State Pension Age

Debate between Carolyn Harris and Guy Opperman

Thursday 8th February 2018 Commons Chamber

[Guy Opperman]

With respect, this matter was debated at great length in 1995 and in 2007, under the Labour Government, and they could have altered the decision if they wished to do so. At that stage they took the view that the changes were fiscally sensible, and in 2011 the matter was again debated by Parliament and there was a concession of £1.1 billion, after much consideration by this House.

[Carolyn Harris (Swansea East) (Lab)]

Having heard the statement, I can only assume that the Minister really does not get this, because the strength of feeling, not just among the 1950s women, but among colleagues, is extremely high—they are angry. Maybe I can offer some help. If he agreed to meet me and his hon. Friend the Member for East Worthing and Shoreham (Tim Loughton), we could share with him the findings of a consultation we have recently undertaken on behalf of the all-party parliamentary group on state pension inequality for women. We could talk him through the problem and encourage him to do the right thing by acknowledging the problem and coming up with a respectful answer.

[Guy Opperman]

With respect, this matter has been debated since 1995—long before the hon. Lady and I arrived in this House—and successive Governments have taken a similar view on the appropriateness of the action, based on affordability, workability and the applicable equality legislation.

Oral Answers to Questions

Debate between Carolyn Harris and Guy Opperman

Monday 13th November 2017 Commons Chamber

[Yvonne Fovargue (Makerfield) (Lab)]

6. What assessment the Government have made of the equity of pension provision between men and women.

[The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)]

In 2012, overall participation of female eligible employees in a workplace pension was 58%, but since the introduction of automatic enrolment this had increased to 80% in 2016. For males, this has increased from 52% to 76% in the same period.

[Carolyn Harris]

Two former Pensions Ministers have criticised the Government for the policy, all Opposition parties recognise that the Government are wrong, the continuously growing number of cross-party MPs who have joined the all-party parliamentary group say it is wrong, and hundreds of thousands of disadvantaged 1950s-born women know it is wrong. When will the Pensions Minister and the Government admit their mistake and take action to rectify this grave injustice?

[Guy Opperman]

The Government will not be revisiting the state pension age arrangements for women born in the 1950s who are affected by the Pensions Acts of 1995, 2007 and 2011. This would require people of working age, and more specifically younger people, to bear an even greater share of the cost of the pension system.

State Pension Age for Women

Debate between Carolyn Harris and Guy Opperman

Wednesday 5th July 2017 Westminster Hall

[Guy Opperman]

Thirdly, we have also extended apprenticeship opportunities—one of the best routes into skilled employment—for people of all ages and gender. For example, in England in 2014 to 2015, 12% of those starting apprenticeships were aged over 45.

[Carolyn Harris]

Will the Minister give way?

[Guy Opperman]

I am going to set out these matters; please bear with me. In the 2017 Budget, the Chancellor allocated £5 million to increase the number of returnship schemes. We are working with employers across the public and private sectors to understand how returners can be supported back into permanent employment, building on successful examples run by companies such as Centrica.

I realise it is not going down well, but the point I am trying to make is that the Government are actually doing a significant amount to address the individual difficulties for those persons attempting to enter the labour market. Last year, the Government appointed Andy Briggs, CEO of Aviva, as the dedicated business champion for older workers, to spearhead work with employers on a business-to-business basis. I met Mr Briggs two days ago. He is clearly passionate about his mission to persuade employers to increase the number of older workers they employ by 12% by 2022. [Interruption.]

--- Later in debate ---

[Guy Opperman]

With great respect to the hon. Gentleman, the whole thrust of what he said in June 2016 was that there was no objection to the 1995 Act, due to the passage of time. He has now changed that position. I am only pointing out that the 1995 Act had a 15-year time limit. He knows full well that that is the case, and that that was his position at the time.

Sixteen years later, the coalition Government changed the approach in the Pensions Act 2011. The change was in a context where the impact of the post-war baby boom years is clearly still being felt. The number of pensioners is going up dramatically; notwithstanding any of the changes made by the 1995 and 2011 Acts, there will be around 25% more pensioners in 2050 than today. That is an extra 4.5 million pensioners compared with now.

Life expectancy has increased massively. In 1940, Government policy making indicated a retirement age at 60, and our forebears looked at a life expectancy of three score years and 10. Those days are long gone. A girl born today has an average life expectancy of 93. Those changes in life expectancies are significant, and the reality cannot be ignored. It is not ignored, and is set out in greater detail in the Cridland report, which looks at the future situation in relation to long-term pension age changes.

[Carolyn Harris]

Will the Minister give way?

[Guy Opperman]

I have a minute and a half to finish, so I will culminate on this point. In 2011, there was extensive debate on those changes in the House of Commons. The matter was debated on a number of occasions between February and November 2011 in both the Commons and the Lords. Subsequently, the Department for Work and Pensions and the coalition Government made efforts to notify those affected, with 5 million letters sent out and a range of information provided, to make individuals aware of their state pension age.

I will make three final points. In relation to the transitional provisions, it is the case that the position was different in the original 2011 Act. Following extensive parliamentary debate in both the Commons and the Lords, that Act was changed such that no woman affected by the 2011 Act would have to wait more than 18 months from the date that they might have been expecting their pension. For some, the time will be much less. I also make the point that the new state pension introduced in 2016 is better and much more generous for many women than that which existed under the old system.

I congratulate the hon. Member for Easington on securing the debate. It is not the Government’s proposal to repeal or ameliorate the 1995 or 2011 Acts, but I accept that we must do all we can to assist everyone affected into retraining and employment, and to provide support if that is not possible. The commitment to provide support is clear, unequivocal and ongoing.