13 September 2005 - Pensions debate is world-wide – Blunkett
The challenges of globalisation and demographic, social and economic change pose difficult questions for the future of pensions systems across the world, David Blunkett said today.
Speaking at the Centre for American Progress event in Washington, the Secretary of State for Work and Pensions discussed what is being done to address these issues and prepare for the future.
Mr Blunkett said:
"The debates in the US and the UK are of a slightly different nature but they are about the same fundamental challenges: Establishing the role of the state in delivering affordable and sustainable social security; finding the best way to protect employer based pensions – and to support individuals themselves in planning and building their own retirement security.
"Across the EU, the total working age population is set to fall by 7% over the next 25 years. By contrast the population over 65 is set to increase by over 50%. In our own National Pensions Debate we have set out the particular challenges we face on our side of the Atlantic and my ministerial team and I are travelling the country, sharing these challenges and listening to people’s views. These are emotive issues and it is only by learning from each other and building consensus that we can deliver long-term change."
Mr Blunkett highlighted a number of specific areas where reform was important, including the area of women’s pensions, and also discussed the role that assets should play in retirement provision.
"Much has been done by this Government since 1997 to improve the situation for people in retirement in the UK, not least by the introduction of Pension Credit which has lifted nearly 2 million out of absolute poverty. However, we recognise that there are still sections of society where much more needs to be done."
"Women in particular have found themselves the victims of a pensions system largely based on a 1940s view of society, when their roles were very different and based on dependence on their husbands. This has led to many not having been able to build up enough national insurance credits for a full state pension. I have already announced that a special report will be produced to look solely at this issue and we will also be holding a specific National Pensions Debate event to discuss its conclusions."
Mr Blunkett added:
"Tackling the growing assets divide is crucial to ensure future generations are removed from, rather than managed in, poverty. If we are to prevent future poverty as opposed to ameliorating it, the support we provide to enable people to build assets – both at an individual and a community level – will be absolutely crucial."
"Asset policies can offer unparalleled opportunity in the fight to prevent future disadvantage, stopping people falling into dependence when circumstances change, and by enabling families to build intergenerational stepping stones out of poverty."
Notes for editors
- Mr Blunkett will be meeting with the Labour and Health Secretary of States in the US and Canada where he will discuss the future of welfare provision and the pensions challenge. He will examine in detail a range of North American policies and welfare to work initiatives. The Government will publish a Green Paper on welfare reform later in the autumn.
- Speech was given at the Centre for American progress in Washington. Full text is available at http://www.dwp.gov.uk/aboutus/2005/13_09_05.asp
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