State Pension Age: Women
Ian Blackford Excerpts(6 years, 12 months ago)
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Ian Blackford (Ross, Skye and Lochaber) (SNP)
I beg to move,
That this House calls on the Government to improve transitional arrangements for women born on or after 6 April 1951 who have been adversely affected by the acceleration of the increase to the state pension age.
Madam Deputy Speaker, may I wish you and everybody else in the Chamber a happy St Andrew’s day for tomorrow? With your forbearance, I will just remark that today is the 50th anniversary of the mighty Hibernian football club defeating Napoli—with Dino Zoff in goal—5-0 at Easter Road, ensuring that they went on to the next stage of European football.
I am delighted to open the debate and to move the SNP’s Opposition day motion calling for mitigation for women born in the 1950s. We are here in support of the Women Against State Pension Inequality Campaign and its efforts to secure fairness for women affected by the acceleration in their retirement age. I am saddened that we are having yet another debate on this issue, but the fundamental fact is that the Government should have taken action to mitigate the increase in women’s pensionable age. There must be action. The 3.8 million affected women have waited simply far too long for effective mitigation.
Nick Thomas-Symonds (Torfaen) (Lab)
The right hon. Gentleman will recall that we both called for action well over two years ago when he and I were our parties’ respective pensions spokespeople. Does he share my deep frustration that we have still had absolutely nothing?
Ian Blackford
I welcome that intervention, and I certainly look back fondly on the period when he and I were holding the Government to account. When the evidence is before us that the women did not get appropriate notice and that the acceleration is happening so quickly, it is an absolute outrage that we have had nothing from this Government.
Lucy Frazer (South East Cambridgeshire) (Con)
This is an important debate on an important issue—I also attended the debate in Westminster Hall last week—but does the right hon. Gentleman accept that it is wrong to say that the Government have taken no action? In 2011, they ensured that no one waited for an extended period beyond 18 months.
Ian Blackford
I have heard about spinning, but let me deal with the facts. The hon. and learned Lady refers to the fact that the Government brought in the Pensions Act 2011, but that increased the acceleration. To say that the Government have mitigated the situation is a distortion of reality, and Government Members should stop spinning and tell the 3.8 million affected women the truth: the pensionable age is increasing by three months per calendar month. That is the reality. The Government should be utterly ashamed of trying to argue that they have mitigated things, which demonstrates that some Conservative Members simply do not get what is going on.
Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
The tragedy is that it falls to us to speak for the individuals who have suffered. I have a constituent in Dolgellau who was born 24 hours too late and now has to work for an extra two years and three months. The change has led to individual tragedies.
Ian Blackford
I am grateful for that intervention; I cannot really add much to what the hon. Lady says, because she demonstrates the ridiculous nature of the situation and why the Government must listen.
Tim Loughton
I am grateful to the right hon. Gentleman, who knows that I support this cause. Although I cannot be here for the rest of the debate due to its late start, if there is a vote, I will certainly support this innocuous motion. The measures taken in 2011 actually benefited men just as much as women, but this is very much a women-focused injustice. Some 33% of men approaching retirement expect to rely on just a state pension, but the percentage for women is as much as 53%, which is why this issue is so important to them and to all of us.
Ian Blackford
I thank the hon. Gentleman for that important intervention. He has been resolute on this matter over the past couple of years, and I know that the women are grateful for his support; I hope that he will be back for the vote later on. I am glad that he referred to the motion in front of us, because we had a choice of all sorts of things to lay before the House today, but the motion is laid in such a way—simply calling on the Government to put mitigation in place—that all the Members of Parliament who have shown support for the WASPI women can support it. Now is our only chance to show that we can stand up and do something for those women.
Several hon. Members rose—
Ian Blackford
I know that many Members want to speak, so I will make some progress and let people in later.
This is about women who have paid national insurance in anticipation of receiving a pension and have been hit with the bombshell that their pension was being deferred—in some cases by up to six years—with only 15 months’ written notice. Members should dwell on that. They were looking forward to retirement, but they received a letter telling them that they were going to get as little as 15 months’ notice of an increase in their pension age. Can anybody on the Government Benches defend that? Will anybody stand up and tell the House and the public that giving someone 15 months’ written notice of an increase in their pension age is acceptable? Is anyone prepared to do that? If so, I will happily give way.
