Means-testing pensioners is wrong, but not for the reason the right hates it

It's the old "universal benefits" chestnut again.

The Conservative MP Nick Boles has riled up the Right by suggesting that the free bus-passes and prescriptions currently awarded to all pensioners ought to be means-tested.

The Telegraph's Ian Cowie speaks for many:

No wonder many people who are sceptical about politicians’ promises regard NICs as the biggest Ponzi scheme ever. Payments made by workers this week are used to fund next weeks’ benefits payments, instead of being invested for the future.

No private sector scheme would be allowed to operate in this way – indeed, as pointed out in this space from time to time, it would be a criminal offence to do so. But a series of governments from all major parties have done just that for decades, with calamitous consequences as baby boomers – a bulge in the population that began after the last World War – reach retirement.

Two common arguments come out in this: the fact that benefits for the elderly amount to a "ponzi scheme", and that any changes to them represent "broken promises".

The first is self-evidently false. National insurance contributions pay for:

Contribution-based Jobseeker’s Allowance, Incapacity Benefit, contributory Employment and Support Allowance, Bereavement Benefits, State Retirement Pension and Maternity Allowance.

Absent from the list is "bus passes" and "prescriptions". These are paid for from general taxation, and there has never been any hint that those paying into the system now are paying for their own bus passes in the future.

Even state pensions have never been sold as a savings replacement. Although the contribution requirement makes it seem analogous to saving, it has always been paid out of that years income. When it was introduced, on January 1 1909, it had no contribution requirement at all, and although that has gradually risen to the 30 years now mandated, it remains at best a popular misconception that the government is supposed to be saving contributions to pay for future pensions. 

It may be fiscally prudent to pay for pensions from savings rather than income, but that is frankly a concern which should be taken up with Herbert Henry Asquith and those dastardly Liberals.

As for "broken promises", that is obviously the case; people have planned their lives around receiving one set of benefits, and now may not get them. But pensioners have no special claim to that argument. Just as many promises were broken to this year's school-leavers, who spent most of their childhood and early teens expecting to receive subsidised education through to the end of university, and now will not.

But if he's wrong in substance, Cowie is right in conclusion. The two benefits Boles focuses on are comparatively cheap; bus passes cost £1bn a year, with the Independent calculating that the total cost of all measures under discussion is £5bn, compared to £137bn for state pensions. Means-testing, meanwhile, is expensive, "sometimes amounting to more than the savings" according to Peter Beresford, professor of social policy at Brunel University. And that cost doesn't even take into account the fact that many of the administrative costs are shoved onto the claimant; if you have to spend an hour filling out a form, that's a real cost of the policy, but it doesn't show up on any government accounts.

As well as the economic points, there are the political. Universal benefits help remove the stigma of claiming support from the government; they shore up support for the welfare state; and they ensure that those who need help get it.

There may very well be arguments for doing away with some of these benefits entirely,  and if there are, we should hear them (for instance, the cost of bus passes would be better spent as an increase to the state pension, allowing pensioners to choose what they spend it on). But saving a pittance by restricting them only to the poorest in society won't help anyone.

25th September 1973: An old lady sitting in her kitchen, waiting to be evicted from her flat in a crumbling tenement block. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Meet Anne Marie Waters - the Ukip politician too extreme for Nigel Farage

In January 2016, Waters launched Pegida UK with former EDL frontman Steven Yaxley-Lennon (aka Tommy Robinson). 

There are few people in British political life who can be attacked from the left by Nigel Farage. Yet that is where Anne Marie Waters has found herself. And by the end of September she could well be the new leader of Ukip, a party almost synonymous with its beer-swilling, chain-smoking former leader.

Waters’s political journey is a curious one. She started out on the political left, but like Oswald Mosley before her, has since veered dramatically to the right. That, however, is where the similarities end. Waters is Irish, agnostic, a lesbian and a self-proclaimed feminist.

But it is her politics – rather than who she is – that have caused a stir among Ukip’s old guard. Former leader Paul Nuttall has said that her views make him “uncomfortable” while Farage has claimed Ukip is “finished” if, under her leadership, it becomes an anti-Islam party.

In her rhetoric, Waters echoes groups such as the English Defence League (EDL) and Britain First. She has called Islam “evil” and her leadership manifesto claims that the religion has turned Britain into a “fearful and censorious society”. Waters wants the banning of the burqa, the closure of all sharia councils and a temporary freeze on all immigration.

She started life in Dublin before moving to Germany in her teens to work as an au pair. Waters also lived in the Netherlands before returning to Britain to study journalism at Nottingham Trent University, graduating in 2003. She subsequently gained a second degree in law. It was then, she says, that she first learnt about Islam, which she claims treats women “like absolute dirt”. Now 39, Waters is a full-time campaigner who lives in Essex with her two dogs and her partner who is an accountant.

Waters’s first spell of serious activism was with the campaign group One Law for All, a secularist organisation fronted by the Iranian feminist and human rights activist Maryam Namazie. Waters resigned in November 2013 after four years with the organisation. According to Namazie, Waters left due to political disagreements over whether the group should collaborate with members of far-right groups.

In April 2014, Waters founded Sharia Watch UK and, in January 2016, she launched Pegida UK with former EDL frontman Steven Yaxley-Lennon (aka Tommy Robinson). The group was established as a British chapter of the German-based organisation and was set up to counter what it called the “Islamisation of our countries”. By the summer of 2016, it had petered out.

Waters twice stood unsuccessfully to become a Labour parliamentary candidate. Today, she says she could not back Labour due to its “betrayal of women” and “betrayal of the country” over Islam. After joining Ukip in 2014, she first ran for political office in the Lambeth council election, where she finished in ninth place. At the 2015 general election, Waters stood as the party’s candidate in Lewisham East, finishing third with 9.1 per cent of the vote. She was chosen to stand again in the 2016 London Assembly elections but was deselected after her role in Pegida UK became public. Waters was also prevented from standing in Lewisham East at the 2017 general election after Ukip’s then-leader Nuttall publicly intervened.

The current favourite of the 11 candidates standing to succeed Nuttall is deputy leader Peter Whittle, with Waters in second. Some had hoped the party’s top brass would ban her from standing but last week its national executive approved her campaign.

Due to an expected low turnout, the leadership contest is unpredictable. Last November, Nuttall was elected with just 9,622 votes. More than 1,000 new members reportedly joined Ukip in a two-week period earlier this year, prompting fears of far-right entryism.

Mike Hookem MEP has resigned as Ukip’s deputy whip over Waters’ candidacy, saying he would not “turn a blind eye” to extremism. By contrast, chief whip, MEP Stuart Agnew, is a supporter and has likened her to Joan of Arc. Waters is also working closely on her campaign with Jack Buckby, a former BNP activist and one of the few candidates to run against Labour in the by-election for Jo Cox’s former seat of Batley and Spen. Robinson is another backer.

Peculiarly for someone running to be the leader of a party, Waters does not appear to relish public attention. “I’m not a limelight person,” she recently told the Times. “I don’t like being phoned all the time.”

The journalist Jamie Bartlett, who was invited to the initial launch of Pegida UK in Luton in 2015, said of Waters: “She failed to remember the date of the demo. Her head lolled, her words were slurred, and she appeared to almost fall asleep while Tommy [Robinson] was speaking. After 10 minutes it all ground to an uneasy halt.”

In an age when authenticity is everything, it would be a mistake to underestimate yet another unconventional politician. But perhaps British Muslims shouldn’t panic about Anne Marie Waters just yet.

James Bloodworth is editor of Left Foot Forward

This article first appeared in the 17 August 2017 issue of the New Statesman, Trump goes nuclear