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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“I felt very lonely”: addressing the untold story of isolation among young mothers

With one in five young mothers lonely “all the time”, it’s time for employers and services to step up.

“Despite having my child with me all the time, I felt very lonely,” says Laura Davies. A member of an advisory panel for the Young Women’s Trust, she had her son age 20. Now, with a new report suggesting that one in five young mums “feels lonely all the time”, she’s sharing her story.

Polling commissioned by the Young Women’s Trust has highlighted the isolation that young motherhood can bring. Of course, getting out and about the same as you did before is never easy once there’s a young child in the picture. For young mothers, however, the situation can be particularly difficult.

According to the report, over a quarter of young mothers leave the house just once a week or less, with some leaving just once a month.

Aside from all the usual challenges – like wrestling a colicky infant into their jacket, or pumping milk for the trip with one hand while making sure no-one is crawling into anything dangerous with the other – young mothers are more likely to suffer from a lack of support network, or to lack the confidence to approach mother-baby groups and other organisations designed to help. In fact, some 68 per cent of young mothers said they had felt unwelcome in a parent and toddler group.

Davies paints what research suggests is a common picture.

“Motherhood had alienated me from my past. While all my friends were off forging a future for themselves, I was under a mountain of baby clothes trying to navigate my new life. Our schedules were different and it became hard to find the time.”

“No one ever tells you that when you have a child you will feel an overwhelming sense of love that you cannot describe, but also an overwhelming sense of loneliness when you realise that your life won’t be the same again.

More than half of 16 to 24-year-olds surveyed said that they felt lonelier since becoming a mother, with more than two-thirds saying they had fewer friends than before. Yet making new friends can be hard, too, especially given the judgement young mothers can face. In fact, 73 per cent of young mothers polled said they’d experienced rudeness or unpleasant behaviour when out with their children in public.

As Davies puts it, “Trying to find mum friends when your self-confidence is at rock bottom is daunting. I found it easier to reach out for support online than meet people face to face. Knowing they couldn’t judge me on my age gave me comfort.”

While online support can help, however, loneliness can still become a problem without friends to visit or a workplace to go to. Many young mothers said they would be pleased to go back to work – and would prefer to earn money rather than rely on benefits. After all, typing some invoices, or getting back on the tills, doesn’t just mean a paycheck – it’s also a change to speak to someone old enough to understand the words “type”, “invoice” and “till”.

As Young Women’s Trust chief executive Dr Carole Easton explains, “More support is needed for young mothers who want to work. This could include mentoring to help ease women’s move back into education or employment.”

But mothers going back to work don’t only have to grapple with childcare arrangements, time management and their own self-confidence – they also have to negotiate with employers. Although the 2003 Employment Act introduced the right for parents of young children to apply to work flexibly, there is no obligation for their employer to agree. (Even though 83 per cent of women surveyed by the Young Women’s Trust said flexible hours would help them find secure work, 26 per cent said they had had a request turned down.)

Dr Easton concludes: “The report recommends access to affordable childcare, better support for young women at job centres and advertising jobs on a flexible, part-time or job share basis by default.”

Stephanie Boland is digital assistant at the New Statesman. She tweets at @stephanieboland