James Cartlidge
We recognise people’s concerns about the notice, but to rectify the situation requires public funds. In a previous debate, the right hon. Gentleman said that his party’s position was to pay for that from the surplus in the national insurance fund. Is that still his party’s policy?
Ian Blackford
Well, there we are. Given the opportunity to defend the indefensible, we again get spin. Let me make things absolutely crystal clear. The national insurance fund is sitting at a surplus in the region of £30 billion, and that surplus has been generated by the women who have paid national insurance. All that we have asked for is that the women be given what they are entitled to receive. A pension should be seen as a right, but the Government have changed the terms and conditions of that right without consulting those who have paid in for a pension. As many of the campaigners have said, “We paid in, you pay out.”
This campaign is at the heart of SNP policy. We have long fought for the Government to rectify the shambles and give the WASPI women the pensions they rightfully deserve. I speak on behalf of SNP Members when I say that we will never rest until justice is delivered for the women affected. The Government have failed time and time again to address the injustices of a lack of notice for the acceleration of the state pension age. There is an opportunity today for the Government to admit that effective notice was not given of an increase in pensionable age. The process of increasing pensionable age must be slowed down.
Simon Hoare (North Dorset) (Con)
The right hon. Gentleman is speaking with his customary passion on this issue, which he says is at the heart of Scottish National party thinking. I am not an expert on devolved powers, but my understanding from reading the legislation is that the Scottish Government have the powers to rectify this issue if they so wish. He chastises the Treasury Bench for a lack of action, but we have seen no action from Holyrood that could give a lead to the Government.
Ian Blackford
There we have it. Does anybody here think the Scottish Government have power to introduce pensions? [Hon. Members: “No!”] I will tell the House why: it is because we do not have the powers. It is about time that Conservative Members stopped creating the impression that we have that power.
Let me be absolutely crystal clear. Power over pensions is reserved to Westminster. There is a bit of a clue, because pensions are paid out of national insurance. I would love the Scottish Government to have control over national insurance. Let me make it clear that if we had control over pensions in Scotland, we would make sure that the WASPI women in Scotland got what is rightfully theirs.
Simon Hoare
The Scotland Act 2016 does not preclude the right hon. Gentleman—
Ian Blackford
There is a very simple answer. I have respect for the hon. Gentleman, as he knows, and he should go back and read the 2016 Act, because it is crystal clear that we cannot introduce new benefits, nor can we introduce payments based on age. The fundamental point that needs to be made is that we are talking about the state pension in the United Kingdom, which is a reserved matter. It ill behoves any Conservative Member to try to create the impression that the people of Scotland and elsewhere have powers that we do not have. If Conservative Members want the Scottish Government to have the powers to fix this, then give us the powers. Give us control over pensions and we will fix it tomorrow.
Ross Thomson (Aberdeen South) (Con)
The right hon. Gentleman has asked us to tell him what powers the Scottish Government have to help in this situation. Well, under section 28 of the Scotland Act they can create a new benefit, and they can make that argument on the basis of, but not because of, old age—the Department for Work and Pensions has accepted that argument. Further, section 26 allows the Scottish Government to make short-term payments to people who need them,
“to avoid a risk to the well-being of an individual.”
The Scottish Government have the powers. They choose not to use them. [Interruption.]
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. I want to hear the right hon. Gentleman. I was about to try to quieten down the House in order that I might be able to hear him, but I realise that most of the noise is coming from those behind him. He is making an important speech, and those behind him are trying to support him, but they are being a bit noisy about it.
Ian Blackford
The simple fact is that the Scottish Parliament and the Scottish Government do not have the ability to introduce new benefits based on age. What is really important, and the hon. Member for Aberdeen South (Ross Thomson) should reflect on this, is that this is a failure of UK Government policy. Nobody can get away from that. Are the Conservatives in Scotland really saying that the Scottish Parliament and the Scottish Government should again clear up the mess left by this Conservative Government? The Scottish Government have already spent £400 million mitigating the worst effects of Tory austerity.
