Today, January 1st 2009 marks 100 years since the first pensioners went to the Post Office to collect their State Pension of 5 shillings a week.

In 1909 half a million people over 70 got a State Pension for the first time.  Now they number over 12 million, with more than 700,000 people reaching State Pension age in 2009 alone.

Even though the pension was means-tested (see below), it was clearly a tremendous advance in social policy and the first time that the state had recognised it had a responsibility to look after those in old age.

The full pension (as per image ©National Archives) was 5 shillings (25p) for single man or woman, 7s and 6d (38p) for a married man. In today’s money that’s £19.30 and £29. By the end of 1909, there were around 500,000 pensions in payment in Great Britain.

Today the Basic State Pension is worth around four times more than the amount received in 1909. Help with fuel, Council Tax and rent plus the one-off payment of £60 on top of the regular £10 Christmas payment bonus boosts it further.

Pension applications were submitted to committees of nine people (at least two of whom had to be women) and successful pensioners were issued with an order book  (sample image ©National Archives) to be cashed each week.

People were excluded from getting a pension if they had avoided working when able, made themselves poor in order to qualify, and had been imprisoned or convicted under the Inebriates Act.

Pension officers from 1908 onwards did day to day assessments, visiting the homes of claimants.  Compensation claims from officers following these visits ranged from illness contracted in the slums to an insect bite to falling through a trap door.

Around 12,000 people in the UK will share their 100th birthday with the State Pension this year and by 2050 we can expect 250,000 new centenarians each year – that’s a lot of telegrams!

Secretary of State for Work and Pensions James Purnell said:

“It is incredible to think that one in four babies born today could live to 100. Things have come a long way since 1909. People live longer and want more from later life. These days people can spend a quarter of a century getting their State Pension.”

“As the State Pension moves into its second century we are committed to ensuring that pensioners receive the help they need. Which is why, alongside the State Pension and Pension Credit, this winter pensioners will receive additional support through their Winter Fuel Payment and an extra £60 bonus.“

Britain’s biggest pensioner organisation – the National Pensioners Convention (NPC) – is using the anniversary of the first ever state pension to call on the government to eradicate today’s growing pensioner poverty. Click HERE: and SAGA states: there’s nothing to celebrate as the State Pension reaches centenary .

1908 – 2008: Then And Now:

The first pension was non contributory but was means tested. Pensions Officers visited people’s houses to check how much money and what possessions they had – including the kitchen sink. People also had to prove they were of ‘good character’ before they received a penny.

In real terms, the basic state pension is worth around four times more today than the amount received in 1908. One way of looking at it is to consider what basket of goods the state pension bought in 1908 and how much today’s pensioners would spend on the same:

The full pension in 1908 was 5 shillings, which would buy:

5 large loaves of bread 1s

Half lb of tea 10d

lb of sugar 2d

lb cheese 8d

7lbs potatoes 3d

2lbs meat (cheap cuts) 1s, 1d

7 pints milk 1s

Today this basket could be bought at a major supermarket for £19.15:

5 large loaves of bread £5

250g tea £1.28

500g white sugar £0.48

500g cheddar £3.38

2.5k potatoes £1.98

1k Value stewing steak £4.49

7 pints whole milk £2.54

Our 1908 pensioner would have to spend all their pension to buy this basket of goods whereas today’s pensioner on the minimum pension credit guarantee would have £104.90 left over after her shopping.

Minister for Pensions and the Ageing Society Rosie Winterton adds:

“Today we salute the first pension pioneers who fought to provide security for people in old age. 100 years on the State Pension continues to be a foundation of support for people as they retire and we have taken steps now to ensure this will be the case for years to come.”

State Pension Centenary 1908 – 2008 The Centenary of Royal Assent of the Old Age Pension Act was Friday 1st August 1908.