Abstract
Britain, being a liberal or residual welfare state, has always been characterized by a limited role for state pensions and a heavy reliance on private pensions, both occupational and personal.1 Only in the mid 1970s, flat-rate state pensions were expanded by a substantial earnings-related second tier but this came ‘too late’ to be sustainable (Myles and Pierson, 2001). Since then, contributory state pensions have seen significant cutbacks while private provision has been forcefully promoted. Paradoxically, so I argue, the role of the state in British old-age security has not generally declined in the process, but has actually increased. This finding is similar to the ‘(de-)regulation paradox’ familiar from public utilities (see Chapter 2, in this book). In the case of pensions in Britain, the move towards ‘more state’ extends to four aspects.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
ABI–Association of British Insurers (2005) Serious About Saving. The ABI Agenda on State and Private Pension Reform. London: ABI.
Agulnik, Phil and Julian Le Grand (1998) ‘Tax Relief and Partnership in Pensions’, Fiscal Studies, 19, 403–28.
Altmann, Ros (2008) Victory again in Judicial Review Appeal, http://www.rosaltmann.com/JR_AppealVictory.htm, accessed 29 November 2009.
Banks, James, Richard Blundell, Richard Disney and Carl Emmerson (2002) ‘Retirement, Pensions and the Adequacy of Saving: A Guide to the Debate’, The Institute for Financial Studies Briefing Note No. 29, London: IFS.
Berner, Frank (2004) ‘Wohlfahrtsmarkt und wohlfahrtsstaatliches Arrangement. MarktstrukturenundsozialstaatlicheEinbettungderkapitalgedecktenAltersvorsorge in Deutschland’, REGINA-Working Paper No. 6, Bielefeld University.
Blackburn, Robin (2002) ‘The Enron Debacle and the Pension Crisis’, New Left Review, 26, 26–51.
Blake, David (2003) Pension Schemes and Pension Funds in the United Kingdom, 2nd edn. Oxford: Oxford University Press.
Blake, David, Alistair Byrne, Andrew Cairns and Kevin Dowd (2005) ‘The Stakeholder Pension Lottery: An Analysis of the Default Funds in UK Stakeholder Pension Schemes’, Pensions Institute Discussion Paper PI-0411, London: Pensions Institute.
Brewer, Mike and Carl Emmerson (2003) ‘Two Cheers for the Pensions Credit?’, The Institute for Financial Studies Briefing Note No. 39, London: IFS.
Bridgen, Paul and Traute Meyer (2005) ‘When do Benevolent Capitalists Change their Mind? Explaining the Retrenchment of Defined Benefit Pensions in Britain’, Social Policy and Administration, 39, 764–85.
Bridgen, Paul and Traute Meyer (2007) ‘The British Pension System and Social Exclusion’ in Traute Meyer, Paul Bridgen and Barbara Riedmüller (eds) Private Pensions versus Social Inclusion? Non-state Provision for Citizens at Risk in Europe. Cheltenham: Edward Elgar, 47–78.
Budd, Alan and Nigel Campbell (1998) ‘The Roles of the Public and the Private Sectors in the UK Pension System’ in Martin Feldstein (ed.) Privatizing Social Security. Chicago, London: The University of Chicago Press, 99–127.
Casey, Bernard (2003) ‘Why People Don’t Choose Private Pensions: The Impact of “Contagion”’, European Journal of Social Security, 5, 305–22.
Clasen, Jochen (2001) ‘Social Insurance and the Contributory Principle: A Paradox in Contemporary British Social Policy’, Social Policy and Administration, 35, 641–57.
Curry, Chris and Alison O’Connell (2004) Tax Relief and Incentives for Pension Saving. London: Pensions Policy Institute.
Davis, E. Philip (1997) ‘Private Pensions in OECD Countries–the United Kingdom’, OECD Labour Market and Social Policy Occasional Papers No. 21, Paris: OECD.
Davy, Ulrike (2005) ‘Systeme der nicht-staatlichen Alterssicherung in Großbritannien’ in Monika Schlachter, Ulrich Becker and Gerhard Igl (eds) Funktionen und rechtliche Ausgestaltung zusätzlicher Alterssicherung. Baden-Baden: Nomos, 35–65.
Daykin, Chris (2001) ‘Contracting-out. A Partnership between Public and Private Pensions’, PMI News, July 2001, 1–4.
DHSS –- Secretary of State for Social Services (1985a) Reform of Social Security, Vol. 1, Cm. 9517. London: HMSO.
DHSS–Secretary of State for Social Services (1985b) Reform of Social Security. Programme for Action, Cm. 9691. London: HMSO.
DSS–Secretary of State for Social Security (1998) A New Contract for Welfare: Partnership in Pensions, Cm. 4179. London: TSO.
DWP -– Department for Work and Pensions (2004) Simplicity, Security and Choice: Informed Choices for Working and Saving, Cm. 6111. London: DWP.
