A Merry Christmas for the Very Rich

Check out this seasonal message from the ONS wealth data via TUC TouchStone

ONS wealth data: The rich just got considerably richer

18 Dec 2015, by Geoff Tily in Economics

 

In cash terms the top 10% now own £5.0 trillion of UK total household wealth, according to the latest ONS wealth and assets survey (over 2012-14). With total wealth standing at £11.1 trillion, that means they have 44.8% of it.

Last time this was calculated (2010-12), they had £4.1tn of a £9.4tn total – so owned 43.6%.

This increased share of 1.2 percentage points (ppts) is very hefty relative to the past three readings from the ONS.

With the rich gaining percentage share of the pie, others must lose.

The chart below shows the biggest losers are those in the bottom half of the wealth distribution. The lowest 50% have 8.7% this year, down 0.9ppts from 9.6% last year.
The rest of the top half of the wealth distribution (the 40% below the top 10%) also lose but with a smaller decrease of  0.3ppts.

As a result, the most wealthy are catching up with the wealth owned by all the rest of the top half of the wealth distribution – the gap is now at its narrowest yet.

That said, in cash terms, all deciles saw a cash increase in wealth (though for the lowest decile this was because of a less negative figure for financial wealth).

the poorest pay 47% of their income in tax (the richest pay 34%)

Check out post at TUC Touchstone: "Saving Our Safety Net Fact of the Week: the poorest pay 47% of their income in tax (the richest pay 34%).

Why should the poorest pay the most and don't let the Daily Mail continue to confuse income tax with all taxes and National insurance.

Note: taxes as a proportion of gross incomes

What is CDC? (and will it be contagious?)

Apologies for the tabloid style headline, but in the Queen's speech yesterday, she announced that the Government is looking to introduce Dutch style "Collective Defined Contribution" pensions (or CDC).

For the 99% of the population who don't have a clue about CDC (or pensions generally) please click on this link to a post by Nigel Stanley, in the TUC Touchstone site "What are CDC Pensions and why are they a good thing". 

For another alternative view see Michael Johnson's post for the Centre for Policy Studies called "Collective DC: the least worse option". 

Hat tip picture "Starry Night" by Vincent Van Gogh.

Another day, another reason why the ABI is a self serving cartel ripping off UK pensioners

Check out Con Keating's brilliant rebuttal on Henry Tapper's blog of the latest attempt by the greedy cartel also known as the Association of British Insurers (ABI) to justify the ripping off of British pensioners.

I am amazed that otherwise decent and respectable insurance companies soil their reputation in this way. Their lust for excess profits from their rip off charges in the DC pension business mean they defend the indefensible and attack new better value ideas such as "Collective Defined Contributions schemes".

You are forced to conclude that the senior managers of insurance companies are far more concerned with their inflated pay and bonuses than the interests of their poor (in the true sense of the word) policy holders. 

Personally, I hope a future Labour Government will break up this cartel and separate the insurance and pension industries. There are clear conflicts of interest.

Hat tip Newham's own Nigel Stanley at TUC Touchstone

Too poor to retire? Work until you drop under the Tories

Great video from TUC Touchstone showing Senior policy officer Richard Excell  explaining the state we are in - "September’s employment figures showed the number of people in employment rising. However, I’ve recorded this video to show that this increase is entirely due to rising numbers of people over retirement age in employment, many of whom cannot afford to retire. At the same time, average wages are falling in real terms, and living standards are falling".

Fairness & Prosperity – Free TUC online seminar next Monday

"Join us on Touchstone blog on Monday for an online seminar on the international evidence linking equality in society with economic efficiency. We’ll be talking with Richard Wilkinson, internationally famous co-author of The Spirit Level, Kate Green MP, and Howard Reed, author of the new Touchstone report into the issue, ‘Fairness and Prosperity’, which is launched on Monday.

Monday 18 July 2011, 10.00 – 12.00.

We’ll be live-streaming the event, with the opportunity to add your comments and questions on-line via Twitter or email. You can take part on line by visiting us here on the blog from 10.00 on 18 July.
If you plan to take part, please let us know, by using the online registration form and we’ll send you a reminder just before the seminar is due to start".

Robin Hood takes on the City Empire

Hat tip TUC ToUChstone "This Wednesday, the annual bankers’ and merchants’ dinner will be held at Mansion House. Before they start quaffing champagne and knocking back the caviar (ok, we’re not certain they’ll be on the menu, but it won’t be pork pies and stout, you can be sure of that!) you can take action to call for an end to the reckless gambling of the finance sector and demand a Robin Hood Tax to control speculation and raise billions every year for good things like spending on education, health and action against climate change here and around the world.

We’ll be playing a giant game of roulette with people’s jobs and lives in an iconic City of London location (to be announced) with a massive Peter Kennard photo-montage as a backdrop.
Come along on Wednesday lunchtime – dress up if you can! – and have fun while making a very serious point. If you can come, register to attend at otudor@tuc.org.uk and we’ll send you details nearer the time.

The CUTS Factor: Vote for 2010 Worse Spending Cuts

I voted for "Deprived areas: Local Authority Funding weighted unfairly. Just select your own "worse cut" and click on "submit". Hat tip TUC Touchstone

John’s Labour Blog: No 2 (ish) Trade Union Blog 2010

"The horror! The horror! ...despite being toppled by them from Number 1 spot as (tongue firmly in cheek) “trade union blog of the year” I do offer (obviously insincere) congratulations to the new No 1 blog- ToUChstone!

