History of Pensions

Pensions for All - a History

History of Pensions: A brief guide to the history of Pensions and the pensioner movement in or related to the United Kingdom

· 1597 Poor Law Act
Every parish was to appoint overseers of the poor to find work for the unemployed and set up parish-houses for poor people who could not support themselves. The poor laws were introduced because of the increase in poverty throughout the land. Some of the reasons

· 1601 Poor Law Act or Old Poor Law Act This remained in force until 1834 and is usually known as the Elizabethan Poor Law or Old Poor Law

· 1670s First organised pension scheme for Royal Navy Officers - the life expectancy at that time was 48.

· 1834 The Poor Law Amendment Act sometimes abbreviated to PLAA was an Act of the Parliament of the United Kingdom passed by the Whig government of Earl Grey that reformed the country's poverty relief system. While called an Amendment Act it completely replaced earlier legislation based on England's Poor Law of 1601. With reference to this earlier Act the 1834 Act is also known as the New Poor Law.

§ 1885 - Agitation for National Pension prior to General Election of 1885. Pensions mentioned at Election but no action taken.

§ 1898 - Royal Commission- Findings - 2 Million over 65, 1.3 million in want. "Nothing can be done" but it was noted that New Zealand granted pensions for over 65s of ?35p per week.

§ 1898 The Reverend Francis Herbert Stead (1857-1928) initiated the campaign that won the Old Age Pension. Meeting held on issue of pensions at Browning Hall in London.

§ 1899 Following Browning Hall Meeting, many other meetings followed in London, Newcastle, Durham, Leeds, Manchester and Birmingham and the National Pensions Committee was formed. This was linked to National Committee of Organised Labour. F.H. Stead called for a national campaign for a universal non-contributory old age pension at age 65.

The Newcastle meeting was attended by 37 delegates from Trade Unions, 29 Co-ops, 3 Trades Councils and Visitors. Unanimous demand for a Universal and non contributory pension to be funded out of general taxation.

? 1899 Charles Booth publishes a pamphlet demanding pensions at 70 with 35p for men and 25p for women

§ 1899 Joseph Chamberlain appointed a Select Committee on "aged and deserving poor" to look into the demand. ?Baulked at the idea of a Universal pension claiming to great a demand on the public purse. ?17 MPs sat on the Committee. ?However, pensions were at long last - in the public arena.

§ 1899 "Old age Pensions and poor relief" issued by the
Committee on Old Age Pensions (HD7/179),

§ 1902 George Barnes, General Secretary of the Amalgamated Society of Engineers, formed the National Committee of Organised Labour for Old Age Pension

§ 1906 A Labour Party motion advocating Old Age Pensions was approved by the House of Commons.

§ 1907 The British Constitution Association produced a pamphlet against contributory Pensions entitled "Old age Pensions- the better way" written by Sir William Chance. (HD7/41).

§ 1908 "Old-age Pensions-ways and means: a new proposal" by J. Birdsall (HD7/418)

§ 1908 "A plea for old-age Pensions" by F. Rogers (HD7/C73).

Around this time there was a proliferation of groups advocating or against pensions. Publications were issued by: the Society for Promoting Old Age Pensions, National Committee of Organised Labour for Promoting Old Age Pensions, the National Old Age Pension Trust, Committee on Old Age Pensions, Association to Advocate Contributory Insurance, National Association of Insurance Committees and the Fabian Society (Fabian Tract no.89).

· 1908 - On 1st August 1908 Lloyd George introduced the Old Age Pensions Act. The Act provided for a non-contributory old age pension for persons over the age of 70. It was enacted in January 1909 and paid to half a million who were eligible. The text of the regulations

· It paid a weekly pension of between 1s and 5s (= to 10p to 25p) a week (7s 6d = to 37.5p) for married couples).

· The level of benefit was deliberately set low to encourage workers to also make their own provision for retirement. In order to be eligible, they had to be earning less than £31.50 per year, and had to pass a 'character test'; only those with a 'good character' could receive the pensions. Those who had habitually failed to work or had been imprisoned received nothing from the scheme. Eligibility included:

· Held British nationality and lived in the country permanently since 1878

· Not be in receipt of charitable donations nor detained in a workhouse or mental health asylum

· Not served a prison term or been convicted under the Inebriates Act

· Not to have refused work when able

· A pensioner in 1909 paid about 2 shillings rent for one room.
This left 3s for food, fuel etc which would buy: coal (6d), 4 loaves of bread (6d) ¼ lb tea (6d), ½ lb sugar (1d), quart of milk (3d), 7lbs potatoes (3d), ¼ lb cheese (2d), ½ lb cheap cuts meat (3d), leaving 6d over for beer, vegetables or other expenses.

