Rescuing
Democracy in the United Kingdom from our current Elected
Dictatorship
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Spin, not
face-to-face confrontations with the voters, is the Government's
chosen method of communication. Ordinary
people are dangerous. Ordinary people might ask a question
which throws a politician 'off message'; the Cabinet member
might reveal himself or herself to be a human being like
us, and not a programmed android. Worse still, he or she
might tell the truth.
Ann Leslie - Daily Mail, September
16, 2004
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Key
findings of the Adair Turner Report on Pensions
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Ageing
population
In
1959, a man who reached 65 years of age could expect to
live to 71. Today his life expectancy would be 84. By
2250, under present trends, it will be 93. At the same
tunem fertility rates have fallen to 1.7 children/woman
in England and Wales. To keep the population steady reqires
a fertility rate of more than two children/woman. As a
result, the number of pensioners is set to increase massively
while the number of people of working age shrinks. Currently,
27% of Britons over 20 are pensioners. By 2050, this will
increase to 48%.
Retirement
Age
Britons
will have no choice but to work longer. The average retirement
age will have to rise to almost 70 for men and over 67
for women to maintain pensioner living standards if taxes
or savings remain the same. More must be done to encourage
people to keep working into their 60's. That does not
necessarily mean raising the state retirement age from
65.
Taxes
and savings
If
retirement ages do not rise, workers will either have
to pay higher taxes or save more. The report warns that
state spending on pensions would have to rise from 6.1%
of gross domestic product - national income - to 11.3%.
That would mean taxes rising by £57billion, the
equivalent of 19p on the basic rate of income tax. the
alternative would be for private saving to soar from 2.2%
of GDP to 7.4%.
Final
salary pensions
These
have been in decline since the 1980's, and in the past
eight years it has become terminal. In 1995, there were
5.2million people in 'defined benefit' schemes. This is
set to plunge to just 1.6million in 20 years time. More
workers will have to rely on less generous 'defined contribution'
pensions. These are more risky, placing the burden to
save on individual rather than employers. Money going
into these schemes is typically half that of defined benefits
schemes. The trend particularly hits middle Britain.
State
system
Britain's
state pension system is among the least generous, most
complex in the world. It appeared to work well in the
past, but the collapse of private saving has exposed its
true nature. In Europe, state systems provide on average
an income of 70% of earnings, compared to just 37% in
Britain. Britain also spends less in terms of national
income than any other European nation - and the percentage
is set to fall further. At the same time, Gordon Brown's
means-tested regime acts as a disincentive for people
to put money away for retirement.
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Housing
Some
people could fund their retirement by selling their homes
and moving to a smaller place. On average, the cash released
by 'trading down' from a semi-detached house to a terrace
would be equivalent to 30% of the basic state pension.
Pensioners could take in lodgers or use equity release
schemes, which allow them to release some of the value
of their property and receive weekly payment to top up
their pension. However, those who lack pensions tend to
have fewer assets. Relying on hoursing is also a risk
because of market fluctuations.
Women
Single
women pensioners are much worse off than single men. For
those over 75, average income for men is £216/week
and for women £180/week. More than two thirds of
women receiving the basic state pension receive less than
the full amount, compared to 15% of men. Women end up
with meagre pensions because they had to give up work
for periods of their lives. The state pension is based
on how many years of National Insurance contributions
are made during a working life. Because of rising divorce
rates and women not marrying, by 2021 38% of women aged
55 to 64 will be relying on their own income. However,
women in full-time employment are more likely than men
to become members of an occupational pension scheme.
Public
Sector
Employees
in the public sector are likely to be almost the only
workers enjoying 'gold-plated' retirements provided by
pensions linked to final salary. These are almost entirely
taxpayer-funded final salary pensions. Some 4 million
teachers, firemen, police officers, NHS, Armed Forces
and Civil Service staff are members of these schemes.
Government plans to increase retirement age for many workers
from 60 to 65.
Pension
Credit Trap
The
Government has set up a Pension Credit trap which experts
say removes the incentive to save for those who earn less
than £30,000. The state pension is £79.60
for a single person, but the credit raises this to at
least £105.45. The credit is increased in line with
wages inflation, but the state pension rises more slowly
with prices inflation. so a 25-year-old earning £22,500
a year who save 10% of his salary for 35 years might buy
a pension of £16,100/year. But if the Pension Credit,
which is currently £5,483 a year, increases with
wages inflation for 35 years, the minimum level would
reach £18,279 a year..
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But
look who's sitting pretty
The
report does not mention it, but two years ago MPs awarded
themselves fast-track pensions and more benefits. They
pay 9% of their salary towards a generous taxpayer-funded
pension scheme. According to actuaries at Mercer, an MP
who serves a term of 5 years now gains pension rights
that cost £140,000 in the private sector. A backbencher
who serves 20 years earns pension rights worth £630,000.
