17 June 2008

Rt Hon Mike O'Brien MP

Minister of State for Pensions Reform

Capita conference – "Social exclusion of older people"

Tuesday, 17 June  2008

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Capita conference - Social exclusion of older people

It is my pleasure to join you today as we consider the essential challenges around social exclusion for older people.

This is of growing importance as we face the unique challenges of demographic change.

Ageing is inevitable – the question is how we treat each other

Conference, ageing is inevitable, however much we all as individuals might seek our dreams of Peter Pan, it cannot be done – well at least no one has found the way yet!

The only choice we therefore have is to consider how we as a collective group of people as a society will treat each other.

How we treat our older people is an important barometer of whether or not we have a society based on decency, fairness and respect.

Older people ought to be valued and respected.

Ageing must be recast in terms of opportunity and contribution, not stagnation and decline.

And we must unlock the wealth of skills and knowledge of older people.

This will become more important as the age profile of our society changes rapidly over the next fifty years.

Rising wealth, better nutrition and improved healthcare means we are, on average, living longer.

By the late 2020s nearly half of the adult population will be aged over 50.

Over the next 50 years, we will see dramatic increases in the oldest age groups.

For example, today there are about 10,000 people aged over 100.

By 2050 it is predicted this will increase to 250,000.

So King William V, who is likely to be on the throne, could be sending over 700 telegrams a day!

What does that mean?

Commercial companies need to understand it is the grey pound which matters.

And in the public sector too, we all need to respond to this change by adapting our thinking, our policies, our services and our physical environment to the needs and aspirations of our ageing population.

We must change attitudes.

Remove the barriers that impair life chances.

Barriers / Giants

Sixty years ago, William Beveridge spoke about five giants that threatened people’s independence and well being: want, disease, ignorance, squalor and idleness.

His radical proposals, taken forward by the post war Atlee Administration implemented the modern welfare state and sought to empower people to slay the five Giants.

Universal health and education, decent housing and a benefit system that provided security for those who could not work with help in finding a job for those who could.

Today, our ageing population presents us with five new Giants: Poverty, Loneliness, Frailty, Discrimination and Insecurity

Without radical action, these five Giants could become stronger as our population ages.

Like Beveridge 60 years ago, the Government must be committed to defeating the Giants.

Under the framework of our Public Service Agreement we aim to “Tackle poverty and promote greater independence and well-being in later life.”

One of 30 top priorities set by the Government, alongside tackling climate change, achieving economic prosperity, and resolving global conflicts.

For the first time a PSA targeted at the specific needs of an ageing population.

It places older people at the heart of our thinking – ensuring our policies, services and physical environment reflect their needs and aspirations.

Enabling us to work with many of you to help defeat the Giants.

Poverty

Tackling poverty has to be first.

During the 1980s, generally pensioner poverty was down in times of recession as the country suffered from boom and bust; and in the better times in the 1980s, when the economy was fluctuating upwards, pensioner poverty increased to levels as high as 4 million or 40 per cent, compared to today when it is 2.1 million (19 per cent)

When this Government came to power we said that was not acceptable.

So we are tackling the Giant of Poverty through targeted help, such as Pension Credit.

Over the last ten years, we have lifted over 1 million pensioners out of relative poverty.

For the first time, breaking the adage that being old means being poor.

We are spending over £12 billion more than if we had continued policies of 1997.

So that today, the poorest third are £2,200 a year better off than ten years ago.

But we know there is more to do to defeat poverty.

Rising fuel bills prove that; last weeks poverty numbers reinforced it.

That’s why the Chancellor announced an additional one-off payment of £100 to over 80s households and £50 to over 60s households to sit alongside the Winter Fuel Payments.

This will provide significant extra support for 9 million households, recognising the recent rises in fuel costs.

We are also making it simpler to apply for benefits.

Changes I announced last December will enable – from October – pensioners to automatically receive help with their council tax and housing costs when they apply for Pension Credit – removing the need to sign and return forms.

And we continue to target the poorest through innovative marketing campaigns, working with local councils and other organisations.

We must ensure pensioners receive all the benefits they are entitled.

So that no pensioner need go without.

For tomorrow’s pensioners, we have simplified the State Pension, the earnings link is coming back and we are removing the inequalities traditionally faced by women and carers.

I want to see more people saving for a pension.

So I am currently taking a Bill through the Commons that will enable all workers to realise the benefits of a workplace pension scheme.

Our reforms aim to see 9 million more people saving for a better retirement by 2015.

Much has been achieved, the historic pensions reforms will add to these achievements. But there is more to do.

We know that tackling poverty is crucial, but on its own, it is not enough.

So we are taking radical action to help defeat the other four giants.

Discrimination

Discrimination is the Giant that prevents far too many older people from staying in work or rejoining the labour market.

