State Pension: Women born in the 1950s

Debate between Grahame Morris and Guy Opperman

Thursday 22nd November 2018 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Ms Ryan. I congratulate the hon. Member for North Ayrshire and Arran (Patricia Gibson) on securing this debate and thank all individual hon. Members for their forthright and impassioned contributions.

The background is well known. The change, announced in 1993, was made for a number of different reasons, notably equality legislation and various cases in the European courts. At the same time, life expectancy and pressures on state spending were being considered. The reality of the present situation is that the number of people receiving a state pension is expected to grow by one third over the next 25 years, and by 2034 there will be more than twice as many people over 100 as there are now. The old age dependency ratio is projected to rise significantly over the next 20-odd years.

Following the passing of the Pensions Act 1995, the actual and projected growth in the pensioner population continued faster than anticipated, due to increasing longevity. As a result, the then Labour Government decided that a state pension age fixed at 65 was not affordable or sustainable. The Pensions Act 2007 was introduced, increasing state pension ages to 66, 67 and 68 years. The coalition Government, as has been explained today, set out further changes in the Pensions Act 2011, which accelerated the equalisation of women’s state pension age and brought forward the increase in men and women’s state pension age to 66, so that it would be completed by 2020. The Pensions Act 2014 then brought forward the increase in state pension age to 67 by eight years, so that it would be completed by 2028, and introduced regular reviews of the state pension age, the first of which was the Cridland review of 2017, to ensure that the system remains fair, sustainable and affordable for taxpayers on an ongoing basis.

There has been much discussion about life expectancy, which I will touch on briefly at this stage. The reality is that since the second world war there have been dramatic transformations in NHS care, in the quality of healthcare generally and in the nature of healthy lifestyles. Cohort life expectancy projections have also been transformed in that time, rising by more than 10 years for individual men and women. By 2018 those figures had increased by more than 10 years for newly born girls and by more than 12 years for boys, to 92 and 89 respectively. It remains the case that women live significantly longer than men. [Official Report, 17 December 2018, Vol. 651, c. 4MC.]

[Grahame Morris]

I wonder whether the Minister might address the issue I raised about not just life expectancy, but the anticipation of a healthy and active lifespan after retirement. Many of my constituents have worked in quite demanding occupations and are physically not capable of further work, which the Minister has previously suggested they should take advantage of. They really need to access their state pension.

[Guy Opperman]

I was going to come to that, but I will turn to that point now. I will deal first with general life expectancy and then with the point on healthy life expectancy.

On general life expectancy, I was going to answer the point made by the hon. Member for Glasgow East (David Linden), who is no longer in his place; I know we all have other commitments in other bits of the House today. The Office for National Statistics releases period life expectancy by local area of the UK, but not by individual parliamentary constituency. Life expectancy at birth in Glasgow is 73 years for men and 78 years for women, and it has increased by four years for men and more than two years for women since 2001 to 2003; it has increased in every area of the UK over the same period. Cohort life expectancy at birth in Scotland is currently 87 for men and 90 for women, and cohort life expectancy at age 65 in Scotland is currently 19 years for men and 21 years for women.

I turn to healthy life expectancy. The latest ONS statistics show that 65-year-olds in the UK are expected to live over half their remaining life in good health, at 11.2 years for women and 10.4 years for men. Healthy life expectancy as a whole has increased over recent decades, and healthy life expectancy at age 65 as a proportion of total life expectancy has been relatively stable since the year 2000. I apologise that I do not have the data for the specific area of the hon. Member for Easington (Grahame Morris), but I am happy to write to him on the specifics. I know his constituency very well; it is down the road from mine. In Scotland, healthy life expectancy at age 65 has increased in recent years. I believe that addresses that point.

I stand here defending not only the Conservative Government but the coalition Government and the Labour Government who were in power for 13 years, as well as the nine different Secretaries of State for Work and Pensions and 11 Pensions Ministers over that time, some of whom are still serving in this House today: the right hon. and learned Member for Camberwell and Peckham (Ms Harman); the Deputy Speaker, the right hon. Member for Doncaster Central (Dame Rosie Winterton); and the right hon. Member for Normanton, Pontefract and Castleford (Yvette Cooper); and various other Members such as the right hon. Member for East Ham (Stephen Timms), the hon. Member for Wallasey (Ms Eagle) and the right hon. Member for Birkenhead (Frank Field), all of whom supported the policy changes that took place because of the increase in life expectancy.