(David Lloyd George, the Chancellor of the Exchequer in the Liberal government was also an opponent of the Poor Law in Britain. He was determined to take action that in his words would "lift the shadow of the workhouse from the homes of the poor").

· 1909 "Pensions Day" 1st January - commenced first general old age pension paying a non-contributory weekly amount of between 1s and 5s (= to 10p to 25p)or (7s 6d = to 37.5p) for married couples), from age 70, on a means-tested basis. Over half a million individuals collected their first National Pensions. 1700 collected their pension in Southwark where the agitation first began in 1885, 24 years previously

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· 1912 the Liberal Publications Department issued a pamphlet entitled "The National Insurance Act and its proposals summarised and explained" (HD7/177).

· 1913 - The National Union of Conservative and Unionist Associations issued a leaflet entitled "National Insurance Act: denounced by the Friendly Society officials" in 1913 (HD7/180).

· 1919 - Pension increased to 10s (50p).

· 1921 Finance Act - tax relief granted to pension schemes satisfying certain conditions.

· 1924 - The Labour Party issued a number of pamphlets including "Labour and war Pensions" in 1924 (HD7/252) and "Labour's fight for the old folk" which outlined the development of old age Pensions.

· 1925 Contributory Pensions Act - set up a contributory State scheme for manual workers and others earning up to £250 a year. The pension was 50p a week from age 65.

· 1928 "Co-operative employees and superannuation funds" written by A.W. Petch (HD7/A31)

· 1931 the National Joint Industrial Council for the Flour Milling Industry "Group pension scheme as finally approved by the trustees" (HD7/190) (Ocupational Pensions)

· 1932 The National Industrial Alliance published "Pensions for all"(HD7/188).

· 1932 "Pension, provident and benevolent funds" Bournville Works (HD7/189) (Ocupational Pensions)

· 1935 The National Spinsters' Pensions Association was established by women textile workers in Bradford to demand contributory pensions at 55. Annie Marienne Marsland (1899-1989) was their Treasurer from 1935 to 1945. By 1938 the organisation had 125,000 members in 97 branches and produced a monthly journal entitled 'The Spinster'. They also collected 1 million signatures for a petition for their aims and were successful in lobbying for a parliamentary commission for pensions of unmarried women. This reported in 1939 and as a result the age for unmarried women's eligibility for a state pension was reduced to 60 in 1940.

· 1937 First official meeting of SOAPA (Scottish Old Age Pensioners Association) took place within the British Legion at Halls in the Canongate, Edinburgh.

· 1938 Old Age Pensions Movement formed.

· 1939 Old Age Pensions Movement handed Petition to Parliament with 2 million signatures (forerunner to Pensioners Voice)

· 1940 National Federation of Old Age Pensions Associations formed.
See notable events

· 1940 unmarried women's eligibility for a state pension was reduced to 60.

· 1941 Life Expectancy had risen for Women to 64 and Men to 59

· 1942 "Labour's fight for the old folk" which outlined the development of old age Pensions was published.

· 1942 Sir William Beveridge publishes his "Social Insurance and Allied Services" report with state welfare proposals.

· 1946 National Insurance Act - introduced contributory State pension for all. Initially Pensions were £1.30 a week for a single person and £2.10 for a married couple. Paid from age 65 for men and 60 for women, effective from 1948.

· 1947 Finance Act - limited the maximum amount of tax relief on Pensions, and the proportion that could be taken as a lump sum.

· 1948 National Federation of Old Age Pensions Associations presented their fourth Petition on November 3rd, 1948, with 2,300,000 signatures.

· 1953 Pensioners' progress: the story of the fight for the aged people of Great Britain" by E. Melling and issued by the National Federation of Old Age Pensions Associations (HD7/C8)

· 1959 National Insurance Act - introduced a top-up state Pensions scheme, based on earnings and known as the graduated pension. Covered earnings between £9 and £15 a week.

· 1959 Labour's policy for security in old age" was published HD7/C133).

· 1966 "Guide to company pension schemes" by the Labour Research Department (HD7/C135),

· 1970 Life expectancy for Women was 74 and for Men 69

· 1971 "The future for Pensions" by J. Worsden, issued by the Aims of Industry (HD7/B132)

· 1972 British Pensioners and Trade Union Action Association BP&TUAA was formally established.

· 1973 "What about the pensioners" by Jack Jones published by the Transport and General Workers Union (HD7/A30),

· 1973 The Greater London Pensioners Association was set up.

· 1975 "Financing public sector Pensions" by R. Nottage published by the Royal Institute of Public Administration (HD7/B242)

· 1975 Social Security Pensions Act - set up the State Earnings related Pension Scheme (Serps). Introduced in 1978, the scheme replaced graduated Pensions. Rules for contracting out were also introduced, whereby workers with adequate private provision can give up all or part of the benefits of Serps. In return they pay lower National Insurance contributions.

