Exclusive: Case for Judicial Review for BackTo60 challenge to government on pensions set for November 30

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Royal Courts of Justice – venue for handing in the papers for a judicial review for the 50s women

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The High Court is to hear the case for a judicial review into the government’s mishandling of the raising of the pension age for 50s women on November 30.

The court granted a two hour hearing today.This means that Michael Mansfield and his team will argue the merits of the case for a judicial review.

The Department for Work and Pensions will oppose any judicial review.  The judge  will decide whether it can go ahead.

The granting of a two hour hearing  is significant in the sense that the court has decided that the merits of both sides of the argument  must be examined thoroughly. Previously the court had thought that 30 minutes was enough to hear the arguments – suggesting that it could be turned down without much debate.

The announcement is a victory for the lawyers arguing the  case and for BackTo 60 in taking such an uncompromising stance. The government has so far refused to budge an inch in recognising the grievances of the 3.8 million women who have lost out – some of them living in dire poverty as a result.

The case will be backed up by the paper from Jackie Jones, a law professor at the University of the West England She has produced the report,  which shows that this group of women have suffered discrimination contrary to an international  convention signed by successive UK governments. It is not a legal document but it is an expert opinion.

 

A No Deal Brexit could leave nearly 500,000 expatriate Brits with frozen pensions like those living in Canada and Australia

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Last year  it looked like the 474,000 expatriates who retired to 27 European  Union countries had their pension increases protected forever and a day. A deal which meant the UK would sign up to the EU Social Security Convention  guaranteeing pension payments both to British expatriates abroad and EU citizens remaining in the UK.

There was only one caveat “nothing is agreed until everything is agreed,” which would prevent this happening and  the  government’s aim is the commitment would be reflected in the Withdrawal Agreement with the EU. This was emphasised in the White Paper on Brexit in July.

But now the spectre of a No Deal Brexit is again being raised everything is being thrown into the air. Supporters like Liam Fox talk of a country thriving on new free trade but what about the social cost? What is clear is that without a signed withdrawal treaty Britain appears to fall out of the social security convention – and as EU arrangements superseded most national arrangements the automatic rise in pensions goes as well.

The House of Commons library have just produced two new reports on the issue. One published in July on Brexit and state pensions provides an accurate summary of the present situation. You can download it here. Another published this week provides the latest analysis of frozen pensions overseas. You can get it here.

There is a current official breakdown of the situation for both  unfrozen pensions in EU countries and the Channel Islands and frozen pensions elsewhere at the end of this blog.It shows that EU  countries make up the vast majority of uprated pensions.

The government has only limited agreements with overseas countries to allow Brits who settle there to get uprated pensions. Outside the EU  the UK has agreements with Barbados; Bermuda; Bosnia-Herzegovina; Croatia; Guernsey; Isle of Man; Israel; Jamaica; Jersey; Mauritius; Montenegro; the Philippines; Serbia; Turkey; the United States of America; and, the former Yugoslav Republic of Macedonia. The rest of Europe includes Switzerland and Norway. The US agreement also covers American Samoa, Guam, the Northern Mariana Islands, Puerto Rico and the US Virgin Islands.

For those who could be confined to a frozen pension the results can be dire. And they get worse the longer you live. An expatriate living to the age of 90 in Canada would have to live on just £41.15 a week while someone who went to live in Canada in 2015 would be on just over £110.15 a week.

Ian Andexser, chairman of the Canadian Alliance of British Pensioners, said:

“The UK continue to adopt a 70 year old policy which makes no sense, is unfair and in violation of the Commonwealth charter. If you are British and live in Niagara Falls USA, you get a fully indexed pension. If you live 400 yards away in Niagara Falls , Canada, you do not!”

An even more complex situation exists in Australia where they have a means tested pension and even getting Britain to pay up part of your state pension if you have already left the country is problematic.

