Raising the pension age will just turn 69-year-olds into the "undeserving poor"

The Institute of Directors is wrong to call for raising the pension age; it's not a magic money tree

Increasing the state pension age to pay for better pensions is a popular policy on the right. The Institute of Directors (pdf) are the latest to call for a rapid increase beyond 70.

It is easy to see the attraction. If you reduce the number of pensioners, then you can increase what each one gets from the state without putting up the pensions bill. Both employers and employees can contribute less to a pension if it is supporting fewer retirement years.

Increasing the pension age has become a magic money tree for pensions wonks as by definition they have no interest in the income needs of those yet to retire.

But while we cannot ignore the challenge of increased longevity, every increase in the pension age redistributes money from poor pensioners with shorter life expectancies to those from professional backgrounds who live longer.

And while longevity has increased for all social groups, the gap between rich and poor is growing. As the ONS say in just four years:

The gap between the health areas with the highest and lowest life expectancies at birth increased over the period from 9.8 to 11.3 years for males and from 8.2 to 10.1 years for females. At age 65, the gap increased from 6.7 to 8.5 years for men and from 6.3 to 8.3 years for women.

If you are only going to live to 75, you lose a much bigger proportion of your pension with an increase in the state pension to 70 than a centenarian will do. MPs who get on the Jubilee line at Westminster can see life expectancy drop by one year for each stop to Canning Town.

The other big problem with this policy is that it assumes that the pension losers in their late 60s can continue to work. Of course, many would welcome the opportunity to extend their working lives – and the coalition was right to abolish the statutory retirement age – but what looks attractive to knowledge workers with interesting jobs may simply not be an option, let alone a choice, for the less skilled and manual workers with dull or heavy jobs.

The differential state pension ages for men and women means that the poorest men who cannot work in their early 60s at the moment can at least claim means tested pensioner benefits before the state pension age as EU law does not allow age discrimination in benefits.

But with womens’ state pension age rapidly catching up with mens’ this loophole is closing. Soon we will have a situation where someone who is 66 will be a member of the deserving poor because they will be seen as pensioners, while 65 year olds  will still be among the work-shy scrounger unemployed category of the undeserving poor. They may be tired, worn-out and not very fit, but that will not be enough to satisfy ATOS that they cannot work.

Yet when the TUC did a detailed breakdown of the labour market position of 64 year olds before the recession we found that more than half of 64 year old men were economically inactive – some through choice, but doubtless many would prefer to be working.

Longevity increases inevitably bring change, but rapid increases in the state pension age are extremely unprogressive. Even a more gradual increase requires action to reduce health inequalities and to provide more flexible routes to retirement that end the cliff-edge between full-time work and full-time retirement. Yet employer groups were mostly opposed to scrapping the mandatory retirement age, and with continuing high unemployment, there is little pressure for creative thinking from employers about keeping older people in work.

An elderly man hoes a field in Havana: is Cuba the Institute of Directors' dream for Britain?

Nigel Stanley is the head of communications at the TUC. He blogs at ToUChstone.

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Four times Owen Smith has made sexist comments

The Labour MP for Pontypridd and Jeremy Corbyn’s Labour leadership rival has been accused of misogynist remarks. Again.

2016

Wanting to “smash” Theresa May “back on her heels”

During a speech at a campaign event, Owen Smith blithely deployed some aggressive imagery about attacking the new Prime Minister. In doing so, he included the tired sexist trope beloved of the right wing press about Theresa May’s shoes – her “kitten heels” have long been a fascination of certain tabloids:

“I’ll be honest with you, it pained me that we didn’t have the strength and the power and the vitality to smash her back on her heels and argue that these our values, these are our people, this is our language that they are seeking to steal.”

When called out on his comments by Sky’s Sophy Ridge, Smith doubled down:

“They love a bit of rhetoric, don’t they? We need a bit more robust rhetoric in our politics, I’m very much in favour of that. You’ll be getting that from me, and I absolutely stand by those comments. It’s rhetoric, of course. I don’t literally want to smash Theresa May back, just to be clear. I’m not advocating violence in any way, shape or form.”

Your mole dug around to see whether this is a common phrase, but all it could find was “set back on one’s heels”, which simply means to be shocked by something. Nothing to do with “smashing”, and anyway, Smith, or somebody on his team, should be aware that invoking May’s “heels” is lazy sexism at best, and calling on your party to “smash” a woman (particularly when you’ve been in trouble for comments about violence against women before – see below) is more than casual misogyny.

Arguing that misogyny in Labour didn’t exist before Jeremy Corbyn

Smith recently told BBC News that the party’s nastier side only appeared nine months ago:

“I think Jeremy should take a little more responsibility for what’s going on in the Labour party. After all, we didn’t have this sort of abuse and intolerance, misogyny, antisemitism in the Labour party before Jeremy Corbyn became the leader.”

Luckily for Smith, he had never experienced misogyny in his party until the moment it became politically useful to him… Or perhaps, not being the prime target, he simply wasn’t paying enough attention before then?

2015

Telling Leanne Wood she was only invited on TV because of her “gender”

Before a general election TV debate for ITV Wales last year, Smith was caught on camera telling the Plaid Cymru leader that she only appeared on Question Time because she is a woman:

Wood: “Have you ever done Question Time, Owen?”

Smith: “Nope, they keep putting you on instead.”

Wood: “I think with party balance there’d be other people they’d be putting on instead of you, wouldn’t they, rather than me?”

Smith: “I think it helps. I think your gender helps as well.”

Wood: “Yeah.”

2010

Comparing the Lib Dems’ experience of coalition to domestic violence

In a tasteless analogy, Smith wrote this for WalesHome in the first year of the Tory/Lib Dem coalition:

“The Lib Dem dowry of a maybe-referendum on AV [the alternative vote system] will seem neither adequate reward nor sufficient defence when the Tories confess their taste for domestic violence on our schools, hospitals and welfare provision.

“Surely, the Liberals will file for divorce as soon as the bruises start to show through the make-up?”

But never fear! He did eventually issue a non-apology for his offensive comments, with the classic use of “if”:

“I apologise if anyone has been offended by the metaphorical reference in this article, which I will now be editing. The reference was in a phrase describing today's Tory and Liberal cuts to domestic spending on schools and welfare as metaphorical ‘domestic violence’.”

***

A one-off sexist gaffe is bad enough in a wannabe future Labour leader. But your mole sniffs a worrying pattern in this list that suggests Smith doesn’t have a huge amount of respect for women, when it comes to political rhetoric at least. And it won’t do him any electoral favours either – it makes his condemnation of Corbynite nastiness ring rather hollow.

I'm a mole, innit.