So we legislated to outlaw age discrimination in employment and vocational training from 2006.

Older people can work if they choose and can continue to play a vital part of our society whatever their age.

Currently over 1 million people have already chosen to carry on working past State Pension Age, many in part-time work – in fact recent ONS stats show record numbers are keeping working.

Our research shows that people want the choice.

And we know they have the skills, flexibility and the capacity to learn.

We are promoting the benefits of an age diverse workforce.

My own department is already operating without a retirement age for staff – we were the first in central government to do so – I want the public sector to take the lead in this.

Our policies are not about making people work until they drop.

They are about increasing choice for individuals to be able to work if they want to.

Giving people the more opportunity to work beyond State Pension Age is critical to promote equality and social justice and it is vital, as our population ages to ensure economic prosperity.

Loneliness

The third Giant we must slay may be the most difficult: Loneliness.

Defeating loneliness and social exclusion is key to enabling all older people to lead the good life in retirement.

Loneliness can affect all pensioners, often regardless of their income.

We are designing services, tailored to the needs of local populations, to enable older people to stay involved in local communities.

And want to join up the work of local authorities, charities and businesses to pilot LinkAge Plus schemes across the country.

They place older people at the heart of their design and delivery.

Focus on older people’s needs and aspirations.

And they make a really positive impact, transforming people’s lives.

Let me give you some quick examples of what we can do…

• In Tower Hamlets, people in early stages of dementia, who had been stuck in their homes in despair can now meet peers and socialise.
• In Gateshead, we are working with ActivAge groups to provide a range of social and leisure activities.

From rambling to line dancing, these opportunities have helped over 3,000 older people build social contacts as well as encouraging exercise and well being.

And the success of these projects rests on all of us – government, local authorities, charities and other partners – working together.

I recently visited an Age Concern centre in Southwark.

I saw at first hand the positive impact these projects can have on people.

Enabling older people from the local area vital opportunities to socialise and remain involved in the local community.

Crucially it gives these people the independence to live in their own homes.

It is vital that in defeating loneliness, we continue to support and expand this range of services.

Frailty

With ageing often comes a decline in health, both mental and physical.

And as people live longer we all need to address the growing giant of frailty.

The Government are building up preventative services to keep people independent in their homes and communities.

But it is also right that we review the support we give to carers and our social care services to ensure that they are more flexible and personalised.

I recognise the very valuable contribution carers make to our society.

Carers give time and effort.

We want to ensure they receive the support they need.

Some carers want to work too.

And we need to ensure they have the opportunity to join the workforce as they are able.

So our forthcoming strategy is exploring ways in which we can provide additional support and advice.

We also believe that a serious rethink is required of the care and support system for older people.

We want a new system to ensure that everyone can get help, but those in greatest need get the greatest support.

We need a more personalised service that gives individuals maximum control over their own support services.

Budgets in the hands of individuals, rather than Social Services.

Insecurity

The fifth Giant we need to slay is the insecurity that sees many older people unwilling to leave their homes, unable to participate in their communities.

Since 1997, we have invested significant resources in social housing and as a result, there are over 1 million fewer non-decent homes.

But there is more to do.

Getting older means that it can be more difficult to move about the house, but we want our homes to be places that help us adapt as we age – safe and familiar havens – not obstacle courses to be negotiated each day.

So we are building lifetime homes and neighbourhoods that adapt to the challenges of ageing.

And we are future proofing our towns and cities so that older people can use them confidently and safely.

In February the Prime Minister published Our National Strategy for Housing in an ageing society.

This strategy outlines how we will provide the right support and advice to older people to allow them to remain independent in their homes.

We will extend handyperson services, to offer that bit of help – whether changing a light bulb making minor repairs or adaptations like fixing a grab rail.

These are important steps that can make a significant difference to being able to stay at home with confidence, or to return home from a hospital stay.

To increase mobility, we are providing free bus passes to 11 million pensioners.

But some older people can feel less able to use public transport or are less willing to make trips to see friends.

So we are investigating ways of increasing mobility and access for those who are unable to use local buses.

Insecurity and anxiety can affect all of us as we get older.

We need to ensure we tackle anti-social behaviour, put more police on the streets and tackle not only crime almost as insidiously, the fear of crime.

The Government has a wide agenda on this.

We need to ensure that everyone has the opportunity to stay involved in their communities, free from worry.

Changing attitudes

We are taking action to tackle the new Giants that threaten the independence and well-being of our ageing society.

But there is more to do.

If we are to defeat these new ageing giants, it is crucial that we work together and change ingrained attitudes to older people.

We do not have all the answers:

Retirement is changing, so we must adapt.

National and local Government have key parts to play.

But citizens also have a duty to get involved in society.

In the future we will need older people to work longer and contribute more to our society.

It’s up to all of us to build a strategy for an active and vibrant ageing society – that’s the goal.