Millions of pensioners will continue to have an unacceptably low quality of
life without changes in the Government’s pension policy, warns the UK’s
leading campaigning body on work issues.
According to The Work Foundation,
formerly The Industrial Society, the Government should admit that its
strategy for pensions is mistaken, and needs a drastic rethink.
In it’s latest current affairs paper, Resolving the Pensions Dilemma, The
Work Foundation argues that we need a higher level of basic State provision,
and a different sort of partnership between State and non-state providers,
with an end to the morass of contracting out.
The Work Foundation recommends:
- A drastic re-think of Government pension policy. If this simplifies and
restores confidence in the private pensions system it is likely to improve
take-up.
- The resources to be spent on the Pension Credit should instead be spent on
increasing the State basic pension and linking it to earnings.
- A genuine partnership of state, employer and individuals to deliver
economies of scale through a combination of voluntary effort and
legislation. This would take effect in a programme of standardising
benefits, communication and administration.
- Contracting-out should be abolished, at the same time as Phase 2 of the
State Second Pension is brought in (probably 2006-7) with a corresponding
adjustment in NI contributions.
- Tax relief, which disproportionately benefits the higher-paid, should be
altered to provide a tax subsidy for the lower-paid who contribute to
non-state pensions.
For press enquires or copies of Resolving The Pension’s Dilemma, please
contact Memuna Forna at The Work Foundation on 020 7479 2111 or 07970 936
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