John McDonnell’s pledge to pay women hit by pension age rise would add to UK’s debt, critics warn

Labour was accused of driving a ‘coach and horses’ through its own economic pledges yesterday with a last-minute £58billion pension spending splurge.

In what the Tories branded a panic move, John McDonnell said Labour would compensate 3.7million women who say they lost out unfairly because of rises to the pension age.

The pledge did not feature in the party’s manifesto and would have to be paid for by adding to the UK’s £1.8trillion debt, Mr McDonnell admitted.

Within hours of the announcement, serious questions were raised by independent economists over the impact on Labour’s claim of fiscal credibility.

Paul Johnson, director of the independent Institute for Fiscal Studies (IFS), told the Andrew Marr Show yesterday: ‘This drives a coach and horses immediately through the manifesto pledge to get to current budget surplus to remain at current budget balance.’

Last week, the IFS labelled Labour’s plans to raise £80billion of tax revenue through higher taxes on firms and the top 5 per cent of earners as ‘not credible’ and warned they would mean everyone paying more tax.

The Women Against State Pension Inequality (Waspi) campaign was launched by women who lost out following the 2010 announcement of increases in the state pension age from 60 to 65. Campaigners are pictured above with Jeremy Corbyn

Labour leader Mr Corbyn is pictured above at the Theatre Royal Stratford East in London. Within hours of the announcement, serious questions were raised by independent economists over the impact on Labour’s claim of fiscal credibility

The pension pledge takes Labour’s annual spending splurge to more than £97billion.

With the Tories promising £3billion extra, it means their manifesto promises £1 of spending for every £28 from Labour.

The Women Against State Pension Inequality (Waspi) campaign was launched by women who lost out following the 2010 announcement of increases in the state pension age from 60 to 65.

Born in the 1950s, they say they were given insufficient time to prepare for the policy shift and should be compensated. 

After losing their initial legal challenge, they are planning an appeal. Individual payments would average £15,380 but would run as high as £31,300.

In what the Tories branded a panic move, John McDonnell said Labour would compensate 3.7million women who say they lost out unfairly because of rises to the pension age. The Shadow Chancellor is pictured at the event in London

Mr McDonnell said the payments would settle a ‘historical debt of honour’. 

Cabinet minister Michael Gove said he sympathised with the women but warned Labour’s tax and spending plans would risk everyone’s futures.

‘All of our pensions depend on the health of investments and pension funds. Labour’s tax plans would hit those investments and those pension funds and damage economic security for everyone,’ he told the BBC.

Chancellor Sajid Javid warned of an economic ‘crisis by Christmas’ if Labour wins a majority on December 12.

‘If Jeremy Corbyn is standing outside Downing Street, imagine the nightmare on Friday 13th – to wake up to that. There will be a crisis by Christmas.’

During an interview on Sky News, Mr McDonnell was shown a picture of Labour’s tax and spending ‘scorecard’ which lists spending announcements and how they would be paid for.

He admitted the new pledge was ‘outside’ the commitments made only days ago. 

‘This is a very special arrangement, a contingency, in the same way that government has in the past dealt with matters like this,’ he said. 

‘The scale of this injustice is enormous, this is a discrimination against women in particular, older women, many of whom are on low pay anyway but now I think many of them have suffered so it’s an injustice we have to address.’ 

Mr McDonnell insisted that Labour had been ‘working on this for the last 18 months’.

Landlords targeted with yearly inspections

By Daniel Martin Policy Editor for the Daily Mail 

All landlords would have to submit to an annual independent inspection of their properties as part of Labour’s latest attack on the middle class.

Jeremy Corbyn wants a new ‘property MOT’ to deal with what his party says is the problem of squalid private sector housing.

Under the plans, there would be a legal requirement for landlords to have an independent annual inspection completed to ensure homes are up to scratch.

If landlords let out sub-standard properties or flout the rules they will face fines of up to £100,000 and forced repayment of rent to tenants. 

All landlords would have to submit to an annual independent inspection of their properties as part of Labour’s latest attack on the middle class [File photo]

Mr Corbyn said: ‘Labour will be on the side of tenants and take on dodgy landlords who have been given free rein for too long…

‘Labour will put power in the hands of tenants with our new charter of renters’ rights, a cap on private rents and funding for renters unions to support tenants to organise and defend their right to safe and secure housing.’ 

The party said nationally one in four private rented homes are classed as ‘non-decent’, meaning they are damp, cold, in disrepair or unsafe to live in.

The private renters’ charter will be based on three key rights. 

The first is the right to an affordable rented home, with rents capped at inflation nationally, powers for further controls for areas facing runaway rents and local housing allowance increased to cover the cost of renting.

The second is the right to a secure rented home, with new open-ended tenancies, protecting tenants from unfair eviction; the third is the right to a decent rented home, with minimum standards, backed by a new annual property MOT and fresh local enforcement powers.

John Healey, shadow housing secretary, said: ‘The power imbalance in the private rental market is at the heart of our housing crisis, with rents eating up too much of people’s pay, tenants afraid of eviction if they report problems and families with children forced to uproot their lives at short notice.

‘Many landlords provide decent homes that tenants are happy with, but the Conservatives have gifted rogue landlords the freedom to flourish. Labour will put bad landlords out of business.’