The first old-age state pension in the UK was introduced in 1909, as part of Lloyd George’s ‘people’s budget.’ It was a mere 5 shillings a week (equal to around £19 a week at today’s prices). At the time, the idea of the government paying pensions was revolutionary. In the nineteenth century, before state welfare, old people without sufficient private savings were often forced to enter the dreaded workhouse. State pensions were therefore popular — they allowed people to avoid destitution in old age.
More than a century later, we take the state pension for granted. It is a critical element in providing income for people over 65, and helping prevent poverty among the most vulnerable members of society. However, our ageing population has made it increasingly difficult for government to fund the pension. In simple terms, people are living longer, and we have a smaller proportion of younger workers to pay for the everincreasing pension burden. This is likely to get worse. According to the EU commission, between 2010 and 2060, the ratio of people aged 60+ to those aged 20–59 will double, from 0.4 to 0.8.
Your organisation does not have access to this article.
Sign up today to give your students the edge they need to achieve their best grades with subject expertise
Subscribe