That is the reality—[Interruption.] I see the hon. Member for Moray (Douglas Ross) chuntering. Maybe he could answer this question. Was he one of those who signed the WASPI pledge? Did he say to his voters that he would stand up for the WASPI women? If he is true to his word, he has to come through the Lobby with us this afternoon, or his words will be shown to be meaningless and a fraud on the people of his constituency.
Mr Bob Seely (Isle of Wight) (Con)
I am concerned that the right hon. Gentleman is not willing to listen to Government Front Benchers. I am sympathetic to the WASPI women, of whom there are nearly 10,000 on the Isle of Wight, but the reality is that he can do something about it, but he will not. He is not taking interventions because he would rather score political points than fix this problem.
Ian Blackford
That is pathetic, absolutely pathetic, because it demonstrates well and truly that the hon. Gentleman has not been listening. I have listened to Government Front Benchers in debate after debate in which they have been given the opportunity to do something about this. We introduced costed proposals in the last Parliament. The Minister, like countless Ministers before him, wants to sit on his hands. He wants this issue to go away, and I can tell him that this issue is not going away.
Several hon. Members rose—
Ian Blackford
I will make progress before giving way again.
The Government have an opportunity today to do something about it. I remind the House that 250 Members of Parliament have presented petitions on behalf of WASPI women. That is 250 Members of Parliament who I expect to go through the Aye Lobby tonight. There is no point signing a petition unless they are prepared to go through the Lobby, otherwise they have duped the WASPI women. I trust that no Member would wish to do that.
Our motion is a simple one. It calls for mitigation. It is written in a way that allows all Members of Parliament to recognise the injustice that women born in the 1950s are facing, and it allows the Government to bring forward proposals. Let me state at the beginning of this debate that if parliamentary democracy means anything, the House must divide on this motion. The Government must either support mitigation, which we are calling on them to do, or they must have the guts to vote against it.
Now is the time for Members on both sides of the House to signal that we need to put mitigation in place. Let us stand up today for 1950s women, because I believe parliamentary arithmetic is on our side.
Mr Jim Cunningham (Coventry South) (Lab)
Will the right hon. Gentleman give way?
Mr Cunningham
I congratulate the right hon. Gentleman on securing this debate. He and I have been involved in a lot of debates. I think the Government can find this money. It is no good their trying to blame the Scottish Parliament. This is a UK issue, full stop. I assure him that I will be backing him in the Lobby today.
Ian Blackford
I am grateful to the hon. Gentleman. I hoped he would be backing me, and he has been resolute on this issue over a long period of time. He is absolutely right; we can find money on the magic money tree for Northern Ireland and, as I said in the Budget debate only last week, we found £70 billion for quantitative easing last year. A £70 billion cheque was written for the Bank of England to put into the financial markets, so do not tell us that the Government cannot find the money. Of course, the answer to the question is that the money is there because the national insurance fund is sitting on a surplus.
Ian Blackford
I must make some progress. I will not take interventions for a while.
The moment has never been so opportune for Members on both sides of the House to come together to do the right thing and to call for this long-standing error to be corrected. Conservative Members made a pledge to the WASPI women as recently as June 2017. Scottish Tory Members—I will not name them, but they know who they are—signed the WASPI pledge before the general election and claimed to be prepared to act against party orders on the issue. There has been a deafening silence from them on this matter since the election, and the heckling has gone.
The House might be interested to know that, in the constituencies represented by Scottish Conservative Members of Parliament, a total of 84,000 women are affected by this Government’s legislative changes. I ask this question of the Scottish Tories, in a friendly spirit, particularly to those who supported the WASPI women during the campaign: will they have the courage to join us in the Lobby this afternoon, or will they turn their backs on the 84,000 WASPI women in their own constituencies?
I flag up to them page 62 of the Scottish Conservative manifesto, which states:
“We will also ensure that the state pension age reflects increases in life expectancy, while protecting each generation fairly.”
So, today, Scots Tories, do the right thing.