The latest Commons guide on frozen pensions shows campaigners – once they have lost their case for any uprating – are unlikely to get it back. Successive British governments have refused to change the rules on grounds of costs and the spurious claim that the rises caused by  British inflation rates should not apply to other countries which had different rates of inflation. If that were the case the same would apply to people living in the European Union or Mauritius where people do benefit from British inflation.

The cost to do this is about £500 million a year and opposition parties – notably the Liberal Democrats – have backed the change only to renege on it once they got into office. Indeed the only change that followed the Pensions Act that  created the new pensions system was a minute extension of the uprating to pensioners who had retired to Sark in the Channel Islands.

So Brits in the EU better keep abreast of what does happen in the EU negotiations. They need to ensure that there is an agreement with the EU. The expatriates in Australia, Canada, South Africa and Jamaica, to name   few of the frozen pension  states can only  get redress by either pressurising British politicians or by pressuring their newly adopted country to demand Britain fulfils its obligations by refusing to sign a trade deal until it does.

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Judicial Review of government’s handling of 50s women pension changes lodged at High Court

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Royal Courts of Justice – venue for handing in the papers for a judicial review for the 50s women

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Back to 60, the campaigning group  who are supported by 738,000 of the 3.9 million 50s women waiting up to six years to get their pensions, lodged a claim  at the High Court against the  Department for Work and Pensions yesterday.

This is the first stage of taking real action to put right the injustice suffered by the women ever since the government embarked on a policy of continually raising the pension age.  It will be followed by a High Court hearing where a judge will be asked to allow the review to go ahead. It is bound to be challenged by the government which is determined not to pay up but ministers will have to justify their actions.

Backto60 lodged the documents with only 48 hours to spare as the courts  start their  summer recess tomorrow and  the courts will not hear cases  until  after October 1.

The move is the culmination of action taken by the group which now involves support  on the issue from the Equality and Human Rights Commission, which intends to raise the issue at the United Nations, the Fawcett Society and  other ampaigners.

A legal statement from Binberg Peirce & Michael Mansfield QC reads:

“The basis of the legal challenge is that the pension policy implemented by successive governments in respect of women of a particular age group (those born in the 1950s) constitutes a gross injustice and is discriminatory.  The impact on the economic, social and mental well being of these women, who rightly enjoyed a perfectly legitimate expectation of satisfactory provision in retirement, has been devastating.

“The extent of individual distress and hardship is only now becoming evident through real stories of women around the UK. It is deeply ironic that all of this is done in the name of equalisation and equality, when the very means employed to achieve this are themselves discriminatory.

“It is intended that the current pension policy be subjected to both public and judicial scrutiny and, therefore, steps are now being taken towards mounting a judicial challenge.”

At the same time Stephen Lloyd, Liberal Democrat MP for Eastbourne, whose coalition government made matters worse for 50s women by backing an acceleration of the rise in pension ages, has finally got a meeting on behalf of Waspi with the Ombudsman to discuss whether there was maladministration in not informing women.

His comment is picked up by Frances Martin:

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The government is going to face challenges from all sides this autumn.

 

 

 

 

 

Revealed: The £271 billion “rape” of the National Insurance Fund that deprived 50s women of their state pension

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Guy Opperman – the current pension minister who says it is too expensive to pay the 50s women.

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The fact that 50s women  were robbed of their pensions  by raising the pension age is undeniable. But the biggest argument against putting this right has been the cost – a fact perpetually used by the present pensions minister, Guy Oppenman, who quotes the £70 billion plus figure.

Recently I discovered that successive governments had taken a decision  NOT to top up the fund as originally proposed by William Beveridge when the welfare state was set up in 1948.

What I did not know was how much money was lost. Now thanks to an extraordinary paper prepared for the National Pensioners Convention by a social security expert Tony Lynes,and still on the web, I now know. And it is staggering. You can read it here.

The paper written 12 years ago by a man I personally knew as a fount of all knowledge on the benefit system  when I was social services correspondent on the Guardian. He sadly died, aged 85, in a car accident in 2014. There is an appreciation of him in The Guardian here.

