Letters / Keep up to date
The three strong Better Together Shetland letter writing group should keep up to date with their research.
They quote an ICAS report[1] published on February 3. At least some of their questions were answered on 6 May , not by a Yes Scotland spokesperson, or even by an SNP spokesperson, but by Steve Webb, a Lib Dem MP, who happens to be the UK Government pension minister, a reliable source they would surely agree.
The Scotsman ran with a headline “State pensions would be paid after Yes vote”[2].
The UK pension minister gave evidence to the Scottish Affairs Select Committee. He made it clear irrespective of the outcome of the referendum result that all people currently in receipt of state pension and have made contributions to the UK scheme will still continue to receive the UK state pension as set by Westminster.
Payment will continue in 2016, as eligibility to receive the UK state pension is not based upon your nationality or place of residence in retirement but solely upon contributions made.
Pensioners have not been well served by the UK, the value of the basic state pension is down 20 per cent since 1950[3] relative to earnings, while Britain’s elderly are the fourth poorest in the EU[4].
Another issue raised was on cross border final salary pension schemes, which is in part a Scotland, UK and EU issue. The resolution of this issue is being held back because the UK Government has ruled out pre-negotiation of issues like this prior to the referendum vote.
Pension shortfall though is a result of a combination of issues including UK Government regulation of these schemes and the disastrous changes to tax relief rules introduced by Gordon Brown that is estimated to have transferred £225 billion to the Treasury that would have otherwise gone to these schemes.
Irrespective of the outcome of the referendum vote, the Westminster Government needs to more proactively support workers affected to address these shortfalls, allowing companies such as BAE Systems to spend £1billion on buying back[5] shares whilst having a £3billion pension deficit could be seen as a strange priority.
Brian Nugent
Chair Yes Shetland
Hamnavoe
[1] http://icas.org.uk/scotlands-pensions-future-have-our-questions-been-answered.pdf
[2] http://archive.today/2J7dt
[3] http://www.taxpayersalliance.com/economics/2008/11/new-research-pe.html
[4] http://news.bbc.co.uk/1/hi/uk/8169859.stm
[5] http://www.telegraph.co.uk/finance/newsbysector/industry/defence/9940726/BAE-freezes-managements-pay-after-earnings-fall.html
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