Chamber
Plenary, 27 Mar 2003
27 Mar 2003 · S1 · Plenary
Item of business
Closing the Opportunity Gap for Older People
At the outset, I should perhaps declare an interest as I fall into the category of older people and my opportunity gap may well deteriorate in the near future. Having said that, I am absolutely delighted that the minister is present today. I will do my best to match the passion that she promised me.
I shall not patronise older people by lecturing them on which opportunities they should pursue. It is not the job of any politician to patronise older people with half-price tennis lessons or whatever the flavour of the month happens to be. Older people are more able than politicians are to decide such issues for themselves.
However, we need to ensure that older people are free to choose their opportunities. They must be free from Government discrimination against them. Sadly, over the past few years, older people have faced substantial discrimination as a result of Government policy. Older people do not want patronising assistance; they want dignity. The fact is that the Government has eroded the basic needs and expectations of pensioners, without which talk of opportunity means nothing.
Older people need to know that they can save for a pension without the fear that they are wasting their money. Gordon Brown's raid on the pension funds is a £5 billion per annum stealth tax on pensioners. That loss of hard-earned pension deprives current and future pensioners of the opportunity of a comfortable retirement. Gordon Brown's hand in the pensioners' till is depriving older people of real opportunity. Pensioners need to keep the money that they have saved, for their dignity and for other opportunities. They need to know that, if they make modest savings, they will keep £1 of every £1 that they save.
The so-called pension credit is about to be introduced, which will extend means testing to over half of all pensioners. With time, that proportion will increase further because the credit will be linked to national average earnings while the basic state pension will continue to increase only with prices. Means testing is humiliating to pensioners. It cannot be right to extend means testing to such a huge proportion of the pensioner population. People may say, "So what?" but the effect of the proposed change will be that a typical pensioner who has an annual income of £6,000 will, in effect, face a marginal tax rate of 40 per cent, which is equivalent to the rate for higher-rate taxpayers. For every extra £1 of pension or savings income, Gordon Brown will claw back 40p, so the pensioner will end up only 60p better off before income tax is taken into account.
I shall not patronise older people by lecturing them on which opportunities they should pursue. It is not the job of any politician to patronise older people with half-price tennis lessons or whatever the flavour of the month happens to be. Older people are more able than politicians are to decide such issues for themselves.
However, we need to ensure that older people are free to choose their opportunities. They must be free from Government discrimination against them. Sadly, over the past few years, older people have faced substantial discrimination as a result of Government policy. Older people do not want patronising assistance; they want dignity. The fact is that the Government has eroded the basic needs and expectations of pensioners, without which talk of opportunity means nothing.
Older people need to know that they can save for a pension without the fear that they are wasting their money. Gordon Brown's raid on the pension funds is a £5 billion per annum stealth tax on pensioners. That loss of hard-earned pension deprives current and future pensioners of the opportunity of a comfortable retirement. Gordon Brown's hand in the pensioners' till is depriving older people of real opportunity. Pensioners need to keep the money that they have saved, for their dignity and for other opportunities. They need to know that, if they make modest savings, they will keep £1 of every £1 that they save.
The so-called pension credit is about to be introduced, which will extend means testing to over half of all pensioners. With time, that proportion will increase further because the credit will be linked to national average earnings while the basic state pension will continue to increase only with prices. Means testing is humiliating to pensioners. It cannot be right to extend means testing to such a huge proportion of the pensioner population. People may say, "So what?" but the effect of the proposed change will be that a typical pensioner who has an annual income of £6,000 will, in effect, face a marginal tax rate of 40 per cent, which is equivalent to the rate for higher-rate taxpayers. For every extra £1 of pension or savings income, Gordon Brown will claw back 40p, so the pensioner will end up only 60p better off before income tax is taken into account.
In the same item of business
The Deputy Presiding Officer (Mr George Reid):
SNP
Good morning. The first item of business today is a debate on motion S1M-4064, in the name of Margaret Curran, on closing the opportunity gap for older peopl...
Tommy Sheridan (Glasgow) (SSP):
SSP
On a point of order, Presiding Officer.
The Deputy Presiding Officer:
SNP
I will finish the introduction, Mr Sheridan, and then I will call you.Those members who wish to contribute to the debate should please press their request-to...
