The same pension is also paid to people who pay income tax, the state paying with one hand and collecting with the other. The system also discriminates against women.

Reforming the current pensions system will be controversial. At its heart, however, is the fact that successive governments have deceived people into thinking that they were paying into a pension fund through national insurance contributions. Unfortunately, no such fund was set up, instead successive governments have spent the money paying current pensioners, and on other public expenditure. As people live longer the overall cost of state pensions rises and the pensions become less generous.

Our solution is encourage people to work longer, in return for a higher pension when they retire.

The Peoples Party will:

  • establish a basic state pension of £500 per week for both men and women irrespective of previous national insurance contributions payable at 75 and over

  • allow people to choose if they wish to retire earlier, fixing their pension payment at the level on the retirement scale at the age of retirement
  • raising the bottom age and the top of the scale by one year every five years.
  • exempt pensioners at 75 and over from education, health and council taxes. The abolition of taxes on savings will also end the double taxation of pensioners incomes
  • change the way state pensions are provided by establishing independent pension funds that will issue debt to finance pension payments and reclaim the total value of pensions paid from an individual’s estate. The Government would make up the shortfall between amounts paid and those reclaimed
  • provide free social care or vouchers