Pension Equality for Women

Debate between Grahame Morris and Guy Opperman

Thursday 14th December 2017 Commons Chamber

[Grahame Morris]

I will give way to the Minister.

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

The hon. Member for Kilmarnock and Loudoun (Alan Brown) will be aware that in 2007, after 10 years of a Labour Government, the then Government considered all matters of pensions legislation and passed the Pensions Act 2007. During their 13 years in power Labour Members had total capacity to do something about what they now say is not appropriate. With respect, there is a legitimate point to answer.

[Several hon. Members rose—]

State Pension Age: Women

Debate between Grahame Morris and Guy Opperman

Wednesday 29th November 2017 Commons Chamber

[Grahame Morris (Easington) (Lab)]

Will the Minister give way?

[Guy Opperman]

I will not give way any more, because I am conscious that 20 Members wish to speak.

Automatic enrolment was introduced in 2012 on a cross-party basis after a considerable amount of time. The important point is that the overall participation in workplace pensions of eligible female employees in 2012 was 58% but, following the introduction of automatic enrolment, the figure increased to 80% in 2016. For males, the figure increased from 52% to 76% in the same period. The private sector has seen the largest increase in participation in workplace pensions, and there was no gender gap in participation rates in 2016.

In the circumstances, I would respectfully point out that the key choice a Government face when seeking to control state pension spend is whether to increase the state pension age or to pay lower pensions, with an inevitable impact on pensioner poverty. The only alternative is to ask the working generation to pay an even larger share of their income to support pensions.

State Pension Age for Women

Debate between Grahame Morris and Guy Opperman

Wednesday 5th July 2017 Westminster Hall

[Grahame Morris]

I am grateful for that intervention; indeed, every constituency is affected. I believe my hon. Friend the Member for Jarrow (Mr Hepburn) said that 4,000 women are affected in his constituency; almost 5,000 are affected in my constituency of Easington. The women deserve both recognition of the injustice that they have suffered and some kind of financial help to alleviate the poverty that many of them are now suffering. I know that we are short of time, but I have heard some harrowing stories from women who have worked all their lives and now, through change of circumstance, have found themselves in the dire situation of having to sell their homes. They are facing enormous financial pressures because of changes in legislation that they were not aware of. That really needs to be put right.

The Labour party intends to extend our commitment to pension credit to hundreds of thousands of the most vulnerable women. I know that my hon. Friend the Member for Stockton North (Alex Cunningham) will go into a little more detail about exploring the options for further transitional protections to ensure that all the women have security and dignity in old age.

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

Will the hon. Gentleman give way?

[Grahame Morris]

I will give way, Sir Edward, but just because it is the Minister.

[Guy Opperman]

I accept that I am to be brief, Sir Edward. I want to clarify the hon. Gentleman’s position. I looked at his blog from June 2016, which maintained that the Pensions Act 1995

“timescales were such that they gave sufficient time for people to plan”.

The impression from that blog is that the hon. Gentleman had no criticism of the Act. Is that still the case?

[Grahame Morris]

I do not think that is necessarily a fair reflection. The changes were accelerated in 2011 and, for the record, I do not think that women were given adequate time. In fact, they were not given individual notification that the legislation had changed, and I think that Parliament and Government had a duty to notify all those affected at the earliest opportunity.

--- Later in debate ---

[Guy Opperman]

I will not, because I have a lot of points to make. The strategy aims to increase the retention, retraining and recruitment of older workers, and bring about a change in employers’ perceptions and attitudes—surely something that we would all endorse and wish for. We know that many people approaching the state pension age want to continue working or would like to be in work, and we have changed the law to abolish the default retirement age. I do urge colleagues to read the strategy.

After extensive debate, the 1995 Act changed the 55-year-old status quo by equalising pension ages for men and women at 65, with that change taking place between 2010 and 2020, depending on age. That statute was debated at length, and the changes were then the subject of widespread advertising, debate, leaflets, letters and 16 million state pension forecasts.

I am not here to criticise the 1995 to 1997 Conservative Government, nor the 1997 to 2010 Labour Government; I suggest that they made real efforts to communicate the change passed by Parliament in 1995. I rely in support of that on what the hon. Member for Easington said when he wrote of the 1995 Act in his blog in June 2016:

“The timescales were such that they gave sufficient time for people to plan for their new circumstances, and legislation was already in place that would have seen the equalised State Pension Age rise…in gradual stages”.

[Grahame Morris]

I ask the Minister to recognise that the issue was not the timescale; everyone agrees that 15 years is enough time. I was trying to highlight in my blog that the individuals were not given notice.