27 March 2008

Rt Hon Mike O'Brien MP

Minister of State for Pensions Reform

Shire Counties Senior Citizens forum

Thursday, 27th March 2008

[Check against delivery]

 

Vision for a rural ageing society

It’s a pleasure to join you here today at the Shire Counties Conference.

I read with interest the Shropshire Association’s mission statement:

It says you want to achieve a better life for our senior citizens so that they may enjoy not endure, the autumn of their lives.

Well, that is precisely what we want to do as well.

How we treat our older people is a measure of whether we have a society based on fairness and respect.

Older people ought to be valued.

We must recast ageing in terms of opportunity and contribution, not stagnation and decline.

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

Old age should be enjoyed and not endured.

The organisations and forums represented today are vitally important.

Because it is crucial that older people have a voice.

Working at a local level, your voice takes account of a wide spectrum of needs and aspirations of older people.

The needs of those in rural areas will sometimes be different from those in our cities and towns. 

These differences are likely to continue, with the population of rural England predicted to age faster than the population as a whole.

Figures show that over the next 25 years, the numbers of those aged over 75 will increase by 90% in rural areas compared to just 47% in urban areas.

So it is important that our policies reflect these differences.

 

Ageing society

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

And we need to wake up to that change.

Last year, for the first time there were more people aged over 65 than children in the UK.

And over the next fifty years, these changes will accelerate.

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

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

To put this in proportion, a then ageing King William V, in his sixties, could be sending over 300 telegrams a day!

 

Age over youth

So much for the culture of the young. 

All those people locked in the time warp of the 1960s celebration of youth need to wake up.

It’s not youth culture but baby boom retirees who are the important market for business.

And for politicians, it’s the pensioner who votes.

Older people are already reshaping what age means. 

For instance, SAGA recently announced that the fastest growing part of its business is activity trips for older people.

From snorkling the Great Barrier reef to skiing in the Cairngorms: the barriers of age are falling.

And commercial companies need to understand the increasing power of the grey pound.

In the public sector too, we all need to respond to the ageing society by adapting our thinking, our policies, our services and our physical environment to the needs and aspirations of older citizens.

We must continue to change attitudes and remove the barriers that impair life chances.

 

Barriers / Giants

Sixty years ago, William Beveridge – the architect of the welfare state – 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, created a modern welfare state that 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 and help in finding a job for those who could.

But times change.

Today, our ageing population presents us with five new Giants: poverty, loneliness, frailty, discrimination and insecurity

These are the key barriers that can turn the enjoyment of later life into an endurance.

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.

So we have made it one of our top priorities.

The priority is to “Tackle poverty and promote greater independence and well-being in later life.”

And it sits alongside other priorities such as tackling climate change, achieving economic prosperity, and resolving global conflicts.

Placing older people at the heart of our thinking – demanding that our policies, services and physical environment increasingly reflect their needs and aspirations.

Offering people real help to help defeat the Giants.

 

Poverty

Too many older people still live in poverty, scrimping to make ends meet to pay the council tax bill, the rising electricity and gas bills and the cost of transport – often, this means they are unable to participate in society.

For us:  the poorest come first. 

Their needs are greatest.

So we are tackling the giant of poverty through targeted help, such as Pension Credit for the poorest.

Over the last ten years, we have lifted over 1 million pensioners out of relative poverty and over 2 million out of absolute poverty.

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

But we know there is more to do.

Rising fuel bills prove that.

You will have heard the Chancellor’s announcement for 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 means those over 80 will get £400 and those over 60 will get £250 from next November.

And as the Prime Minister said yesterday in PMQs, we are also engaging with the energy industry to increase the money they provide to vulnerable households from £50m to £150m a year.

Providing lower fuel tariffs, insulation for homes and help with reducing fuel bills for the poorest.

Taken together, these measures recognise the recent rises in fuel costs.

Giving more support to nearly 9 million pensioner households and extra help to the most vulnerable.

We are also making it simpler to apply for benefits. 

Changes I announced on 17th December will enable – from this 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.

This is an important change – even though it sounds technical – it should help lift 50,000 pensioners out of poverty.

And we continue to help the poorest first.

The Pension Service provide a face-to-face benefit check, helping to reach people in isolated rural communities and offering wider support and advice such as help with insulation, mobility or installing a smoke detector.

I want to ensure pensioners receive all the benefits they are entitled to.

So that no pensioner need go without.

Today our economy is strong.  We have had unprecedented growth in the economy every quarter of the last 10 years.

And that’s important.

A strong economy enables us to triple investment in the NHS. 

You will remember the 80s and early 90s: 3 million unemployed; high inflation; double digit interest rates; cuts in public spending; massive borrowing.

The NHS left under-funded; waiting lists for cataracts operations and hip replacements growing.

Today our economy remains strong. In 1998 and 2001, other world economies went into recession. Ours grew.

Today there are problems in the American housing market which is affecting the world economy.

Britain’s economy remains well placed to deal with it.

