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Pensioner poverty

(140 Posts)
Whitewavemark2 Tue 16-Nov-21 08:57:21

The following figures are from the Joseph Rowntree Foundation.

In 1996 at the end of years of Tory government, 41% of single woman pensioners were classed as being in poverty.

Within 10 years and as a result of Labour government policy this had dropped to just 18%.

The Tory party introduced austerity - as a political policy- in 2010 and in the attempt to mitigate the harm to pensioners Nick Glegg argued for the triple lock which was accepted.

Never-the less single woman pension poverty has now begun an upward trajectory and by the end of 2020 stood at 27%.

Expect to see a big rise by the end of this year as a result of the government refusing to honour their pledge over the triple lock together with a steep rise in the cost of living including fuel and food - absolute basics and essentials.

Yesterday they voted to cease the triple lock just at a time when the pensioner in poverty will feel the biggest and hardest affects.

Hetty58 Wed 17-Nov-21 00:23:08

Germanshepherdsmum, where have you been? It's very old news that austerity wasn't needed:

www.tuc.org.uk/blogs/chancellor-finally-admits-austerity-was-political-choice

Hetty58 Wed 17-Nov-21 00:28:29

Lincslass, having divorced, remarried - and taken several years off work, bringing up children, I somehow managed to have acquired two different NI numbers. By chance, an employer found out. I may have lost all my earlier pension contributions otherwise!

MaizieD Wed 17-Nov-21 00:31:49

GagaJo

They can't afford to spend on the country AND pay for all the bungs to their mates.

I'm worried about working post 60. I get no pension until 67.

The country can afford it, GagaJo. It can come from the same source as all the money the corrupt government has handed to their mates, donors and relatives. It's political will that's stopping them.

They can't connect the dots well enough to see that paying pensioners their dues would be good for the economy...

Pepper59 Wed 17-Nov-21 02:56:38

Gill T , if you read my comment I said some not all the younger generation. I have not fell for the politics of division. I know exactly how politicians love to divide and rule, but sadly I have encountered younger folks who think all pensioners are rolling in dough and bitter at the fact they still cannot afford to leave home. I really feel for young folks as there seems to be no answer as to how they ever get a place of their own. Rents where I live are unbelievable. The Pandemic meant everyone wanted to move out of the cities and into rural areas, hence driving up prices further.

Whitewavemark2 Wed 17-Nov-21 08:02:57

Inflation highest for a decade at 4.2% and this before the fuel energy rises.

Lincslass Wed 17-Nov-21 08:06:15

GillT57

Lincslass

Think I remember the austerity drive was EU led
www.bbc.co.uk/news/10162176

sigh

Why the sigh, was it not, seeing as the article gives details. Or are the BBC making it up?

Zoejory Wed 17-Nov-21 08:06:49

Tired of this. misinformation. The whole of Europe went through austerity. That was not the fault of the Conservatives in the UK.

Plenty of protests all over Europe. Google and learn

www.bbc.co.uk/news/10162176

Zoejory Wed 17-Nov-21 08:08:15

Ha! Great minds Lincslass

I was living in Germany at one point and saw for myself riots

Plenty of evidence so enough of the sighing

www.scotsman.com/news/world/violent-anti-austerity-riots-break-out-germany-1509870

Lincslass Wed 17-Nov-21 08:08:16

MaizieD

Lincslass

Think I remember the austerity drive was EU led
www.bbc.co.uk/news/10162176

The austerity drive within the eurozone was driven by the dominance of Germanic economic ideology, which demanded 'balanced' budgets and cuts in state spending.

As the UK was not in the eurozone it was at liberty to run its economy in whatever way it pleased. The German model appealed to the tories because it enabled them to justify huge cuts in state spending, to 'shrink the state', which has always been a tory objective from Thatcher onwards.

However, there are multiple economic theories about managing national economies; there is nothing particularly 'correct' about the 'austerity' model. It did, in fact, delay the UK's recovery from the depression caused by the Global financial Crisis. The economy was showing good signs of recovery prior to 201o when the Conservative/LibDem coalition came to power. This has been acknowledged by the IMF (just in case you think I'm making it up).

The most effective way to recover from a depression is for governments to spend in order to keep money circulating in the day to day economy and so stimulate business growth. This was demonstrated in the US in the 1930s when Roosevelt's 'New Deal' programme of government investment helped the US to recover faster from the 'Great Depression' than did other western countries. In the UK postwar recovery was similarly helped by ambitious government spending, as well as the US loan, particularly on the newly established NHS, infrastructure and house building programmes. Not such a good recovery as we also squandered money on trying to retain the Empire ..

We are in for another bout of ideology driven austerity, swingeing cuts to day to day public spending (which the government hopes will be masked by 'levelling up' money) all in the name of 'paying back' the money 'borrowed' to tide us over the covid crisis. Money that was, in fact, 'created' by the Bank of England and which we owe to no-one.

Thank you for the explanation, this thickie wasn’t quite sure, but better than the “sigh”.

Whitewavemark2 Wed 17-Nov-21 08:17:06

You aren’t reading the posts.

It is now accepted that austerity was not and never needed. It was a political choice that even Osborne and Cameron now publicly recognise.

JaneJudge Wed 17-Nov-21 08:19:48

I suspect it might get worse with emerging generations because of changes to family allowance/child benefit. One of my friends had no idea her NI contributions weren't being paid.