Colin Clark (Gordon) (Con)
The nub of the matter is that people are living longer and contributions were calculated on the basis of people not living so long. Although I sympathise with what the right hon. Gentleman is saying, the debt burden would be increased on our children and grandchildren, and that is grossly unfair.
Ian Blackford
I am stunned. [Interruption.] I am speechless, because we should put that out in a leaflet. We are not talking about tea and sympathy; we are talking about WASPI women having to rely on benefits, and they are going to get nothing from the hon. Gentleman—that is crystal clear. It is obvious where he stands on this issue.
Today, these Tories should deliver the generational fairness they promised in their manifesto. I sincerely welcome the backing of some 37 Conservative MPs who expressed support for WASPI women during the general election—37 Tory MPs signed the pledge. We will be watching this afternoon, as will the WASPI women, and these MPs will be expected to do what they promised in the election campaign and stand up for the WASPI women. That support stretches from the Tory Back Benches across to the Benches of the Democratic Unionist party—to our friends from the DUP. Page 9 of the DUP manifesto contained a pledge to protect pensions, with the announcement that the DUP would:
“Support an end to the unfair treatment of women pensioners”.
I call on DUP Members to deliver on their pledges made to the WASPI women.
Sammy Wilson (East Antrim) (DUP)
I am disappointed at the tone that has been set in this debate. Despite the fact that we have a motion that could command widespread support, the tone of the debate has not been as I expected. Let me make something clear: we made a manifesto pledge on this issue, and the reason why I am here as my party’s spokesman is that we do support this and we will go through the Lobby on it. However, the WASPI women would be better served if we had a debate that was not divisive and not about point scoring, because there is no party—whether Labour, the Liberals or the Conservatives—that has not caused some of this problem.
Ian Blackford
I am grateful that DUP Members will be going through the Lobby, but let me point out that we are trying to set out the facts of the arguments in this House. These women have for too long been let down by politicians, so let us use the opportunity we have today to give them the result they deserve. Thanks to freedom of information requests, we learned that the Department for Work and Pensions only began writing to women born between April 1950 and April 1955 in April 2009, and did not complete the process until February 2012. So it was writing to women to inform them about changes in legislation that go back to 1995 but it did not start the formal notification period for 14 years. Taking 14 years to begin informing women that a pension they had paid into was being deferred is quite something. Can we imagine the outcry if a private pension provider was behaving in such a way? There would be an outcry in this House and, no doubt, legal action. When we consider that entitlement to a state pension is earned through national insurance contributions, where many women have made contributions over 40 years, this is stunning.
A woman born on 6 April 1953 who, under the previous legislation, would have retired on 6 April 2013 would have received a letter from the DWP in January 2012 with the bombshell that she would not be retiring then—she would be retiring in July 2016. That is three years and three months later than she might have expected, and this is with 15 months’ notice. That is what Conservative Members have been defending, and it is no wonder the WASPI women are insulted. We are talking about 15 months’ notice before what they thought was a contract they had with the Government was simply to be ripped up.
A pensions White Paper published in December 1993 stated:
“In developing its proposals for implementing the change the Government has paid particular attention to the need to give people enough time to plan ahead and to phase the change in gradually”.
Not much there that I would disagree with, but when you accept the need for people to plan ahead, you need to write to them and tell them.
Chris Elmore (Ogmore) (Lab)
I am secretary of the all-party group on state pension inequality for women, as the right hon. Gentleman knows. A serious point for WASPI women is the number of women in their 60s who did not receive a letter. Their pensions were deferred until they were 63, even though they should have received them at 60, but they were not told at the time of those deferments that they should have received them three years earlier. This is another scandal about how the DWP has not been honest in those letters. Does he agree that that is something else the Government should be looking to address?
Ian Blackford
Again, I am grateful for that intervention, and the hon. Gentleman is correct in what he says. This is yet another clear example of why there is absolutely no excuse for not collectively taking action today. We have a choice: we can recognise the injustices that the women have faced or we can sit on our hands and do nothing. This is about morality. It is about doing the right thing. The Minister can look up to the skies, but it is not going to remove the problem for him. I do not want to wait until the end of the debate and then get another 10 minutes of ignoring the reality of what is going on. We have had that for too long and it has to stop—it has to stop today.