· 1979 the Joint Committee of Senior Citizens (forerunner to The National Pensioners Convention) was set up by Jack Jones.

· 1980 Social Security Act - Link between state pension increases and average earnings broken by Margaret Thatcher's Conservative government. If the link with earnings had not been broken, a basic state pension for a single pensioner would be worth about £30 a week more.

· 1985 Strathclyde Elderly Forum was formed to act as the umbrella body for local forums in the West of Scotland. This was considered to be the first Forum to be established in this way.

· 1986 Financial Services Act - set out terms and conditions under which investment business could be conducted. Changes to contracting out.

· 1988 The Greater London Forum for the Elderly (GLF) was set up as an 'umbrella' organisation for Forums in all the London Boroughs.

· 1989 - Pensioners Liaison Forum formed

· 1991/2 Maxwell scandal. Mirror newspaper proprietor Robert Maxwell used about £460m from his group's pension funds to finance business dealings.

· 1995 Pensions Act - response to Maxwell, which set up regulatory and compensation schemes.

· 1997 Gordon Brown as Chancellor removed tax credits for pension funds on company dividends. His decision wiped out up to £75billion of assets and destroyed faith in holding shares. Critics blame him for the closure of many final-salary pensions which has left retiring employees out of pocket.

· 1999 At the Annual Conference of SOAPA it was overwhelmingly agreed to drop the two words "OLD AGE" and the organisation was renamed Scottish Pensions Association.

· 1999 Introduction of Minimum Income Guarantee (MIG), income support for poorest pensioners.

· 2000 Strathclyde Elderly Forum changed it's name to West of Scotland Seniors Forum. This was a result of a proposal by Pensions 100to get rid of the inappropriate word "elderly". This helped to create a new image and led to many other forums following its example.

· 2000 The government "insulted" pensioners by offering them a 75p increase in the basic state pension. 'Lifting pensioners out of poverty? However All pensioners over 75 will receive a free TV licence.

· 2001 Barbara Castle attacked Chancellor Gordon Brown's refusal to link pensions to earnings at the Labour party conference.

· 2001 Introduction of stakeholder Pensions, a low-cost Pensions scheme aimed at people on low to average earnings and helping women save for old age

· 2001 New FRS17 accounting rules introduced by Gordon Brown -which require companies to report pension deficits (or surpluses) in the year the deficit occurred. (This is believed to have contributed to heavy losses on the Stock Exchange and exacerbated the "Pensions Crisis".)

· 2002 British pensioner Annette Carson, who lives in South Africa, failed in her legal challenge against the UK government to have her pension uprated with inflation. The case has implications for thousands of British ex-pat pensioners worldwide.

· 2002 Switch from Serps to the State Second Pension scheme.

· 2002 in May, Steve Webb MP launched SWAPP
The Support Women Against Pension Poverty campaign to join together people around the country who believe that women get a raw deal on pensions and want to do something about it.

· 2003 Introduction of the Pension Credit, which brought half a million pensioners into means-testing.

· 2003: Pension order books phased out. Those without bank accounts got cheques.

· 2004 Steve Webb Pensions Bill - State pension rights of women with a - record of reduced rate contributions

· 2004 Pensions Act introduced the Pensions Protection Fund, stronger regulation of funds and increased participation by Member Nominated Trustees.

· 2005 The Turner commission report outlining solution to the pensions impasse published on 30 November, expected to recommend a higher state pension funded by a rise in the retirement age, and an automatic national savings scheme.

· 2006 Paupers Progress by Joe Harris. With a forward by Prof. Alan Walker, it's a short history, with illustrations, of Poor Relief and the struggle to establish the Old Age Pension. Cost £3.50 (inc p&p)

· 2008 1st January - State Pension Centenary campaign launched by National Pensioners Convention

· 2008: Cheques still used to pay 400,000 pensioners, disabled and unemployed people.

· 2010 ????: Government replaces all benefit cheques with pre-paid plastic cards.

· 2010 - The Conservative and Lib Dem coalition restore the Link?

· 2010 Steve Webb MP - founder of SWAPP -appointed as Pensions Minister

· June 2010 - West of Scotland Seniors Forum - the first Seniors Forum - regretfully ceased due to shortage of funding. .

· 2011 from April 2011, the state pension would go up by the increase in average earnings, or in line with prices, or by 2.5% - whichever is highest. (Previously it would go up every April by 2.5%, or the level of the Retail Prices Index the previous September.) Lifetime Allowance and Annual Allowance are to be frozen for five years. Pension tax relief changes for high earners.

Some of these facts are based on information from the National Association of Pension Funds (NAPF).