DWP–Department for Work and Pensions (2005a) Income Related Benefits. Estimates of Take-Up in 2002/2003. London: DWP.
DWP–Department for Work and Pensions (2005b) Pension Protection Fund, http://www.dwp.gov.uk/lifeevent/penret/penreform/4_ppf.asp, accessed 20 June 2005.
DWP –- Department for Work and Pensions (2006) Security in Retirement: Towards a New Pensions System, Cm. 6841. London: TSO.
DWP–Department for Work and Pensions (2007) Personal Accounts: A new way to save. Summary of the responses to the consultation, Cm. 7121. London: DWP.
DWP–Department for Work and Pensions (2008) Projections of Entitlement to Income Related Benefits to 2050, http://www.dwp.gov.uk/pensionsreform/pdfs/Projectionsof-entitlement-toIncomeRelatedBenefitsJune2008.pdf, accessed 2 July 2008.
Emmerson, Carl (2003) ‘Pension Reform in the United Kingdom: Increasing the Role of Private Provision?’ in Gordon L. Clark and Noel Whiteside (eds) Pension Security in the 21st Century. Redrawing the Public-Private Debate. Oxford: Oxford University Press, 168–92.
Esping-Andersen, Gøsta (1990) The Three Worlds of Welfare Capitalism. Cambridge: Polity Press.
Foot, Michael (2004) ‘The FSA: The First Six Years’, Journal of Financial Regulation and Compliance, 12, 201–5.
FSA–Financial Services Authority (2003) Towards a National Strategy for Financial Capability. London: FSA.
FSA–Financial Services Authority (2004) ‘A Basic Advice Regime for the Sale of Stakeholder Products’, Consultation Paper 04/11, London: FSA.
FSA–Financial Services Authority (2009) No Selling. No Jargon. Just the Facts about Stakeholder Pensions and Decision Trees. London: FSA.
Hannah, Leslie (1986) Inventing Retirement. The Development of Occupational Pensions in Britain. Cambridge: Cambridge University Press.
Hills, John (2004) ‘Heading for Retirement? National Insurance, State Pensions, and the Future of the Contributory Principle in the UK’, Journal of Social Policy, 33, 347–71.
HM Treasury (2007) Financial Capability: The Government’s Long-term Approach. London: HMSO.
HM Treasury and Financial Services Authority (2008) Helping You Make the Most of Your Money: A Joint Action Plan for Financial Capability. London: HM Treasury/FSA.
Hyde, Mark and John Dixon (2004) ‘“Working and Saving for Retirement”: New Labour’s Reform of Company Pensions’, Critical Social Policy, 24, 270–82.
Johnson, Paul, David Yeandle and Adrian Boulding (2010) Making Automatic Enrolment Work. A Review for the Department for Work and Pensions. Cm. 7954, London: HMSO (October 2010).
Knight, Julian (2004) Savers ‘Diving’ for State Pension Cover, http://news.bbc.co.uk/1/hi/business/4120575.stm, accessed 29 November 2009.
Leisering, Lutz (2005) ‘From Redistribution to Regulation–Regulating Private Pensions as a Challenge for Ageing Societies’, REGINA-Working Paper No. 3 (revised version January 2005), Bielefeld University.
Leisering, Lutz (2008) ‘Soziale Regulierung privater Altersvorsorge in Deutschland. Instrumente, Normen und ordnungspolitische Herausforderungen’ in Deutsche Rentenversicherung Bund (ed.) Alterssicherung im Mehr-Säulensystem. Akteure, Risiken, Regulierung, DRV-Schriften 80, 59–73.
Lynes, Tony (1997) ‘The British Case’ in Martin Rein and Eskil Wadensjö (eds) Enterprise and the Welfare State. Cheltenham: Edward Elgar, 309–51.
Mann, Kirk (2006) ‘Three Steps to Heaven? Tensions in the Management of Welfare: Retirement Pensions and Active Consumers’, Journal of Social Policy, 35, 77–96.
Marschallek, Christian (2005) ‚’Weniger (Wohlfahrts-)Staat? Britische Alterssicherungspolitik im Wandel’, Zeitschrift für Sozialreform, 51, 416–47.
Moran, Michael (2003) The British Regulatory State: High Modernism and Hyper-Innovation. Oxford: Oxford University Press.
NAPF–National Association of Pension Funds (2005) Towards a Citizen’s Pension. Final Report. London: NAPF.
Myles, John and Paul Pierson (2001) ‘The Comparative Political Economy of Pension Reform’ in Paul Pierson (ed.) The New Politics of the Welfare State. Oxford: Oxford University Press, 305–33.
Nullmeier, Frank (2003) ‘Wohlfahrtsmärkte und Bürgerengagement in der Marktgesellschaft’ in Jutta Allmendinger (ed.) Entstaatlichung und soziale Sicherheit. Verhandlungen des 31. Kongresses der Deutschen Gesellschaft für Soziologie in Leipzig 2002, Vol. 2. Opladen: Leske + Budrich, 961–74.