His calculation from beyond the grave is that for every year that the government decided not to contribute to the fund it was deprived of £11.3 billion. As he says: “Restoring the supplement at its pre-1981 level would bring an extra £11.3 billion a year into the Fund, enough to meet the gross cost of a £109 per week basic pension.”

We now know that virtually no money was paid into the fund by the Treasury for around 24 years from 1990 to 2014. I calculate – and this will be a conservative estimate – because it doesn’t count the reduced contributions post 1981 – that an amazing £271 billion  yes billion  extra would have been in the fund.

This would pay  more than three times over the money due to the women – and even allowed higher  state pensions for everybody else now.

Why this didn’t happen is because politicians of all three major parties took a decision not to do this. They took the decision knowing that their Parliamentary and ministerial pension pot would mean they would be some of the wealthiest pensioners in the land when they came to retire. And the taxpayer would foot their bills.

They decided the pain should fall on the electorate instead. In 1995 they knew  all the arguments about people living longer and that money paid out in state pensions would go up.

They  could have changed the rules and informed the Government Actuary  Department that they would deliberately build up a surplus in the fund – so it could pay out as people lived longer without changing the pension age.

Instead they chose the cheapest  route – raise the pension age so they won’t have to subsidise the fund- but try and keep mum so the women wouldn’t realise what they were doing.

The villains are the late Lady Thatcher, John Moore, Kenneth Clarke, Sir John Major, Tony Blair, Gordon Brown, Steve Webb and Guy Opperman. There are many others who stood by and did nothing. That is why 50s women have been left in this situation today.

 

 

Revealed: The next bill for the over 40s: Your social care tax

 

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pic credit: parliament.uk

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Without huge coverage MPs from two influential Parliamentary committees yesterday proposed a new tax system to pay for the burgeoning cost of social care.

The proposal could mean a new hike in national insurance contributions, some redistribution of money going to fund your local council, higher council, inheritance and income tax  and/or abolishing some of the existing universal pension benefits, like the heating allowance or cutting future state pension rises.

Significantly it includes making existing pensioners pay more tax particularly if they are still supplementing their pension by working.

This makes this the first serious policy proposal to deliberately tax people differently depending on their age – and exempting the millennials  at the expense of the elderly. In that it feeds into the current  and my view misconceived debate that millennials are being robbed by wealthy pensioners and the system must be changed to tax pensioners more.

The proposals may well prove to be attractive to the present government which has been trying to create an inter generational wedge between the young and old people – as a sop to the younger generation who have been burdened with huge student loan debts by government policy and can’t afford to buy a home.

No one can deny that the present system for social care is in a mess and is underfunded and it is estimated by the report  using  data from the Institute of Fiscal Studies that spending on  care needs to rise by 3.9 per cent a year just to keep the current severely means tested system which means many cannot get help. It will cost billions more if personal care like the NHS became free at the point of use.

At the moment many people are already paying for care through  local council tax. When people ask where is all the council tax  money  is going – anything from 25 pc to 57pc  is going on social care for the young and old. The average of 37.8 pc according to the report.

The government is also transferring a big tranche of business tax revenue from Whitehall  to the councils and at the same time abolishing grants – but not according to the MPs  earmarking any of this money for social care.

The MPs have done a lot of groundwork – suggesting an independent body should supervise the new earmarked tax-  and have used a citizens assembly to advise them of how they could do it-. The report can be read in full here.

MPs need to tread very carefully over their funding proposals because there is no doubt it could make matters worse for a lot of people.

For a start – and it is picked up by people they consulted – 40 year olds will probably have the expense of  large mortgages, or higher rents, the cost of bringing up children and  may find, if they have had successful careers that they are  paid enough to have to pay back student loans. So they may be even more squeezed.

They have completely ignored the plight of  3.9 million 50s women. – many being forced to work for up to six years – and would now have to pay extra insurance or tax just at the point when they find it difficult to get a highly paid job.

Also by extending national insurance contributions at a higher rate for those who still have a job after turning 65 could well hit people who have taken part time low paid jobs to make ends meet. The MPs also suggest the premium should apply to unearned income and investments held by pensioners – which amounts to a tax on pensioners savings.