Tommy Sheridan:
SSP
I have already informed the Presiding Officer's office that the Scottish Coalition for Justice not War has asked for the observance of a minute's silence tod...
The Deputy Presiding Officer:
SNP
We have no wish to diminish the feelings of people on the subject, Mr Sheridan, but there is a public demonstration throughout Edinburgh and I suggest that t...
The Minister for Social Justice (Ms Margaret Curran):
Lab
This is an historic moment for the Parliament—although I think that I have said that in most of the debates in which I have spoken, which have been historic ...
Mr David Davidson (North-East Scotland) (Con):
Con
I am delighted to be speaking to Margaret Curran in this, the last meeting of the Parliament in this session. Does she think that the Chancellor of the Exche...
Ms Curran:
Lab
That question gives me a pleasurable opportunity to say that perhaps the best thing that has happened to this country in the past five years has been Gordon ...
Mrs Lyndsay McIntosh (Central Scotland) (Con):
Con
Oh, but I am.
Ms Curran:
Lab
Yes, she is. We have debated poverty on many occasions in the Parliament. Those debates have been robust, enjoyable and thorough, but they have often tended ...
Mary Scanlon (Highlands and Islands) (Con):
Con
We have all received a briefing from Help the Aged this morning. Given the work that the Executive has done on fuel poverty, does the minister agree with Hel...
Ms Curran:
Lab
I have not seen the Help the Aged briefing and I am wise enough not to endorse figures that I have not seen. Let me make our position abundantly clear. We ha...
Mr Davidson:
Con
Transco is heavily involved in delivering, on behalf of the Executive, the central heating programme for pensioners and others. Representatives of Transco ha...
Ms Curran:
Lab
My God, it will be quite a debate if the Tories are going to start defending the unemployed. The Conservatives are experienced in issues relating to massive ...
Mr Kenneth Gibson (Glasgow) (SNP):
SNP
Will the minister give way?
Ms Curran:
Lab
I must press on, as I do not want to run out of time. We can pursue some of those issues later.Helping our older people to be more active is part of our stra...
Johann Lamont (Glasgow Pollok) (Lab):
Lab
The minister mentioned stereotyping older people. Does she agree that the experience of older women can be very different from that of older men? Given their...
Ms Curran:
Lab
I thank Johann Lamont for introducing another theme that is dear to my heart. In the equality strategy, we have now recognised that age is itself a key deter...
Mr Kenneth Gibson (Glasgow) (SNP):
SNP
That was a nice, cheery speech from the Minister for Social Justice. She is obviously demob happy, and I do not intend to lower the tone too much in my speec...
Mr Davidson:
Con
Does Mr Gibson agree that it would be far better to raise the basic pension level, including the amount of money that people have to apply for through the bu...
Mr Gibson:
SNP
I believe that the basic pension should be raised. However, I am astonished that the Conservatives did not address that issue when they were in power. They d...
The Deputy Presiding Officer:
SNP
You actually have about two minutes, Mr Gibson.
Mr Gibson:
SNP
In that case, I might mention it after all. Half of those in the over-65 age group live in households with no car, whereas the corresponding figure for all h...
Mr Keith Harding (Mid Scotland and Fife) (Con):
Con
At the outset, I should perhaps declare an interest as I fall into the category of older people and my opportunity gap may well deteriorate in the near futur...
Mr Gibson:
SNP
Does Mr Harding accept that the situation is actually worse than that? Once people go over the threshold, not only will they suffer a marginal tax rate of 40...
Mr Harding:
Con
I agree. I was just about to make that point, more or less. It is unfair that a pensioner on a modest but average income faces a marginal tax rate of 40 per ...
Ms Curran:
Lab
I am not sure whether either Mr Harding or I will be back in the next Parliament but I would not like to miss another opportunity to have a duel with him.
Mrs McIntosh:
Con
Yes—strip to the waist.
Ms Curran:
Lab
Let us not get carried away.I know that the Conservatives were committed to the right-to-buy policy but, as ever, their approach was half-baked. There are no...
Mr Harding:
Con
That is absolute rubbish. Whether people can afford repairs to and maintenance of their properties should be assessed by the mortgage lenders, which determin...