Yesterday’s
report from a committee
of the House of Lords on “intergenerational fairness” raises some important
points, but spectacularly misses the most important of all. No, it’s worse than that – it doesn’t so much
miss the point as reinforce a completely and deliberately misleading view of
the problem.
I’ve
never thought that things like the Winter Fuel Payment, the Christmas pension
bonus and free TV licences were much more than political gimmicks – (comparatively)
cheap giveaways by the chancellors who introduced them with a view to seeking
the votes of a particular demographic whilst avoiding the more costly
alternative of paying a decent pension in the first place. (I put bus passes in a rather different category,
since they also help to encourage a switch from private to public transport
which has wider benefits than those gained by the groups in receipt of passes.) The question surrounding their abolition
should be the straightforward one about whether the basic pension is at an
adequate level.
Evidence
on that is mixed. There are various
tables showing that the state pension in the UK is lagging far behind that in
other countries (here’s
one example), but a fair comparison isn’t quite as simple as that, as this analysis
indicates, because there are a range of other factors which need to be taken
into account. It would be fair to say,
though, that state pensions in the UK are not exactly the most generous when
compared with other countries of similar size and wealth. Whilst I’m not a huge supporter of these
fringe gimmicks, for those wholly or mostly dependent on the state pension those ‘extras’ are small but they are a welcome supplement to income; removing
them without addressing the underlying low level of the pension is premature to
say the least.
None
of that is my real argument with yesterday’s report, however. That relates rather to the juxtapositioning
of benefits for the old with the struggles of the young, and the underlying
argument that giving to the young depends on taking from the old. Setting one less advantaged group against
another is one of the oldest tricks in the book for those who wield the real
power and control the real wealth. Blaming
immigrants for the lack of housing or blaming the old for the inability of the
young to afford a home are two sides of the same coin – and both avoid discussing
(let alone addressing) the real problem of an unequal distribution of wealth
and income in society. When the richest 10%
of the UK’s population own more than 50% of the total wealth, the important
inequality isn’t between old and young at all.
It was disappointing, but sadly not at all surprising,
to see Labour peers lining up with their Conservative counterparts to set the
young against the old by telling them that their problems are being caused by
giving too much money to pensioners. It's a long way from that party's historic roots.