See results here by the trade union supporting website TIGMOO (“This Great Movement Of Ours”) run by New Media wizard, John Woods. This is the forces of light and reason (aka British trade unions) answer to Total Politics and Tory Iain Dale’s “Annual Guide to Political Blogs”.

I’ve been No 1 for the past 2 years but alas this year...

1: ToUChstone (2)

The TUC‟s public policy group blog, offering current affairs comment by the organisation’s policy staffers and guest contributors. Having probably the largest blogging team of any union blog pays off in terms of content and readership.

http://www.touchstoneblog.org.uk/

2: John's Labour blog (1)

Finally deposed after two years at the TIGMOO top spot, this one-man blog by a UNISON convenor has a strong focus on Labour party activism through the UNISON Labour Link and on developments for union pension’s activists.

grayee.blogspot.com

I had thought of asking John W for an affiliate block card vote to decide things but for some reason...anyway, inspired by Ultimate Big Brother I’ve emailed John to warn ToUChstone that - watch out comrades -this time next year ...I’m coming to get you!

:)

Public Sector Pensions Commission Minitrue

More choking on my branflakes this morning listening to the latest rubbish on "Today" from the so-called "Public Sector Pensions Commission" - and it being called an "independent report"! 

Checkout out the TUC blog Touchstone for the truth of the matter.  The Institute of Directors are hardly impartial on this issue.

As pointed out elsewhere would the BBC refer to a report by TUC on bankers' pay as being "independent"?

TUC Survey on Electoral Reform

I’ve just taken part in the TUC ToUChstone on-line survey on Electoral reform. It has analysed my responses and worked out that I am in favour of the “Alternative Vote” system. Which actually is a pretty accurate refelction of my views. While I don’t think that such reform is a particular cutting edge issue amongst the general populace - I do think it is important.

I can understand other systems such as Party lists etc are in theory more “democratic” but I do worry about the lack of accountability and would always want a fairer system that still makes MP’s answerable to their “manor”.

Anyway this is what was said on the Touchstone site about my choice of “Alternative Vote”. I think it’s not perfect but it is better than "first past the post" and ticks all the other boxes IMO.

As with the current “First Past the Post system”, the country would be divided into roughly equal constituencies that elect a single MP. But under Alternative Vote (AV), voters put candidates in order of preference.

When the votes are counted, candidates’ first preferences are tallied. If one candidate has more than half the first preferences, they are elected. If not the candidate with the fewest first preferences is eliminated and their second preferences are added to the other candidates’ totals. If necessary this process is repeated until a candidate gets more than half the total vote.

This is the system operated in Australia. One strength is that people no longer need to vote tactically. They can vote for their top choice of party, but do not have to worry that it will be a wasted vote as they can continue to express other preferences. The other strength is that every MP can claim that they have at least some support from over half of those voting.

AV can make an overall election result more proportional by boosting the third party, but less proportional by benefiting the winning party at the expense of the second party. The system favours centre parties that would gain second choices from both right and left, but doesn’t help parties with a low but geographically wide level of support. So in the UK, it could favour the Liberal Democrats and disadvantage the Greens for example.

Hat-tip thingy Johninnit!

TUC asked by Gov to Sack Millionaire Banker Paymasters!

I could not resist this headline – but check out the excellent TUC blog Touchstone and Nigel Stanley’s post on Lord Myners speech to the Lords today

Who said “I would estimate that at least 5,000 people working in the banking industry in the UK will receive, if nothing is done, remuneration in excess of GBP1 million this year.

I think the real responsibility here must lie with the shareholders. Accordingly I have written to the National Association of Pension Funds, the CBI and the TUC urging them to use their influence to persuade trustees to ask their fund mangers: ‘What are you doing to stop these quite unreasonable and unjustified levels of remuneration?’

The decisions about bonuses are going to be made over the next six to eight weeks and it is important our major institutions engage now with the companies and say that ‘we will not support grotesque payments and if you persist in paying them we will exercise our votes to remove from the board the people who authorised them’.

Rock on Lord Myners! By co-incidence I am currently writing up my report on my latest Local Government Pension Scheme Panel and Pension committee meeting. I wish Lord Myners had said this beforehand. It would have been interesting to raise the question with our fund managers. I suppose we need to write to our Panel and Committee chairs? Will ask UNISON Capital Stewardship unit for advice methinks? Colin?

A message back to Ahmadinejad

I’m moving rapidly into rant mode. I agree with the post on the ToUChstone blog that it was an absolute disgrace that so-called “President” Ahmadinejad of Iran was invited to give the Channel 4 alternative Christmas message.

So Channel 4 wants someone controversial? So next year we will have someone from the Paedophile Exchange or the BNP to give the message?

Ahmadinejad is a President of a regime that does beat up, wrongly imprison and even torture trade unionists. He also presides over the judicial murder of kids for being gay and the stoning to death of women who have been raped. Iran is the cradle of civilisation for crying out loud, so how on earth has such a moron come to power who can’t even string an argument together in his own language? This holocaust denier dipstick even wants to have nuclear weapons?

Come, friendly bombs and fall on Ahmadinejad and his works. Please...the earth will exhale.