Don’t pit the young against the old in pension debate

The answer to Britain’s inequality is to lift living standards across generations, not drive them down, argues PAUL DONOVAN

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THE debate about whether the triple lock on pensions can be afforded has once again stirred.

Prime Minister Andy Burnham has put forward a new double lock, retaining the link of the rise in state pension to the greatest of price increases and 2.5 per cent. The link to earnings will be dropped. This is intended to provide some of the funding needed for a new free social care service.

Not the worst suggestion maybe, but many ask why come for the pensioners’ money, when there are hugely wealthy people and companies who could pay more tax.

There really needs to be a recognition, as to how grotesquely skewed the wealth of this country is towards a privileged few. There need to be measures taken to bring about a far more equal society.

On the state pension, predictably, the mainstream media sets the debate in terms of intergenerational conflict, namely the elderly have it all, while younger generations are denied.

The fifth-richest economy in the world cannot afford a decent pension (the one we have compares unfavourably with other European and Scandinavian countries).

The whole debate is a false construct. The pension is affordable — the National Insurance fund has been billions in credit for years. It only reduced when the last Tory government made crazy cuts to National Insurance contributions.

What is more life expectancy is no longer rising — there are also huge disparities in life expectancy depending on where you live and the circumstances. Population worldwide is in decline.

The state pension is a right, not a welfare benefit or a privilege. People have paid 35 years-plus to earn that pension. There is also little mention made of the benefits, like the billions saved in free care provided by grandparents for their children and grandchildren, the voluntary work undertaken and increasing numbers of the elderly who continue to work.

On the wider issues, there is AI — if it does wipe us all out the whole argument is a bit academic. If many jobs become redundant, the question will be what happens to the people? How will they earn a living?

Surely, given these developments the retirement age should be coming down, rather than seemingly increasingly trying to make people work until they drop.

Instead, of looking to cut the state pension on the basis of nebulous divisive arguments, the government should be looking to introduce universal basic income across generations.

This would level things up, not down, for young and old.

This is where the debate should be not on trying to impoverish the elderly and drive a wedge between young and old on pensions.

The final point is that any politician who attacks pensions and pensioners benefits is very unwise. Remember the winter fuel allowance debacle.

The bottom line is that pensioners register highest among the cohort of citizens who vote. Alienate them at your electoral peril.

The present government would do well to take note, as its opponents are already seeking to  construct an anti-elderly narrative, including the winter fuel cut and attack on pensions. They need to seek to lift all not just a few, whether they be young, old or in-between. 

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