Raw deal for our pensioners if we vote NO

Alarming news has emerged this week that the North East may be getting a raw deal on their pensions if Scotland decides to stay with the UK.

The facts show that although the Scottish Government is doing everything it can to improve the welfare of the country, people in Scotland have a lower life expectancy than people living in the rest of the UK, and a one size fits all pension policy will not work in our interests.

Older people in Scotland, and indeed the North East, spend a lower portion of their lives in retirement than those in other parts of the UK, and this is a fact that Westminster governments fail to take into account.

The state pension age (SPA) for women across the UK will increase from 60 to 65 between 2010 and 2018. An increase to 66 for both men and women will be fully implemented by October 2020. A further phased increase in the SPA to 67 is planned between 2026 and 2028.

Although the Scottish government accepts that the SPA should rise to 66 in line with the UK’s existing timetable, the rapid move to 67 is a genuine concern. The lower life expectancy in Scotland compared to the UK means that Scots currently enjoy fewer years in receipt of state pensions, and this could be increased.

To address this, in a Scotland that has voted Yes, an independent commission would report to parliament within the first two years of independence on whether or not Scotland should increase the SPA to 67 between 2026 and 2028.

A recent National Institute of Economic Research publication shows that Scotland is disadvantaged by having the same state pension age as the rest of the UK.

It is not surprising then that surveys consistently show that Scots want to make decisions on pensions and welfare closer to home, in Scotland. The latest Social Attitudes Survey found that 57 per cent want the Scottish Government to have control over these areas.

There could be a fairer pension system for Scotland, and indeed the North East where hard work is rewarded, people are given the incentive to save, and pensioner poverty is tackled as a priority.

It is only a Yes vote in September’s referendum that will ensure that our pensions policy accurately reflects the lives of people in Scotland. It is only then that a pension age can be set that is appropriate for where we live.

As well as an independent commission, the SNP have promised that the single-tier pension would be set at a rate of £160 a week in 2016, which is £1.10 a week higher than the rate currently expected for the UK. Savings Credit would also be retained – which at the moment stands at £18 a week for a single person – benefiting around 9000 low income pensioners.

And we can afford a better pensions system. The amount of money spent in Scotland on social protection, which includes pensions and other welfare spending, is lower as a share of GDP than in the UK. This means that pensions are more affordable for Scotland. The Scottish Government also have a good track record on caring for the elderly. Despite extreme spending pressures over the last few years, free personal and nursing care, and concessionary travel, have been retained.

Recent research from Professor David Bell has shown that pensions in Scotland are six to eight per cent less expensive than the rest of the UK. He also demonstrated that under current UK schemes, there will be a transfer from Scotland to the rest of the UK of almost £50 million per year by 2020.

The Westminster Government has mismanaged the pensions system over many years, to the extent that an estimated 140,000 Scottish pensioners are now living in relative poverty.

Scots should be able to look forward to a full and active retirement where they are rewarded for all they have contributed during their working lives. We can do this for generations to come in an independent Scotland.