Leader of the Opposition on Haringey Council, Lynne Featherstone, has today set out a three point plan for Government action to tackle the pensions injustice that many women face.

She is calling for:

• A substantial increase in the basic state pension, particularly for older pensioners; this is the only way to guarantee that help gets through to the poorest pensioners, many of whom do not claim the Government’s complex means-tested benefits;
• For the Government to write to all women in their 40s and 50s who have ever paid the married woman’s “stamp” to warn them that their pension rights may be in jeopardy;
• A major Government inquiry into the future pension prospects of today’s working women, with a promise of action to guarantee that the next generation of women pensioners do not miss out.

There are 7,800 female pensioners in Hornsey and Wood Green and 6,800 in Tottenham.

Lynne Featherstone comments,

“Pensioners are still treated by this Government as second class citizens.They have not forgotten the 75p insult.But many pensioners who happen to be women are treated differently – as third class citizens.

“If the 75p was an insult, then what of the women who acted on Government advice and now find themselves with as little as seven pence a week pension?

“Liberal Democrats believe that everyone has the right to expect dignity and security in old age.Our three point plan would help to relieve poverty among today’s pensioners and would help to ensure that future generations of women pensioners do not have to live in poverty.”

Note:
The campaign highlights the facts that:

• Among today’s pensioners, poverty rates are highest among women; almost ¾ of pensioners on Income Support are women, and elderly widows are especially poor.
• The gap between male and female pensioners’ incomes has increased since 1979.For a single male pensioner, his average income has increased by 80%.For a single female, her income has increased by 73%.Between 1997 and 2000 a single male pensioner’s income increased by 20%.Over the same period a single female pensioner’s income rose by only 12%.
• More than 1 in 3 women who are entitled to the Minimum Income Guarantee (MIG) fail to receive it. Up to 34%, or 460,000 entitled women do not receive their money.Numbers not claiming are getting bigger.In previous year, figure was 32%, or 430,000.
• Among women in their 40s and 50s, many are set to receive poor state pensions because they paid National Insurance at the special rate for married women.
• Many women who paid the reduced rate were not made aware of the consequences. Some have been promised pensions as low as 7p per week.
• This could affect up to 1.5 million in total.Up to 75,000 women are still paying the special rate.
• Women in their 20s and 30s, could face similar patterns of poverty in old age as their mothers and grandmothers; Government plans to increase the role of private provision and cut back on universal state pensions could leave many women vulnerable.
• 69% of stakeholder pensions bought by men & 31% bought by women.
• Employers moving towards ‘defined contribution’ pensions.The pension ‘pot’ must be converted into an annuity – a product that guarantees a regular income for life.Annuities pay 10-20% less to women than men.