Privatisation And Tax

In 2013 the government is making it compulsory for companies to provide private pensions to everyone; individuals will be automatically subscribed (thereby receiving monthly deductions from their wages) unless they opt out. This has the long-term intention of phasing out state pensions, allowing the government to save money. But will people who take up the offer of a private company pension - or rather, don’t make the effort to opt out - therefore pay less tax as it will no longer be required to pay for the state pension scheme? … Doubtful. The Tories tend to only cut taxes for rich people and businesses. The extra money saved will probably be re-invested into ‘infrastructure’ projects that affect national and international trade rather than local communities. Rather than saving hard-working people a bit more cash, we will instead see further developments of a third runway at Heathrow and high-speed rail that will demolish a great deal of countryside. Don’t be deceived by David Cameron saying that he will stick to his manifesto pledge of no third runway; the two year consultation period would allow him to reconsider his position by the time the next election (and new manifesto) comes around. There is a chance that I’m being overly cynical, I do have bouts of that! But I don’t like the way that pensions are being forcibly privatised, it smacks too much of Thatcherism.

 

Medical Greed

Doctors have voted this week to take industrial action in the non-urgent care sector because of proposed changes to their pensions. Under the new plans, NHS medical practitioners in England and Wales would see their retirement age rise from 65 to 68 by 2015. Contributions to pension plans would also rise, and a new doctor joining the scheme could only expect to receive £68,000 per year when retired … I’m sorry, what? Did I read that right? Doctors are preparing to strike because they will only be receiving 68 grand a year?! Most people won’t ever get anywhere near that amount! Patients should not have to suffer a loss of medical care (even if it is non-urgent) just because doctors have become greedy in their old age. The NHS is meant to be a public service, not a golden handshake freebie giveaway! And as far as the retirement age goes, when state pensions were first widely delivered to the population after World War II the retirement age was set at 65 because life expectancy at that time was less than 70. A pension was intended to give a working person some peace and quiet in their final years. Yet over the passage of time, retirement has become a period of luxurious indulgence, foreign holidays and the start of new adventures! So the fact that we are now having to redress that balance should really come as no great surprise - well, not to anyone who studies history, anyway.