Pensions

pension funds invest in shares and were previously able to reclaim tax paid on profits. Tory Chancellor Norman Lamont reduced this wasteful allowance from 25 to 20 per cent. Gordon Brown scrapped it.

In 1999-2000, when the top 100 UK companies had a pension deficit of £36bn, the Brown effect was small change of £5.4bn.

Where had the rest gone? Some went on “pension contribution holidays” as companies, lining directors’ pockets, stopped paying into schemes. Meanwhile, people lived longer.

Then the dot.com bubble burst in 2001-02 and the casino we call the Stock Exchange collapsed, depressing private pensions. Low interest rates that helped young people buy houses slashed annuity rates on which pensions depend.

Workers, on Tory advice, had long ago opted out of the Serps top-up scheme and that chicken came home to roost.

Tory deregulation in the Eighties urged people into speculative schemes and dodgy entrepreneurs like Robert Maxwell fleeced workers’ funds – a pretty good picture of what happens to pensions in a free market.

Meanwhile, Mr Brown toiled effectively to protect those on basic state pension. It is an outrage to link his name with robbing pensioners.

Robert Meggs, Hartlepool.

HOORAY! I’ve just received my annual notification from the Pension Service advising me that during the year 2010-11 I will get an increase in my state pension of £2.50 per week and no increase in my additional or graduated benefit.

At the age of 72 I was wondering if I can become a member of the banking fraternity and therefore be entitled to one of the large bonuses they seem to be getting for ruining the financial state of this country that I have supported all my working life.

I started working in 1954 and without any breaks or handouts retired in 2003. There must be many more people in the same position and I feel we are being badly let down be the system.

On the bright side, I am looking forward to 2013 when I get my free television licence and 2018 when I receive an extra 25p.

EV Hills, Darlington.