Scones Wed 17-Nov-21 09:02:59

Alexei Sayle :

"Austerity is the idea that the 2008 financial crash was caused by Wolverhampton having too many libraries."

Urmstongran Wed 17-Nov-21 09:22:44

GagaJo

They can't afford to spend on the country AND pay for all the bungs to their mates.

I'm worried about working post 60. I get no pension until 67.

Won’t you be eligible to draw your teaching pension at 55y GagaJo? That what my friend did. Plus a little private tuition saw her through nicely until she collected her state pension at 64y.

Scones Wed 17-Nov-21 09:29:09

According to the BBC the Bank of England and other forecasters expect the cost of living to keep rising until April and then stay high all through 2022. They say this isn't a blip it's a trend.

I remember Thérèse Coffey explaining that the triple lock promise was being broken as wage rises were 'artificially high' and that this was “not a real-life basis” for making a decision, given that wage inflation has been boosted by the many thousands of workers coming off the furlough scheme and returning to the payroll, which she called a “statistical anomaly”.

We are now learning that wages continue to rise and that shortage of candidates means starting salaries are rising at a the fastest rate in 24 years. There is definitely a pattern forming that would suggest Coffrey was wrong and wage rises weren't artificially high.

www.bbc.co.uk/news/business-58834559

Prices up. Pensions down. The poorest will get poorer.

Whitewavemark2 Wed 17-Nov-21 09:57:03

That to a degree means everyone drawing a pension.

MaizieD Wed 17-Nov-21 10:01:08

The most ridiculous aspect of this is that people's businesses, jobs and wages depend on other people buying their goods and services.

If money is withdrawn/withheld from the economy by cutting public spending (which, of course, includes pensions) where will the money come from for the purchase of goods and services which keeps these businesses viable?

( I could be making the same argument, about NHS funding, on the NHS thread)

Lincslass Wed 17-Nov-21 10:09:37

Hetty58

Lincslass, having divorced, remarried - and taken several years off work, bringing up children, I somehow managed to have acquired two different NI numbers. By chance, an employer found out. I may have lost all my earlier pension contributions otherwise!

The same happened with a family member, served in Armed forces, then left went to live in Germany. No trace of that service on Uk Pension records, but when claiming German pension, they found her Army records. Either our side didn’t really try, or didn’t know how to access them. Sometimes I wonder how many have missed out on money owed.

Scones Wed 17-Nov-21 10:35:10

You make a good point there MaizieD.

A large part of the economy in my town is based on the services provided to pensioners in their own homes - cleaners, hairdressers, podiatrists, gardeners, tradesmen, bin washers, window cleaners etc. The vans flying around all day tell a story of money changing hands.

Here's a whole world made up by elderly people who need help and young people depending on pensioners having enough money to provide their wage in order to support their family.

Nanny27 Wed 17-Nov-21 11:31:54

I find it unfortunate that Whitewave@'s original meaning always seems to get lost in her continual bashing of the government.

growstuff Wed 17-Nov-21 11:33:12

Urmstongran

GagaJo

They can't afford to spend on the country AND pay for all the bungs to their mates.

I'm worried about working post 60. I get no pension until 67.

Won’t you be eligible to draw your teaching pension at 55y GagaJo? That what my friend did. Plus a little private tuition saw her through nicely until she collected her state pension at 64y.

Oh yes? She would have forfeited part of her pension to draw it early. The normal pension age for teachers is now 65, although it depends when a person enters pensionable service.

MaizieD Wed 17-Nov-21 11:40:07

Nanny27

I find it unfortunate that Whitewave@'s original meaning always seems to get lost in her continual bashing of the government.

Do you think that we should all uncritically accept everything the government does? Why should we?

Whitewavemark2 Wed 17-Nov-21 11:40:17

Nanny27

I find it unfortunate that Whitewave@'s original meaning always seems to get lost in her continual bashing of the government.

My original intention was to criticise Johnson’s government. If you read it any other way, then I clearly wasn’t getting my message across.

Sheilasue Wed 17-Nov-21 11:42:00

Hate hate the nasty party, so much damage they have done, Boris makes me angry. Thatcherites that’s all they are.

SillyNanny321 Wed 17-Nov-21 11:42:46

Unfortunately I was ‘persuaded’ by my Ex to take what would have been my pension from Local Govt as a lump sum! Most of which paid for things he wanted. I then spent time bringing up our DS as their were no childcare facilities then so only worked part time! Did not realise how this would affect me as a pensioner! No proper pension, no private pension & a couple of years ago was told by a young man that I am a drain on his income as I am living on benefits! Another of his friends then said ‘ yes but all the olds are well off aren't they & own their own houses’ accusing me of lying! At my age I am sick of being treated like a scrounger, sitting in the cold as I am careful of the amount I spend on heating! Even getting DLA does not help as it takes me over the limit if I ever need Care which I will have to pay for! So thanks Boris & friends for the paltry amount we pensioners are expected to live on being one of the lowest paid pensioners in Europe & other countries!

Whitewavemark2 Wed 17-Nov-21 11:46:43

The rise in prices are going to be a real and serious issue for pensioners.

We are now importing from the EU more than we are exporting. This has had an effect on Sterling which has dropped by 20%, which of course will see at least that sort of increase in prices. Add that to inflation and you can see what is going to happen to pensioners and of course those poorer members of society. Our spending power is dropping day by day, having in turn a knock on effect on British business.

Not very clever to cease the triple lock is it?