The intent was there in the 1993 White Paper, but it was 2009 before any formal letters went out. Then we have the issue of phasing this in gradually. What we are dealing with is an increase in a woman’s pensionable age by three months for each calendar month that passes. It is simply scandalous that a woman’s pensionable age is increasing so rapidly. It is indefensible and it is not within the spirit outlined in the Government’s White Paper in 1993.
In October 2002, while giving evidence to a Select Committee, the DWP suggested that the role of the state was
“to provide clear and accurate information about what pensions will provide so that people will understand how much they can expect at retirement before it’s too late to do something about it.”
How does “before it’s too late to do something about it” equate with 15 months’ notice? How can the Minister, and how can anyone who is not going to support our motion today, support that lack of notice? It has gone quiet now, has it not?
James Cartlidge
The right hon. Gentleman has to find a way to pay for this and he did say that he would still use the national insurance fund. Ruth Kelly, the then Financial Secretary to the Treasury, said the following in 2003:
“The national insurance fund provides security for those contributory benefits. It is ring-fenced and cannot be used for other Government expenditure.”—[Official Report, 21 October 2003; Vol. 411, c. 231WH.]
Ian Blackford
The hon. Gentleman is going to have to do better. Of course this is ring-fenced—it is for pensions. Pay it out! That is what the Government are being asked to do. As I was saying, no formal communication took place until 2009 and the task was not completed until 2012. The DWP has to take responsibility for this failure to communicate and, crucially, for the lack of time that women have had to prepare for an increase in their state pension age. Rather than recognising that women deserved to be communicated with directly, the DWP issued leaflets headlined “Equality in state pension age”. Can anybody in this Chamber remember them? No, I do not recall seeing them either. That is no surprise, as DWP-commissioned research in 2004 highlighted that only 2% of respondents mentioned that they had been notified of changes to their pension age via a leaflet. That is the responsibility that the Government took to inform people. Frankly, it is an insult that the Government at the time thought that changes that affect a woman’s retirement age could be delivered with a leaflet. That was an abdication of responsibility and we have to take responsibility for that. We should all receive an annual statement from the DWP on our expected entitlement, just as we do from private pension providers.
Dr Philippa Whitford (Central Ayrshire) (SNP)
Will my hon. Friend give way?
Ian Blackford
I apologise to my hon. Friend, but I have to move on because of the time.
The failure to communicate was highlighted by a 2004 DWP report called “Public awareness of State Pension age equalisation”, which stated that only 43%—less than half—of all women affected by the increase in state pensionable age were aware of the impact on them. If the Government accept that women were not informed in a timely manner and therefore did not have time to react, why do they not accept their responsibilities? I am watching the Minister and he is looking away. He is not interested because he simply does not want to hear the facts. When will he accept his responsibility for the WASPI women and engage in a constructive manner?
The Government sent out 17.8 million letters on automatic state pension forecasts to men and women between May 2003 and November 2006 but—wait for it—the letters did not contain any information about state pension age. You simply could not make this up. What they did say was:
“If you want to know more about the changes to State Pension age, please see Pensions for women—Your guide… See page 10 for details about how you can get a copy of this guide.”
That, Minister, was no way to convey information. What should have been communicated was accurate, clear and transparent information. It was yet another failure to do that by the Minister’s Department—another massive failure to communicate from Government. What is he going to do about it? Nothing.
On 23 November 2016, in answer to a written question I submitted, the previous Pensions Minister, the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Watford (Richard Harrington), stated:
“The Government has committed not to change the legislation relating to State Pension age for those people who are within 10 years of reaching it. This provides these individuals with the certainty they need to plan for the future…We recognise the importance of ensuring people are aware of any changes to their State Pension age”.
I welcomed that statement, but that recognition of the need to ensure that people are aware of changes was not afforded to 1950s women. If that statement from the previous Minister in 2016 is to have any credibility, the current Minister has to accept that the women affected were not given that courtesy and the Government need to correct that today.
