People in the UK are living longer than ever before. Over the last century, average life expectancy has increased by thirty years and this trend is set to continue. Since 1997, the Government has made the welfare of people in later life a key priority. This has meant focusing on immediate needs – including income, work, health and care. There remain some major challenges, but this focus has had a significant impact for individuals, families, communities and the economy.
One of our first priorities was to address pensioner poverty. This has resulted in real improvements for everyone in later life, especially the most vulnerable. Since 1998/99 we have lifted 900,000 pensioners out of relative poverty.1 Rates of pensioner poverty are at a historically low level, and since 2004/5 for the first time pensioners have been less likely to be living in relative poverty than the population as a whole.2 In 1997 our pensioners’ income was 7 per cent below the European Union 15 average but today their income is nearly 10 per cent above.3 Recent tax and benefit changes mean that, on average, pensioner households will be £1,500 a year better off in 2009/10 than they would have been if the 1997 system had continued, and the poorest third of pensioner households will be around £2,100 a year (or around £40 per week) better off.4
Alongside this, we have sought to create the conditions to support older people who want to work. Over 1.3 million people above State Pension age are now in work5 and they report higher levels of job satisfaction than younger workers.6 The employment rate for this group has been growing faster than for younger workers and has increased by nearly half since 2000.7 The employment rate for 50-69 year olds in the first quarter of 2009 was 56.0 per cent, compared to 48.3 per cent in 1997,8 and the gap between employment rates of those aged 50-69 and the overall employment rate is now 17.4 per cent, down 7.5 percentage points since 1993.9
People are also living more later years in good health. Life expectancy at 65 is continuing to increase, and on average three years out of four over the age of 65 is spent in good or fairly good health.10 In 2005 healthy life expectancy at age 65 was around 14.7 years for women and 12.9 years for men, representing a rise of 1.4 years for women and one year for men since 1997.11
There is also strong evidence that many people are enjoying later life, with only 14 per cent disagreeing with the statement ‘I see retirement as a positive stage in my life’12 and 87 per cent expressing satisfaction with both their home and neighbourhood.13
Not everyone is yet sharing in these gains and there is much more to do to tackle inequalities, but these are significant improvements.
These changes have not happened by accident. Since 1997, we have delivered a wide-ranging policy agenda which has focused on the areas that matter most to people in later life.
We have made pensions more generous, increasing the basic State Pension by 7 per cent more than inflation since 1997. We have ensured, through Pension Credit, that no pensioner need live on less than £130 a week (in 1997 the poorest pensioners lived on £69 a week); and many of those on Pension Credit will be entitled to additional support through Housing Benefit and Council Tax Benefit. We credit low-earners and carers into the State Second Pension as if they were earning £13,000 per year so that more people can build a meaningful second pension. We established the Pension Protection Fund, the Financial Assistance Scheme and the Pensions Regulator in the Pensions Act 2004 to improve security and confidence for people with an occupational pension.
We have spent nearly £20 billion on fuel poverty benefits and programmes between 2000 and 2007/08 so that vulnerable groups including pensioners do not have to choose between staying warm and other priorities – this year alone we expect to spend nearly £3 billion helping pensioners over the winter. The Winter Fuel Payment now stands at £200 per year per household for someone aged 60-79 with an extra £100 per year per household for someone over 80. We have also pledged £300 million over three years for the poorest pensioners on Pension Credit to have central heating installed for free and to provide a £300 discount on all central heating systems for all other pensioner households that do not have one. Since 2000 people over 75 have also had free TV licences, which benefits 3.5 million pensioner households.
As well as providing a more generous state pension and other financial assistance, improving people’s options to work in later life can also increase their income. The majority of people say they would like to work for longer in some capacity,14 and in order to facilitate this we introduced legislation in 2006 to ban unjustifiable age discrimination in the workplace. In 2006 we also launched the Age Positive initiative, which works with employers to promote the retention and recruitment of older workers, their continued training and flexible retirement practices.
For the first time, people are able to draw their occupational pension while continuing to work for the same employer.15 They also have a choice to defer receiving their State Pension and receive either a lump sum or an increased State Pension.
Older People have benefited from improvements in health services and waiting times for major conditions. The 2007 stroke strategy is transforming services, and now all hospitals have stroke physicians and almost all have dedicated units. The number of early deaths from strokes in England is now amongst the lowest in the world. People over 60 can now have free eye tests (reintroduced in 1999). Since 2000, people over 65 have been offered immunisations for flu and other highly infectious diseases. Provision of certain key procedures for older people has increased strongly, for example the number of cataract operations doubled between 1997/98 and 2006/07. Waiting times for key treatments including hip replacements, audiology and cataract operations have been cut significantly, for example by two thirds for cataracts. Waiting times for admission for inpatient treatment have fallen from an average 13-week wait in 1997, to just four weeks today.
Preventative services have also been improved with major extensions to screening for breast, bowel and cervical cancer and abdominal aortic aneurysm, particularly benefiting those in their 50s, 60s and 70s. The extension of telecare was boosted in 2006 by the £80 million preventative technology grant.
To help people enjoy their later life, people aged over 60 and disabled people living in England are entitled to free off-peak bus travel.16 Similar schemes are available in Scotland, Wales and Northern Ireland. We have provided £140 million funding for local authorities to offer free swimming to people over 60. Already almost 80 per cent of councils have signed up. Since April 2000 everyone over 60 has also had free access to museums and galleries.
The actions above have been vital in addressing the needs of people in later life today. We have built on this with our first strategy for an ageing society, Opportunity Age,17 published in 2005. This included a programme of reform starting to address age discrimination, employment in later life, active ageing as part of communities, promotion of independence and control, and improved public services for older people. This has now been implemented and will continue to bring real benefits.18 In order to meet the challenges raised by demographic change, we now need to go further still. The next chapter sets out the demographic challenge, and our vision for a society for all ages. This draws on extensive analysis by Government departments, external research and a public debate about how we should prepare for our ageing society.19
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