The committee talks of  setting an income threshold to make sure some pensioners are exempt – but does not state what this threshold should be.

To my mind there are too many questions  that have not been answered or evaluated for the government to go ahead with this. People should remember that everybody who drew up this report was on an MPs salary of  £77,000 a year, way above many people’s incomes.

Yes we need a debate on how to fund social care – but it shouldn’t be used as part of way to drive a wedge between generations- and we shouldn’t rush into  yet another use for the National Insurance Fund when  they are so many women who have been robbed of a decent pension by the existing system.

 

 

 

 

 

Revealed: The £200,000 food bank warehouse in Amber Rudd’s Hastings constituency caused by the Universal Credit debacle

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Amber Rudd- former home secretary and MP for Hastings as the Universal Credit debacle rolls out in her constituency

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The  billion pound plus failure of the implementation of Universal Credit is rightly condemned by the National Audit Office in a report published today.

Aimed to save money, get everybody back to work, simplify a complex benefit system and to be easily implemented.  Instead it is going to cost more, is years behind schedule, discriminates against disabled and poorly educated people, and the government has plans to force the elderly not entitled to a pension to have to use it when it  changes entitlement to pension credit ( see my earlier blog here)

But it is also having appalling consequences for food banks, landlords, council and housing association tenants – as the example in Amber Rudd’s constituency ( details down below show).

In the meantime ministers today were patting themselves on the back today how successful it is while senior civil servants behind  it were awarded  bonuses worth up to £20,000 each for its botched introduction ( see an earlier blog  here and  an article in the Sunday Mirror).

The statistics are appalling. According to the NAO :

“In 2017, around one quarter (113,000) of new claims were not paid in full on time. Late payments were delayed on average by four weeks, but from January to October 2017, 40% of those affected by late payments waited in total around 11 weeks or more, and 20% waited almost five months. Despite improvements in payment timeliness, in March 2018 21% of new claimants did not receive their full entitlement on time with 13% receiving no payment on time.

The Department does not anticipate payment timeliness to improve significantly in 2018. On this basis, the NAO estimates that between 270,000 and 338,000 new claimants will not be paid in full at the end of their first assessment period throughout 2018. Those with more complex cases are more likely to be paid late.

The Department expected most claimants would have enough money to cope over the initial waiting period after their claim is submitted (previously six weeks, now five). In reality, nearly 60% of new claimants (around 56,000 a month) receive a Universal Credit advance to help them manage before receiving their first payment.But they have to pay it back which means deducting an average £43 a month from their benefit. 

But while the statistics are bad, the examples are worse.

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Hastings Foodbank

Appendix 5 of the report  reveals In  Amber Rudd’s Hastings  constituency for example, according to the NAO Hastings foodbank has increased its opening hours, needs around two tonnes of stock each week to meet demand, and is considering building more storage space, costing £200,000.”

Hastings Citizens Advice pays staff to deliver Universal Support delivered locally. It therefore needs to pay providers regardless of the number of people
that are referred for support. But its income from the Department is not guaranteed so it can’t plan

Hastings Citizens Advice is considering scaling back on what it does in order to cope with increased demand.

Similarly NHS Hastings and Rother Clinical Commissioning Group funds its local advisory services. But this takes time to identify and secure. This hampers the ability of organisations to employ high-quality advocates because of the uncertainty of future funding.

.Hastings and Rother Credit Union no longer accepts Universal Credit claimant because of the complications in dealing with the new benefit and the long time waiting for people to be paid it.

Other areas have also got problems.Landlords are carrying extra debt – Croydon’s rent
collection rate has fallen from 92% to 58%, and its bad debt provision has doubled to £8 million.
Sedgemoor Council  in County Durham reported an increasing unwillingness, even with social landlords, to take on low-income tenants or those claiming Universal Credit.