Tony
Blair is entitled to half his final salary of £178,922
as a pension, payments beginning on leaving office. He
enjoys a non-contributory pension scheme, linked to the
Retail Prices Index, which means that, as prices rise,
so will his pension. Last year, it emerged taxpayers faced
a £25million bill to bail out MPs pensions.
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For
the health of our democracy, we, the people of the United Kingdom,
must find a way to force Mr Blair to resign
Such
defiance of the democratic process and the will of the majority
of we people of the UK, must be exposed by voters as a matter
or urgency, and not just in the two by-elections we have had this
July and the European elections in June 2004. But how can this
be done?
The
most effective way of getting our deceitful PM to resign would
be to mobilise the army of Labour MPs currently in the House of
Commons and get them to demand it, the loss of their seat to be
a penalty if they did not. All voters in Labour-held constituencies
need to write a letter along these lines to their local Labour
MPs:
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Dear
Despite
his absolute and unequivocal assurances over the past year
of the serious risk to our security of Saddam Hussein's
'weapons of mass destruction', Prime Minister Blair
has admitted, that the threat was non-existent. For that
critical error of judgement and for his gross incompetence
in handling this very important issue, I ask you to take
immediate steps to ensure that Tony Blair does the honourable
thing and resign without delay..
I
would therefore be much obliged if you would propose and
help mobilise a Parliamentary vote of 'No Confidence' in
Mr Blair which, despite Labour's huge majority, would leave
the PM with no option but to resign.
If
I get no reply to this letter, I shall assume you will continue
to support Mr Blair as our Prime Minister. In such circumstances
I shall not vote for you in the forthcoming General Election.
Signed:
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Simple,
non-violent, protest letters along these lines on a variety of
issues could be the basis for re-vitalising our democracy and
increasing voters' interest and participation in politics. Download
a printable copy of the above letter here.
There
is another way for the voice of the silent majority to be heard,
a voice that made sure broken promises would not only be revealed,
but punished in subsequent elections.
In
the year available before the General Election expected in 2005,
many topics are available as ammunition, each one asking questions.
A weapon for our purpose will be the results of Opinion Polls
in individual constituencies using ICM, NOP, Gallop, Mori
or YouGov.
Questions
suggested for this purpose are listed here.
CAST
YOUR VOTE ON A VARIETY OF OTHER IMPORTANT ISSUES HERE.
Current
and prospective Parliamentary candidates of all Parties running
for election could share a platform at public forums in every
constituency. They would be presented with the results of
polls on this issue expressed by the majority of voters in that
constituency.
The candidates could be asked if their own views and that of their
Party manifesto corresponded with the polls, and if not, how they
intended to represent the will of the majority of local voters.
Local and National Press, Radio and TV coverage would be arranged
and the results published on this web site.
Here
is another powerful strategy for using your vote effectively in
the forthcoming General Election. Send your sitting and prospective
MPs a letter defining your requirements if they want your vote.
This example deals with the proposed
EU Constitutional Treaty.
Your
letters would end: "If you do not answer
this letter, I shall take it that you intend to follow the Government
line. I shall act accordingly in the forthcoming General Election.
Or
why not create a questionnaire that you send to all the candidates
in your constituency, getting them to give yes/no answers to questions
of your choice, and ending it with the same paragraph(above).
Download
a printable example of the questionnaire.
It
is high time for the people of this United Kingdom to stop allowing
themselves to be manipulated by politicians. We need our representatives
in Parliament to genuinely reflect the view of the majority in
their own constituency, even if this means going against their
personal and/or their party's policy. While they may argue their
case, hoping to change the minds of the majority in their constituency,
they should ultimately be obliged to reflect the majority view
of those who elect them.
It
will be argued by politicians of all parties that most voters
don't have the knowledge necessary to express an opinion on important
subjects at issue, and that our vote is a form of delegated democracy.
We should argue that it is their duty to ensure that we voters
do have ready access to such information as is necessary to form
an intelligent opinion. That, after all, is one main purpose of
Opposition Parties in our Parliamentary Democracy.
Most
important of all, such proceedings would rekindle in voters their
latent interest and obligation to cast their vote, knowing that
the candidate of their choice would be more likely to act in accordance
with their wishes. A much higher turnout in elections would be
the result.
Contact
your local Party Chairman. Gain his support for setting up public
forums in your constituency on these, as well as any other relevant
topics, well before the next General Election expected in 2005.
You should then, depending on the integrity of the candidate of
your choice, feel fairly certain that your view on any subject
being debated in Parliament will more accurately be reflected
by your representative in that assembly.
