Report on meetings with Government Ministers

This brief memo has been produced to inform supporters of the outcome of two recent meetings as outlined below. The points made by the NPC at the meetings are given in bold and the replies by the ministers are shown in italics:

1. Meeting between Joe Harris, Dot Gibson and Neil Duncan-Jordan, NPC and James Purnell, Minister of State for Pensions Reform, 15 June 2006

 NPC:

• There was nothing in the recent White Paper on pension reform of immediate benefit to Britain’s existing 11m pensioners.
• The White Paper did not concede any part of the NPC’s demands for an immediate increase in the basic state pension up to the level of the Pension Credit (£114 a week), a restoration of the link with earnings and payment to be made on a universal basis to all men and women.
• The vague promise that the link between pensions and earnings may be restored in 2012-2015 will be too late for millions of today’s older people.

James Purnell:

• The White Paper was never intended to assist today’s pensioners. The government will address the needs of existing older people on an annual basis through Budgets and spending reviews.
• However, the one clear commitment in the White Paper for today’s pensioners was that means-tested Pension Credit would continue to rise in line with earnings beyond 2008.
• The government will continue to target pensioner poverty through means-tested benefits.

NPC:

• The government has used the surplus in the National Insurance fund as a source of cheap borrowing, rather than as a way of funding a higher basic state pension.
• The role of the pensions minister should be to advocate the needs of older people to the Treasury, rather than acting as the Chancellor’s messenger telling pensioners what they must accept.
• The government lacks the political will to raise additional money or spend existing monies in order to improve the basic state pension.
• Due to the government’s refusal to increase pension spending, the amount of GDP per pensioner spent on pensions is now less than that proposed by Charles Booth in the late 19^th century as part of the first campaign for a state pension.

James Purnell:

• The government has increased the amount of money spent on pensioners (but not pensions) by an additional 1% of GDP compared with the previous government. As a result pensioners are now better off.
• There is a fixed amount of money that can be spent, and the government has chosen to use it on providing means-tested benefits for the poorest pensioners. If further rises in the basic state pension were to be made, the money would have to come from somewhere. There is no surplus of money that could be used.

NPC:

• It is well documented that 5m (87%) of existing women pensioners do not qualify for a full state pension and previous government ministers have acknowledged this situation as a national scandal. Yet there is nothing in the White Paper that will benefit these pensioners.

James Purnell:

• The government has nothing planned specifically to help existing women pensions, apart from improving the take-up of Pension Credit.

NOTE: The minister was handed a letter confirming the demands of the NPC and the 14^th National Pensioners’ Parliament and he agreed to forward the NPC’s written submission as part of the White Paper’s consultation exercise and reply to the views expressed in due course.

2. Meeting between Frank Cooper and Peter Rayner, NPC and Gillian Merron, Under-Secretary of State for Transport (responsible for concessionary travel), 15 June 2006

     NPC:  

• There are still a number of problems surrounding the local-only free bus travel arrangements which came into force on April 1^st.
• Some local authorities have made little or no attempt to take advantage of this positive step towards a truly nationwide free travel scheme. The fact that the additional money was not ring fenced allowed many councils to worsen existing arrangements and implement bus only local free travel and nothing else, dropping in the process several well integrated schemes.
• As a result, some fundamental issues surrounding the current local only free bus travel arrangements still remain:

(i)         The reduction of some concessionary schemes which were more generous prior to April 2006.

(ii)        Separate funding for early morning hospital appointments when they are excluded from the concessions.

(iii)       The need for improved community transport services in rural areas.

·        In view of the announcement to introduce free national bus travel in 2008 the government must consider:

(i)                 A truly nationwide scheme should include N Ireland, Scotland and Wales.

(ii)               All bus routes should be included within the concession, including those which have stops more than 15 miles apart.

(iii)             There would be huge administrative savings from having a national concessionary travel pass, administered centrally.

Gillian Merron:

·        Any complaints surrounding the current concessionary travel arrangements can be forwarded to the minister for consideration.

·        It was right not to ring fence the additional £350m that was given to local authorities to introduce the scheme.

·        The government is seeking to expand bus usage and agrees that there are benefits to older people from having access to free travel.

·        The government has no current plans to include trams or trains in their concessionary proposals. These must be left to local discretion and funding.

·        Copies of all departmental advice and guidance to local authorities will be forwarded to the NPC.

 NOTE: The Under-Secretary of State was handed a detailed paper confirming the demands of the NPC and agreed to reply to the views expressed in due course.