The Labour government financial commitment to supporting failed pension schemes is now worth £12.5 billion. The real hero’s are the pension action groups, the unions and the TUC for lobbying and keeping up the pressure.

Most pension and many trade union or political meetings I have attended in recent years have had well organised pensioner pickets outside the venue (and co-incidentally it was one of my first posts). Well done also to respected pensions minister Mike O’Brien.

Of course, the Labour government has not covered itself in glory in its handling of this affair (until recently that is). However, I think that this type of intervention is “clear red water” between the Labour and Conservative Party’s.

The damage done to ordinary working people during 18 years of Tory misrule, particularly over pensions was colossal. We are still paying the price today and so will future generations.

The Tories failed to properly regulate pension’s scheme and to set up any protection for employees if their sponsor companies failed. This was due to a blind, dogmatic and misplaced trust “in the market”.

This week a close friend who suffers from serious health problems remarked that he was pleased that when he joined the company it was compulsory to join the pension scheme. If it had not been a condition of employment (bringing up 4 young children) he wouldn’t have joined. He pointed out that nowadays many people choose not to join the scheme despite its benefits and asked why did the government (Thatcher) change the law?

The only honest answer is again this fundamentalist belief in the “invisible hand” superiority of the individual against any form of collective action. Personal pensions were an absolute disastrous “choice” compared to company pension schemes.

The personal Pension accounts and its quasi-requirement for compulsory contributions from employers is a step in the right way. More please Gordon, more.