More people in work than ever, low inflation and interest rates, public finances under control, investment in NHS tripled, waiting lists down.

We have also provided help more generally to pensioners.

The Winter Fuel Payment; free eye tests; free bus passes from next week and free TV licences for the over 75s have benefited pensioners regardless of income.

This year’s budget, as well as increasing the Winter Fuel payment, will increase the personal tax allowances for those over 65 by £1,300 and those over 75 by £1,400.

And by April 2011 no pensioner aged 75 or over will pay any tax until their income reaches £10,000.

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.

These are major changes that will help millions of pensioners, poor and not so poor.

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

Being told, by a younger manager, that you are too old for a deserved promotion at work or even to stay in a job that you are good at is horrible.

Too many older people are excluded from the workplace, even when they have vital skills and knowledge to give.

That’s why we have new laws to tackle the giant of discrimination.

We have outlawed age discrimination in employment and vocational training.

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

Currently over one million people have already chosen to carry on working past State Pension Age, many in part-time work.

Many who work past State Retirement Age have a high job satisfaction.

Our research shows that people want the choice.

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

Often they are better equipped that the young.

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.

The older person stuck at home, watching the TV, bored, talking to no one from one day to the next, feeling detached from a fast changing society and struggling to cope.

So 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.

You can be poor and lonely or rich and lonely.

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.

For example, in Gloucestershire, we have set up a network of rural agents who offer support and advice to people living in isolated communities.

It enables some to get out and about when they would otherwise be housebound.

And others that little bit of extra help to keep them actively involved in their localities.

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.

To stay mentally and physically active. 

Giving them a good reason to get up in the morning.

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 these range of services.

 

Frailty

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

We can think of the older person uneasily shuffling across the room on a zimmer frame or having a sudden panic because the onset of Alzheimer’s means he can’t quite remember the route home.

Recently, the novelist Terry Pratchett movingly described his struggle with the onset of dementia. 

Hundreds and thousands of people and their families will have to deal with it.  And the numbers will increase as our society ages.

It can happen to any of us – Harold Wilson, Ronald Reagan and millions of others.

So as people live longer we all need to address the 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.

I recently spoke at the annual Age Concern Grandparents Awards. 

I was reminded how many older people act as carers.

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.

Giving people greater control over their own lives.

Dignity in old age. Despite infirmity.

 

Insecurity

The fifth giant we need to slay is insecurity.

The older person: worried about losing his home; or wondering how to cope with reduced mobility in his home; or concerned about youths shouting and drinking in the town centre.

Fear and insecurity leaves people unwilling to leave their homes and unable to participate in their communities.

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 have now started building lifetime homes and neighbourhoods that adapt to the challenges of ageing.

This will take time to develop but we are future proofing our towns and cities so that older people can use them confidently and safely.

Last month, 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.

For instance, 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.

And we are helping to increase mobility for all pensioners by providing free bus passes from next week.

This is particularly important for those in rural or isolated communities.

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

And we are offering local authorities the autonomy to provide alternatives where, for instance there are few local buses. 

Taxi vouchers and other innovative schemes are important.

I regret that some local authorities like my own in North Warwickshire have used the bus passes as an excuse to remove the choice of taxis etc.  Ministers want these choices to stay.

Because, the key thing is to give people the choice.

So we continue to identify ways of increasing mobility.

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.

For example recorded crime in Shrewsbury and Atcham fell by over 19% between 1999 and 2006.

Theft of and from vehicles has fallen by over half since 1999.

And there are nearly 400 more police officers in the West Mercia force than in 1997.

And 170 PCSOs. The prison population is the highest in Europe and we are building more prisons.

The Government has a wide agenda on this.

Tackling crime and increasing police activity is a key to reducing insecurity.

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

 

The Giants

So those are the Giants: poverty, loneliness, frailty, discrimination and insecurity.

We have set about tackling them.  But the cost, the time, the size of the challenge means we have a lot more work to do.

 

Communications

We cannot succeed in slaying the Giants without tackling in grained and outdated attitudes to ageing.

We want to celebrate the vital contributions of older people.

Last year, we held the very first Older People’s Day on 1st October.

The day celebrated the achievements and contributions of older people.

This year, I want to build on this success.

We want the event to be bigger and better. 

And I am very pleased we are tying in with Age Concern’s Grandparents' Day.

This year, Older People’s Day will focus on intergenerational issues.

I believe that it will be an excellent opportunity to bring communities together – be it through socialising, helping or volunteering.

It will help to build trust and understanding between generations.

Our strategy is to celebrate the contributions of older people in wider society.

Helping to change entrenched attitudes towards ageing.

I would welcome your views on how we can do this and very much hope you can be involved in this event.

 

Changing attitudes

Better healthcare, a richer society means people are living longer.

We need to value the contributions older people make to Britain.

We need to remove the prejudice which stops them doing more.  We need to ensure the inform have dignity and respect.

Creating a vision for a more active and vibrant ageing society is the challenge.

And it is also our overwhelming opportunity.