O’Higgins, Michael (1986) ‘Public/Private Interaction and Pension Provision’ in Martin Rein and Lee Rainwater (eds) Public/Private Interplay in Social Protection. A Comparative Study. Armonk, New York, London: Sharpe, 99–148.
OAC -– Oxford Actuaries and Consultants (2005) Contracting out of SERPS/S2P to an Appropriate Personal Pension: A Quantification of Relative Impact. Report for the Financial Services Authority. Oxford: OAC.
Parliamentary and Health Service Ombudsman (2006) Trusting in the Pensions Promise: Government Bodies and the Security of Final Salary Occupational Pensions. London: TSO.
PADA–Personal Accounts Delivery Authority (2010) ‘PADA launches new brand for the Personal Accounts scheme’, Press release, 7 January 2010, London: PADA.
Pensions Commission (2004) Pensions: Challenges and Choices. The First Report of the Pensions Commission. London: TSO.
Pensions Commission (2005) A New Pension Settlement for the Twenty-First Century. The Second Report of the Pensions Commission. London: TSO.
Pestridge, Jeff (2003) Fight to the Finish, http://www.thisismoney.co.uk/news/article.html?in_article_id=333430andin_page_id=2, accessed 29 November 2009.
PPF–Pension Protection Fund (2005) An Introductory Guide to the Pension Protection Fund. Croydon: PPF.
PPI -– Pensions Policy Institute (2005) ‘Is £5 Billion Being Taken from Pension Funds Each Year?’, PPI Briefing Note Number 18, London: PPI.
PPI–Pensions Policy Institute (2009) The Pension Primer. Updated June 2009. London: PPI.
PPI–Pension Policy Institute (2010) What Could the Coalition Government Mean for Pensions Policy? Briefing Note No. 56.
Rein, Martin and Eskil Wadensjö (1997) ‘The Emerging Role of Enterprise in Social Policy’ in Martin Rein and Eskil Wadensjö (eds) Enterprise and the Welfare State. Cheltenham: Edward Elgar, 1–31.
Ring, Patrick (2004) ‘A Critical Analysis of Depolarisation’, Journal of Financial Regulation and Compliance, 12, 248–62.
Ring, Patrick and Rodney McKinnon (2002) ‘The “Pillared-Privatisation” of Pension Provision in the European Union: The Case of the United Kingdom’, European Journal of Social Security, 4, 5–24.
Sinfield, Adrian (2000) ‘Tax Benefits in Non-State Pensions’, European Journal of Social Security, 2, 137–167.
Taylor-Gooby, Peter, Trine Larsen and Johannes Kananen (2004) ‘Market Means and Welfare Ends: The UK Welfare State Experiment’, Journal of Social Policy, 33, 573–92.
The Pensions Service (2005) State Pensions for Parents and Carers. Your Guide. London: The Pensions Service.
Timmins, Nicholas (1996) The Five Giants. A Biography of the Welfare State. London: Fontana Press.
Titmuss, Richard (1987) ‘The Social Division of Welfare: Some Reflections on the Search for Equity’ in Brian Abel-Smith and Kay Titmuss (eds) The Philosophy of Welfare. Selected Writings of Richard M. Titmuss. London, Sydney: Allen and Unwin, 39–59.
Waine, Barbara (2009) ‘New Labour and Pensions Reform: Security in Retirement?’, Social Policy and Administration, 43, 754–71.
Ward, Sue (1999) ‘Regulation of Pensions in the UK’ in Gerard Hughes and Jim Stewart (eds) The Role of the State in Pension Provision: Employer, Regulator, Provider. Boston, Dordrecht and London: Kluwer Academic Publishers, 63–73.
Ward, Sue (2003) ‘The UK and Pensions: Maverick or the Only One in Step?’ in Danny Pieters (ed.) European Social Security and Global Politics. London, The Hague, New York: Kluwer Law International, 267–77.
Which? (2005) Pensions: Contracting out, http://www.which.net/campaigns/personalfinance/savingsandpensions/contractingout.html, accessed 5 September 2005.
Whiteside, Noel (2003) ‘Historical Perspectives and the Politics of Pension Reform’ in Gordon L. Clark and Noel Whiteside (eds) Pension Security in the 21st Century. Redrawing the Public-Private Debate. Oxford: Oxford University Press, 21–43.
Editor information
Editors and Affiliations
Copyright information
© 2011 Christian Marschallek
About this chapter
Cite this chapter
Marschallek, C. (2011). Back to the State? The Public Policies of Private and Public Pensions in Britain. In: Leisering, L. (eds) The New Regulatory State. Transformations of the State. Palgrave Macmillan, London. https://doi.org/10.1057/9780230343504_5
Download citation
DOI: https://doi.org/10.1057/9780230343504_5
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-32296-1
Online ISBN: 978-0-230-34350-4
eBook Packages: Palgrave Business & Management CollectionBusiness and Management (R0)