I shall set the socioeconomic scene in which female pensioners find themselves under this Tory Government. Only 52% of women are adequately saving for retirement, compared with 60% of men. Female pensioners have a net weekly income that is approximately 85% of that of their male counterparts. More than two thirds of pensioners who are living in poverty are women. In August, the Institute for Fiscal Studies revealed that the increase in state pension age has left 1.1 million women £50 a week worse off. The IFS looked into the Government’s reform of the state pension, which was needed to account for a longer-living population, and found that the move to increase the eligibility age for women from 60 to 63 meant that income poverty rates were “pushed up substantially” from 15% to 20%. That is just as a result of the increase in the pension age from 60 to 63. Is the Minister going to defend that? Are the Tory MPs from Scotland, bearing in mind their constituents, going to defend that? There has been an 8.7% rise in the chance of a woman aged 60 to 63 being in absolute poverty.
In my constituency of Ross, Skye and Lochaber, there are 5,400 women who were born in the 1950s and are affected by the changes to the state pension age in 1995, 2007 and 2011. Throughout Scotland, the figure is a staggering 347,000. New freedom-of-information figures have revealed that although almost 4,600 maladministration complaints relating to WASPI women have been received by officials at the DWP, only six investigations have been concluded. The process of dealing with the complaints has taken so long partly because the DWP has only three staff members dealing with the complaints. Three staff members dealing with 4,600 complaints—that is how seriously the Government are taking this issue. The delays have been so long that the pensions ombudsman has now forced the independent case examiner to streamline the process. What a farce! That is an indication that the Government simply do not take their responsibilities to the WASPI women seriously—another let down from this Government for 1950s WASPI women. The Government have a commitment to the WASPI women and should stop playing fast and loose with their rights.
In a Westminster Hall debate on 5 July, the Minister talked about employment or retraining opportunities for 1950s women, stating—wait for it—that the Government had “extended apprenticeship opportunities”. There we have it: women who in some cases have worked for more than 40 years can go on apprenticeship schemes. Later in his speech, the Minister claimed:
“I realise it is not going down well”.—[Official Report, 5 July 2017; Vol. 626, c. 143WH.]
It is little wonder, because 1950s women do not want apprenticeship schemes; they want their pensions.
Women born in the 1950s do not want to be pushed on to benefits, but that is what is happening. Between August 2013 and August 2017, the number of people claiming jobseeker’s allowance or universal credit across all ages fell by 42%. We welcome that, but the number of 60s-plus women claiming a benefit rose by 9,500—a 115% increase—while the number of women aged over 60 claiming employment and support allowance increased by 121,000. That is a massive increase of 413%—that is the reality of the sharp increase in the state pension age for women. The reality is that women are being denied their pension and this Government are forcing them on to benefits. The Minister has been ridiculed by, among others, the Financial Times, in which he was described as one in
“a line of pensions ministers with no interest in pensions”.
He certainly has no interest in women’s pensions. Today, the Minister must start to take an interest and do the right thing by putting mitigation in place.
It is nothing short of a disgrace that the Government found no remedy for the WASPI women in last week’s Budget. The Chancellor stood at the Dispatch Box and extolled the virtues of spending billions on Brexit, but he failed to address the injustice faced by female pensioners. Transitional measures to mitigate the issue would cost significantly less than the UK Government’s £30 billion figure. Last year, independent research commissioned by the SNP showed that the cost would be £8 billion. We can find billions for Brexit and billions for Trident, but not one penny for our pensioners, who are treated with contempt by the Government. It is bitterly disappointing that the Chancellor did not use the Budget to support the WASPI women. Once again, it falls to the SNP, by securing this debate, to be a voice for this campaign in the House and to press the UK Government to do the decent thing. They have got it wrong—admit it and fix it now.
Several hon. Members rose—
Guy Opperman
I will give way in a moment, but first let me address the issue in relation to Scotland. I was surprised that the right hon. Member for Ross, Skye and Lochaber (Ian Blackford) refused 10 times to give way. If I were him, I would say that he was frit, but I will not go down that route.
In addition to the substantial support that the UK Government are providing, which is worth £50 billion across the country and 6% of GDP, the Scottish Government now have significant new powers available to them to tailor welfare provision to people in Scotland. Although pensions remain a reserved matter, the Scotland Act 2016 has given the Scottish Government the ability to use a wide range of new welfare provisions.
