Internet revolution A new paradigm or another bubble Commons revolt to restore pensions earnings link. The labour government experienced its third largest revolt of back bench MPs since coming to power in May 1997 when 41 MPs voted in favour of an amendment to the child support, pensions and social security bill. USA Longest economic expansion

The LABOUR government last Monday experienced its third largest revolt of back bench MPs since coming to power in May 1997 when 41 MPs voted in favour of an amendment to the Child Support, Pensions and Social Security Bill. The amendment called for the restoration of the link between average male earnings and the level of the basic state pension. This demand has been the focus of campaigning by the pensioners' movement over the last few years and the size of the revolt is a measure of the impact the campaign has made.
The amendment was defeated by 240 votes to 75 but the size of the revolt has been an embarrassment to the Government.
The Government policy has been to "target" aid only at the poorest pensioners -- in other words supplying only means-tested benefits where pensioners have to go through complicated and humiliating procedures to prove they are poor.
Chancellor Gordon Brown last month announced a link between the pensioners' guaranteed minimum income and earnings -- that means the Income Support top up on the basic pension for those who have no other income. But the basic state pension is being left to wither in value while pensioners-to-be are being pressured into taking out private pensions. The whole policy is designed to save the Government money.
It leaves pensioners at the mercy of the private pensions market with all the risks involved. And it condemns those who cannot afford a decent private pension -- women who take time out of work to care for children, those in casual work, the unemployed, the disabled and so on -- to an old age of abysmal poverty on a pitiful state pension with an Income Support top up.
Social Security Minister Jeff Rooker tried to defend Government policy, claiming that he himself had voted for the restoration of the link for much
of his time in Parliament but, he said, people had voted against restoring the link as part of Labour's overall economic package at every election
between 1983 and 1992.
Tony Benn MP warned the failure to restore the link was leading to "disillusionment, anger and frustration" among pensioners.
John McDonnell MP said: "Pensioners feel a sense of betrayal, because they always looked to the Labour Party as the champion of pensioners."
Liberal Democrat MP Paul Burstow said the basic state pension is the "quickest and most effective way" of getting money to the poorest pensioners.
One campaigning pensioner told the New Worker: "The level of this revolt is encouraging. It shows our campaign is having an effect. We must step up
our efforts. "Tony Blair and his cronies think they have it all sewn up and can get their New-Labour-Tory policies through no matter what. But things are
starting to come unravelled for them. The left is fighting back."
Meanwhile British Telecomm last week announced that it is ready to raise the retirement age to 70 or over because of a growing shortage of
management skills at senior level. The official retiring age at BT is 60.
This will affect only a handful of workers but comes after worrying proposals that the Government could cut the pensions budget by raising the
official retirement age. As things stand now this would simply add to the number of unemployed -- though unemployment benefit is even lower than the basic state pension. Many pensioners are very active, capable and willing to go on making an economic contribution to society for many years after the official retirement age.
Some would welcome the opportunity to carry on working perhaps on a part-time basis. But this should be entirely voluntary and those who feel worn out after a lifetime of hard work should be entitled to retire on a decent pension that is enough to enable them to enjoy some years of active leisure.
The Government last week made an official apology to pensioners after mistakes by the Department of Social Security over the State Earnings
Related Pension Scheme (Serps). Permanent secretary Rachel Lomax offered an apology to the Public Accounts Committee for the "deplorable" mistakes which left many approaching retirement badly advised and unaware of impending cuts in the scheme. Millions of contributors were misled and costs to the Treasury could exceed £8 billion.