Lord Sikka
To ask His Majesty’s Government, further to the report Women’s State Pension age: our findings on injustice and associated issues, published by the Parliamentary and Health Service Ombudsman on 21 March, how much compensation they plan to pay to affected women, or to the families of affected women who have died; and on what timescale.
The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Sherlock) (Lab)
My Lords, the issues outlined in the ombudsman’s report are significant and complex. As such, they require serious deliberation, and we need time to review and consider the report alongside the evidence and the views expressed. As part of that work, the Government recently met WASPI representatives to hear their experiences directly. Once we have undertaken that work, the Government will be able to outline their approach.
Lord Sikka (Lab)
My Lords, paragraph 19 of the parliamentary ombudsman’s report clearly states that
“complainants have suffered injustice as a result of maladministration”,
and the report recommends compensation. Thousands of women have died while awaiting compensation, but all that successive Ministers have done is kick the can down the road, saying, “We are still consulting”. There has already been an inquiry. Can the Minister specify the date by which this injustice will actually be addressed and compensation paid? In addition, will she agree to meet another delegation of the affected women?
Baroness Sherlock (Lab)
My Lords, we understand the human impact felt behind the issues raised in this report. Retirement is a significant milestone that should, one hopes, be greeted with excitement rather than surprise. But I say to my noble friend that I do not think this Government could be accused of kicking the can down the road; the ombudsman published its report in March, we became the Government only in July and it is now October. Although I fully understand that he would like me to articulate a response here, I am sorry that I am not able to do so. However, I assure him that the Minister for Pensions met WASPI representatives recently—the first Minister to do that since 2016.
Baroness Janke (LD)
My Lords, by the time they reach 65, women will typically have £69,000 in their pension pots compared with the £205,000 the average man will have by the same age. What practical measures will the Government take to address the injustice of the pensions gender gap and enable proper security for women in retirement and old age?
Baroness Sherlock (Lab)
I am grateful to the noble Baroness for raising a really important point. The gender pensions gap starts with the gender pay gap. Therefore, the first thing the Government need to do is address the gender pay gap and we are committed to doing that. The national pay gap still stands at over 14%, which is really shocking. We know that most employers understand that, when women succeed, so does their business. We are committed to making sure reports are given. For example, gender pay gap action plans will be mandatory and will reflect the hard work of outsourced workers as well as employees.
The kinds of reforms that have taken place under successive Governments are beginning to change at least the way the state pension addresses the gap between men and women. In the new state pension, there is less of a difference because the old state pension was much more dependent on national insurance contributions and pay-related additional pensions, whereas the new one does not have that. The gap is closing, but in private pensions it is still significant, and we need to do more about that.
Viscount Younger of Leckie (Con)
My Lords, the final PHSO report in March cited maladministration, as the noble Lord, Lord Sikka, said. This is regarding communications by the DWP for 28 months from August 2005. But a ministerial submission in 2009 admitted that, despite steps taken to disseminate leaflets with pension forecasts and the rest, all this had failed to raise awareness among those directly impacted. What assurances can the noble Baroness give that the department has learned its lessons on how best to target its audience and to do it rapidly and in large volume?
Baroness Sherlock (Lab)
My Lords, the department is carefully considering the findings of the report. Since 1995, successive Governments have used a range of methods to communicate changes to the state pension age, from leaflets to advertising campaigns and direct mailings. We are making sure that the department is looking more closely at this. For example, we have written letters to people at different stages. Women who were affected by the Pensions Act 1995 were written to between April 2009 and March 2011. People impacted by the 1995 and 2011 Acts were written to between 2012 and 2013, and so on. People in the transitional group—those whose pension age is rising from 66 to 67, in which I count myself—got letters from the department between 2016 and 2018.
I think we are getting better. In the 2021 Planning and Preparing for Later Life survey, people whose state pension age falls between 66 and 67 were surveyed and 94% of respondents either got their state pension age right or underestimated it. Hopefully, this work is paying off.
Baroness Butler-Sloss (CB)
My Lords, I do not take a state pension, but about seven or eight years ago I got an email telling me that I was entitled to a pension for being over 80. I replied and filled out everything. So far, I have not heard a word. I wonder whether, in fact, the DWP is doing better.
Baroness Sherlock (Lab)
My Lords, if I could persuade—with some trepidation—the noble and learned Baroness to share the details with me, I would be very happy to look into that.
Lord Davies of Brixton (Lab)
My Lords, the ombudsman made it clear that these women suffered from maladministration and that they are entitled to redress. I ask my noble friend to recognise the case for urgency, particularly because the delay is leaving the people affected prey to scammers, who are offering to assist them in making claims. This issue needs to be resolved as quickly as practical.
Baroness Sherlock (Lab)
My Lords, I am grateful to my noble friend for raising that last point. To be absolutely clear, because there has been no response to the report, there is no compensation scheme. Anyone claiming to offer it is scamming and nobody should touch it—please can that message go out loud and clear. I understand my noble friend’s general point, and I know he will understand the position that this Government are in. At the risk of boring myself, never mind the House, all I can do is repeat that the Government are looking very closely at the findings of the ombudsman and will respond as soon as is practicable.
Baroness Berridge (Con)
My Lords, the Minister has outlined that she cannot currently give a date, but is she certain that this group of women is clearly defined in the department? There are representative groups, but when a decision is made, does the DWP know exactly whom they need to communicate with?
Baroness Sherlock (Lab)
My Lords, just to be clear, I am not making any assumptions about anything. In a sense, this is about when people were born. For example, we know that around 3.5 million 1950s-born women were impacted by state pension changes, as were a group of men. Most of those people have now reached state pension age, but I think there are 790,000 people born in the 1950s who have not yet reached that age. I am not saying that anything in this area is straightforward—it is not—but I understand the noble Baroness’s warning that any attempt to communicate with groups of people will need to be done carefully and with precision.
Lord Wallace of Saltaire (LD)
My Lords, when I reached my 80th birthday, I received a letter from the DWP telling me that in view of my advanced age my pension would be increased by 25p a week—I was overwhelmed by the generosity. That measure is no doubt 40 or 50 years old, and it would probably save the DWP considerable money if that aspect of the old age pension were discontinued.
Baroness Sherlock (Lab)
My Lords, I am shocked to find that the noble Lord is 80, but I commend him on his recent milestone. It is rarity that anyone in the House offers a way to save money, so I will take his point back.