Critically assess the impact of the European Union on government and politics in Britain.

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Critically assess the impact of the European Union on government and politics in Britain.

Recently, studies show that through the interaction of the European Union (EU) with UK law and pension arrangements, all five sets of EU measures are capable of uplifting people's access to pension schemes and the amount of benefit they ultimately receive. (Neil 2003)

This potential for producing beneficial effects can be illustrated in a number of ways, that is to say:

Firstly, there is the work of the European Commission (DGV) in the social protection field. This work aims to secure a common response by Member States to the acute financial problems faced by their social security systems, a response which does not involve a competitive downgrading of those systems.

Secondly, in connection with the liberalisation of financial markets, a Commission Communication urges Member States to remove restrictions on cross-border investment of pension funds. If acted upon, this could, it is claimed, increase the returns on investment that could in turn be translated into higher pension awards in the Member States concerned.

Lastly, labour mobility measures provide a third and final illustration of the welfare potential of EU pension-related activity. Thus, if adopted, the proposed draft Directive on removing occupational pension obstacles to people's willingness to move between EU states to work, could, possibly, lead to improvements in the valuation of preserved rights and transfer values for occupational scheme members.

The potential for EU measures to enhance pension access and pension provision has been realised in three areas. These are employment protection, equality and labour mobility.

In the employment protection field, EU-inspired UK legislation provides for women's acquisition of pension rights to continue during periods of paid and unpaid maternity leave. EU equality law, on the other hand, has helped to expand part-time workers' access to occupational pension schemes. Between 1987 and 1993, scheme membership among this group increased from 504,000 to 900,000. EU equality law has also helped to ensure that, by 1993, the vast majority of occupational pension scheme members (90%) were in schemes operating an equal pension age for men and women. This process of equalization has opened up opportunities for some women to continue working until 65 and to build up enhanced occupational pension entitlement.

In the state scheme, EU equality law has expanded older women's access to non-contributory sources of benefit income. Access to such benefits - invalid care allowance, severe disablement allowance and income support - is especially welcome to women who, because of past disability or engagement in caring work, do not qualify for a contributory state pension. In addition, as a result of EU equality law, more than one million men in the 60 to 64 age group gained access to free National Health Service prescriptions for the first time.

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EU labour mobility measures applicable to state benefits can also lay claim to a number of achievements. These measures aim to neutralise those elements of state social security schemes thought likely to deter people from moving within the EU to work. As a consequence of this EU activity, the uplifting the rating of the UK basic state pension is extended each year to 150,000 or so pension recipients residing in another Member State. In addition, UK pension rights in the process of being acquired by workers when they move to another Member State are preserved and paid out as a ...

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