We have repeatedly called for improvements to the pensions system and for urgent changes to the shambles that passes for our system of social care and today in the Queen’s Speech two of our proverbial buses arrived at once. The speech contained two pieces of landmark legislation: A Bill to simplify the legislative framework and funding of social care, and a Bill introducing a flat rate State Pension. Both these measures are very much welcomed by Age UK.
Improving the care and support system in England is long overdue. The complexity of the legal framework, the raft of regulations to plug gaps and the confusion many people experience when trying to navigate the existing care system tells us that care and support need reform. The Care Bill is a vital part of the changes that are necessary. However the current and future funding of adult social care is likely to be the elephant in the room throughout the progress of this Bill. Social care funding has declined by £710 million in real terms since the Government came to power in 2010. This is at the same time as the population of over 85, who are most likely to need social care, continues to rise. Budgets are falling while demand is rising. Continue reading “Queen announces landmark legislation for older people”
October 1st, the day Auto-enrolment started, may just have signalled a revolution in how we save for retirement. By 2017 every business will have to automatically contribute to and enrol all staff over the age of 22 who earn more than £8,105 into a workplace pension. When it’s fully up and running, it’s hoped that six to nine million more people will have a private pension. At Age UK, we sincerely hope it will be the nudge some people need to start saving.
Just 2.9 million people paid into a workplace pension last year, an all- time low and a deeply disturbing trend when combined with rising life expectancy. Yet more people are living longer after retirement than ever before, many of them struggling on a basic state pension of around £107.
Auto-enrolment is an important first step in reform, helping people begin to build up a nest egg for later life . But in order to fully live up to its potential, the Government has to go further and faster.
Age UK believes if auto-enrolment is to appeal more widely, particularly to those on low incomes, the Government must deliver its commitment to a flat rate pension . This should alleviate the concerns of those who fear it will jeopardise any means tested benefits they receive and give them a better idea of how much money they should expect at retirement, encouraging them to save.
Continue reading “Auto-enrolment is rolling out”