The boring details given in previous blog on the basis of NI, only arises because it raises basic questions about Ni and State pensions and also indicates that the original intention was to set up a proper contributory pension scheme, which the present one is not and is descending steadily towards a universal welfare system.
The system needs to return to these original intentions and become a real contributory pension scheme, which is fully funded and gives returns related to contributions made by the members. Welfare should be from taxation and limited to ensure those receive it are not better off than those giving it.
This is basic common sense, together with the saying “charity begins at home”, although not against foreign aid, in many areas it does not seem to have advanced the well being of the population, only their leaders.
Contributory National Insurance should be exactly what it says, Insurance for those in work, in many cases this has been overtaken by events, medical care is now universal with insurance not needed (except abroad) and the only real areas remaining are pensions and unemployment benefit.
Both have been whittled away to a welfare benefit free for all, except of course for the mugs in work who pay the insurance. There appears to be a guilt complex in Politicians, pushed by the do-gooders to redistribute everyone else’s money to the “poor”.
A good example is the latest play on winter fuel allowance, the rich don’t need it why should they get it regardless of whether they paid for it. This was introduced because the State pension did not keep up with living costs and supplementary payments were the cheapest way out.
Who are these rich anyway, they are anyone earning over £40-50,000 per year, our skilled tradesmen, professionals, your sons or daughters, in fact anyone who has shown any initiative to get on in life, work hard and make something of themselves. The backbone of the Nation.
They will pay some £8,000 per year in tax, £5,200 in NI with their Employer, more in some cases than the big businessmen, yet they get little return for this. It is becoming a sin to work and earn money, whilst the real sinners are those that envy their progress and position.
The time to get things back in perspective is well overdue, to clearly distinguish between welfare and earned benefits and give value for money. The unfair and unjust borderlines are already extending to child benefits, bus passes and will move soon to State Pensions.
The new single tier pension is already doing this, with the abolition of second pension and SERPS rebate, why should these people who have their large defined benefit pension need a pension from the State. Ignore the fact that they have paid substantial contributions plus NI to earn these prudent levels for elderly provision.
Let us move back to “you get what you pay for” attitude, if you don’t pay into the system you can’t draw out and ensure everyone has the chance to work. The Government has failed in its duty to do this, passing it over to business, yet failing to create the atmosphere in which it can work.
It is shedding jobs like mad in order supposedly to save money, but spends more in welfare and loses the tax revenue; the real cost of State employment is half or less of the Budget figures and when account is taken of redundancy payments, welfare administration etc, the final cost probably exceeds the original wage bill.
This is additional to the demoralising effect on the individual and the Country. Work and labour is an internal cost and should not be confused with the external cost of imports or spending money abroad, where it is small in comparison, a factor used in all the faster growing economies.
School leavers and those completing further study are the worst affected and many social problems result from this, we should introduce a National Community Service and fund apprenticeships, pay adults to stay in school and University, not charge them.
After graduation I completed National Service in the Air Force and never regretted it, learning a lot and maturing, it wasn’t the best years of my life but it was useful and I gained experience. I doubt whether it would be more costly than its welfare equivalent and certainly more productive.
Work for all should be the aim and the time for shedding jobs arises when labour starts becoming scarce, it is scandalous that well qualified students are dumped on the dole queue, when the nation needs their skills. If these are not adequate make sure the educational system ensures they are.
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