Why do the Left support a right-wing policy?

One of my political heroines is probably the second most important female politician in the UK of the 20th century. If Barbara Castle had got In Place of Strife right, then there is a good chance she could've become the first female PM.

There was one policy of hers though that was anethema to me. It is supported by Campaign group MP's, and it bewilders me. Why do the Left support redistribution from the poor to the rich? Why do they support restoring the link between pensions and earnings?

I find it madness, that some in our party choose to run up the Red Flag all in the name of allowing the rich to draw bigger pensions.

This government not only decided to take 0.5% of the country's pension system (all out of private pension funds for the upper middle-class), to send waiting lists crashing in the NHS, but they have instead somehow betrayed their principles, by paying tax credits for the poorest pensioners.

Of course, Castle and the rest of the La Pensionaras, were right to mock Brown's pitiful raise of just 75p in pensions. Good in theory, terrible politically.

But of course, Castle was fighting means testing, a process that she said was degrading. To an extent, she was right. But if you want to redistribute money to the poor, you have to find them first.

Beveridge never managed to get a universal pension large enough. So people were never expected to live on the pension alone, it had to be topped up for those who had no extra money.

The basic pension has increased by around 50% in the last decade. When Castle was campaigning against Brown at the 2000 conference, this was the level (at least £90) that Age Concern said was needed for pensioners to survive on, and half of pensioners were living on less, with the basic pension standing at £67.50. Castle wanted to fritter away £11.25 billion on the top third.

True, there are problems with means testing. And Castle claimed that the 500,000 pensioners who didn't claim MIG, were too proud to claim means tested pensions. But research showed many just weren't aware of their rights. MIG is no more charity than pensions themselves.
 
By the time of the 2001 election, when there were some worries that the Tories would use the 75p decision, and highlight it on every campaign poster, the government had increased pensions by five times as much as the proposals of the Left would have increased pensions.



Yet taking 2 million pensioners out of poverty is somehow seen as unsocialist. There are many things the government has done that are unsocialist, but that is certainly not one of them. I think the government took absolutely the right decision in not restoring the link. Ironically, it is a populist policy that is now pledged to be reintroduced by the Tories, primarily because it helps their heartlands.

If New Labour had been really New Labour on pensions they would've introduced a policy that would win votes, instead of choosing the right policy. They took the latter option, and millions of people are all the better off for it.



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Re: Why do the Left support a right-wing policy? (#1)

Oh, I have also just set up a new blog at blogspot, called 'newish labour'.

Re: Why do the Left support a right-wing policy? (#2)

Have you misunderstood the policy?  I'm assuming not, so your problem is not with the link with average earnings (which the government has pledged to restore as well - and is the only fair way to ensure that pensioners are not left behind by increased earnings) but with the left's opposition to the means test.

It was a founding principle of the welfare state that pensions were a thing of right - a national, collective insurance policy - and it best works on that principle.  You can't sweep the fact of people not claiming the money and tax credits they're entitled to under the carpet merely by referring to it.  The truth is still there.

Some means testing and targetting of benefits and assistance is inevitable - but that should not be the bedrock of the system, which is a national process which everybody pays into.  Many of the socialists who supported the origins of this system were believers in a social wage - who would like to see private wealth, etc. mean less and less (just as we would like to see everyone using an excellent national health service, and excellent state schools, rather than these being there just for the poor). 

Re: Why do the Left support a right-wing policy? (#3)

Do you believe that simply by frittering away billions on the rich, that we can bribe them into not having private pensions?

For the first time, pensioner poverty is less than national poverty.

We have a progressive taxation system in this country, which is a prime factor in delivering redistribution. So why have a system which guarantees less redistribution, if the input (income tax paid) is going to be proportional to the output (the pension recieved)?

A third of the people in this country have no assets. Contrast this with the subsidy in pensions in tax relief, which totals billions of pounds.


You're right in one aspect. Services are better if there is a diverse range of people from different economic backgrounds. But it seems that if people are going to have private assets, money on pensions would be better spent targeting the poor, and helping them.


People aren't going to stop having private funds because we suddenly decide that everything has suddenly gotten a bit more universal.

Re: Why do the Left support a right-wing policy? (#4)

I agree with the original poster.  The basic idea of socialism and social democracy are that those most in need are supported by those least in need, and attempts are made to use resources effectively to raise the opportunities of those who need help most, thereby reducing poverty and need.

That means finding out who is most in need and then targetting resources at them.  We should stop talking about means testing and be positive about it as redistribution.  It should be about rights based on need, not means.

I have paid into five pension scehemes so far in my life, and I am just shy of forty.  One is the state pension. Three are final salary schemes in various public and voluntary sector jobs.  And one is a money purchase scheme with a private sector employer. 

In an economy where people do not spend all their lives in one job, there will be many people like me who have pension pots all over the place in different guises.  The offer of a pension that you pay into is part of the basics of a package that we expect all employers to offer new and existing employees.  These are all, effectively, private pension schemes, even when through the public sector because it is about money from my wages that I put in for my old age.  The state pension, I hope, is a miniscule part of my old age requirements.

Which leads me to my point.  For some people the state pension is their only bread on the table.  I have five pensions, admittedly at different levels of scale and importance to me, two of the final salary schemes were from early in my career and represent one year and three years each.  But the private sector one is 8 years.  Do I really, really, deserve money from the state linked to earnings when I have four other (and probably counting) sources of income, have a wife who also has three final salary schemes or should it be targetted at those who need it - via er, means testing and redistribution.

I worked for Barbara for while when she toured the country in the 1994 European Elections, she was lovely and the reaction we got from staff of a certain age when we stopped at service stations was a thing to behold.  And, I know she liked me.  But I was a member of party staff when she was grandstanding about pensions which was a disgrace.  The policy was old style sloganising that the left like best, because it used to work, it still should.

And I still regret that one of the last conversations I had with her was after she attempted to upstage the Prime Minister during his conference speech that year by arriving late and walking down the central corridor of the hall towards some unspecified, and already filled seat, towards the front of the stage.  She was a bit cross when I made someone move from the end of a row at the back of the hall and asked her politely to sit there, but to give her her due she did wink at me and say "well, it was worth a try".

I loved Barbara, and if the old boys had not balked at the entirely sensible trade union reforms in In Place of Strife we would not have had the Winter of Discontent and 18 years of the Tories, but on this, she was wrong.

Re: Why do the Left support a right-wing policy? (#5)

"We should stop talking about means testing and be positive about it as redistribution."

It would be interesting to see how much that idea widens the tories 20% lead 

Re: Why do the Left support a right-wing policy? (#6)

Indeed. Mainly because around 70% of the population according to opinion polls favour redistribution of wealth.

Re: Why do the Left support a right-wing policy? (#7)

I also favour redistribution of wealth, but we should do that through progressive taxation, not through a means test and through targeted benefits that people don't claim (whatever reason people have for not claiming it).

In other words, let's have more universal benefits (in the same tradition as our support for universal healthcare and education) - and let's tax people with little money less (not allow them to apply for credits which they may or may not claim - just don't tax them) and tax the rich more.