We believe that consideration should be given to the recent report from the New Economics Foundation.
People's Pensions: New Thinking for the 21st Century
This report suggests a "People's Pension Fund" could be a way out of
the pensions crisis plaguing the UK. It links pensions with local
investment in public services.
Written by Richard Murphy, Colin Hines and Labour MP Alan Simpson, it
proposes a new framework for pensions, based on investment in public
infrastructure projects and services, which is currently not an option
for UK pension funds.
This is an entirely new pensions framework, and it is not subject to
the ups and downs of the stock market.
As Richard Murphy says, "We have a pension crisis because
we've been investing pension cash in the wrong things. The stock market
has absorbed most UK pension investment, but less than 15 per cent of
that money has actually been used to create new investment in the UK
economy. The rest has been used for speculation. The government
now has a duty to make sure that a more reliable basis for paying
pensions is created - we can't gamble our future security again.
People's Pensions can create that security. It's a double win. It will
also mean that the current annual £16.5 billion of state subsidy
for pensions, most of which is now gambled, is better used."
Colin Hines says, "What we are providing here is a new choice
for those who want to save for their retirement. No-one would have to
buy a People's Pension. But if you did you'd have the benefit of knowing
you'd provided for your old age and helped your local economy, all at
the same time. A People's Pension Fund that could be invested in health,
transport, education, sustainable energy and social housing projects -
depending on the investor's choice - would provide the double benefit of
boosting the cash available for public services projects, at a much
lower cost than PPP or PFI options, and restocking the value of UK
pension plans so that they provide a secure and dignified
You can get a copy of the report by contacting
the New Economics Foundation, 6-8 Cole Street, London SE1 4YH
Tel: 020 7089 2800 Fax: 020 7089 2800 firstname.lastname@example.org
or you can download it free from the NEF website at