So the government has piled on misery upon misery for the claimants,. voluntary organisations, food banks, landlords, credit unions, local authorities and health services. Meanwhile ministers on excess of £100,000 a year go home to expensive houses, enjoy fine wines, expensive meals out and luxury holidays while boasting how they are helping the poor. Some sick joke. As Amyas Morse, head of the National Audit Office, said today:

“The Department has pushed ahead with Universal Credit in the face of a number of problems, but has shown a lack of regard in failing to understand the hardship faced by some claimants.

“The benefits that it set out to achieve through Universal Credit, such as increased employment and lower administration costs, are unlikely to be achieved, yet the Department has little realistic alternative but to continue with the programme and hopefully learn from past mistakes.”

 

Taking the 50s women protest to the doors of the Department of Work and Pensions

 

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The protesters outside the DWP under the #One Voice umbrella

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The campaign for justice for the 50s women denied their pensions has come home to the Department of Work and Pensions.

A group representing all shades of opinion demanding redress for the 3.7 million women who have lost out hired an old London bus to protest outside Parliament, Downing Street and Caxton House, the DWP headquarters to drive the message home.

Under the banner #One Voice it included a number of #Waspi groups from London, Chichester, Bognor Regis to name but a few. On board backing the campaign was the Barnet blogger, Theresa Musgrove, who runs the @brokenbarnet  website.

 

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Waspi supporters from London with a banner – the guy in the background is the DWP’s privatised security guard from G4S who was pretty accommodating given it was a surprise visit

The campaign was supported by lawyer Michael Mansfield who wants to bring a legal case against the DWP  presently represented by Guy Opperham, the pensions minister and MP for Hexham,. who is implacably opposed to giving any concessions to anybody.

He appealed for unity among the campaigners – warning that divide and rule between various factions – would mean they could be picked off by ministers.

The 50s women used a battlebus obtained by Angela Taylor to make as much noise as possible particularly in its thrice trip round Parliament Square, causing both tourists and MPs to turn their heads. No doubt the message would have got back to Japan given the number of pictures taken.

The choice of the bus added to the occasion. It was a London RT model – the workhorse of  London Transport for decades – and built pretty much at the same time as many of the 50s women were born.  Reliable, dependable and capable – it was very much symbolic of the women who have been robbed of their pensions.

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The pensions battle bus with Yvette Greenway  who works in association with #BackTo60 with her trusty loudhailer

Of course the government is still saying it will do nothing. A letter sent to Pauline Hinder by the DWP ministerial correspondence unit ( ministers  like Guy Opperham have better things to do than reply to the general public like watching the Eurovision song contest) says :

” The Government has no plans to revisit the policy on women’s State Pension age and does not intend to make further concessions….

And according to the ministers they are striking a blow for equality.

“Changes to the State Pension age put right a long lasting inequality which was based on an outdated rationale that women were dependent on their husband’s incomes.”

Bizarrely this is exactly what many of the 50s women  were dependent on – the minister is just rewriting history to suit himself.

And mindful that the ministry may soon to be taken to court for not telling people about the change they are on the defensive..

“In the years after the 1995 legislation (1995 to 2011) this equalisation was frequently reported in the media and debated at length in Parliament. People were notified with leaflets, an extensive advertising campaign was carried out, and later individual letters were posted out. Throughout this period the Department has been providing individuals with their most up-to-date State Pension age when they have requested a Pension statement.”

And also you aren’t entitled to a pension  and we can’t afford to pay it anyway. We just take your contributions and do what we like with it.

“The National Insurance scheme operates on a ‘pay-as-you-go’ basis. It is inaccurate to characterise the State Pension as an individual contract where people get out what they pay in. It is today’s contributors who pay for today’s pensioners.

“There is no surplus in the Fund that can simply be drawn upon. The Government Actuary recommends a surplus is kept in the National Insurance fund to cover day to day variations in spend. The surplus is lent to the Government while that happens – it cannot simply be spent again.”

I have a feeling that ministers may not get away with this if people continue to press them – the Conservative government can’t afford to lose 3.7 million votes when it is neck and neck with Labour.