My hon. Friend the Member for Aberdeen South (Ross Thomson) correctly set out the provisions of section 28 of the Scotland Act. There are of course section 24 powers as well. I refer all colleagues, on both sides of the House, to a letter written to my predecessor by Jeane Freeman, my opposite number in the Scottish Government. She says that the power under section 26
“is limited to providing help with ‘short term needs’, and those needs must require to be met to avoid a risk to a person’s wellbeing. That would not readily allow assistance to the majority of women most affected by the acceleration of increase in their State Pension Age. Their needs and the risks to their well-being would have to be assessed individually.”
There is an acceptance in that letter that, as Scottish Conservative colleagues have said, the powers are there. Those powers commenced on 5 September 2016. It is up to the Scottish Government to determine how they will use those powers, but—
Ian Blackford
On a point of order, Madam Deputy Speaker. I am asking for your guidance about what we can do, because the Minister, perhaps inadvertently, is seeking to mislead the House. It is absolutely crystal clear in the Scotland Act 2016 that the Scottish Parliament is not in a position to introduce benefits by reason of old age. That is quite clear, and the Minister should be truthful with the people of this country. He should stop blaming the Scottish National party and the Scottish Government for a responsibility that solely lies here with Westminster.
Sir Desmond Swayne (New Forest West) (Con)
Further to that point of order, Madam Deputy Speaker.
James Cartlidge
I think the hon. Lady is missing the point. I am not saying that to my WASPI campaigners. I am not full of righteous anger, so high on my high horse that my ears pop, like the right hon. Member for Ross, Skye and Lochaber (Ian Blackford). If we are to go out on a limb to that degree, we must have a credible policy. We must be able to say, “This is how we are going to pay for it.”
James Cartlidge
I do not think that I should give way again, but I will, because the hon. Gentleman was very generous to me. However, others wish to speak, so I shall wind up my speech immediately afterwards.
Ian Blackford
We have tabled a very straightforward motion that asks the Government to introduce mitigation measures. The hon. Gentleman has asked for costed proposals, but we gave him one last year in the Landman report, on deferring the increase in women’s pensionable age. It would have cost £8 billion. That is one option. We have done our work; the Government have not done theirs.
Ian Blackford
On a point of order, Madam Deputy Speaker. This is important. I pointed out earlier in the debate that the SNP published the Landman report last year and it was fully costed. The hon. Member for Redditch (Rachel Maclean) has made an error by saying that our proposal has not been costed. It has been costed precisely and she should recognise that.
Madam Deputy Speaker (Dame Rosie Winterton)
That is not a point of order, it is a point of debate, and it has simply reduced the time available for other people to speak.
Caroline Dinenage
We have taken forward transitional arrangements. It is insulting for Members from parties that have played their part in getting us to where we are today somehow to wash their hands of the matter. I will go on to make a few points, if the hon. Gentleman will forgive me.
Those who are able to work should support those who are not, confident in the expectation of similar support when they reach retirement. Today’s workers provide the support for today’s pensioners, and that is why it is so important that we have the right balance of the contributions that are paid in at present with the pensions that are being withdrawn, and that we adjust pension ages to maintain that balance. Women who retire today can still expect to receive the state pension for 24 and a half years, on average—almost three years longer than men.
As was outlined by the Pensions Minister, my hon. Friend the Member for Hexham (Guy Opperman), the Department for Work and Pensions has communicated the timetable for changes to the state pension age since they were first set in train 22 years ago. As my hon. Friend the Member for Redditch (Rachel Maclean) pointed out, in response to concerns raised during debates on the Pensions Act 2011 in both Houses, we introduced the £1.1 billion concession that has been mentioned, which staggered the changes and ensured that no one would wait more than 18 months for their pensions, compared with under the previous timetable.
Any further concession would cost significantly more. It would involve asking people of working age—more specifically, today’s younger people, as my hon. Friend the Member for Chelmsford (Vicky Ford) mentioned—to pay even more for it. Those outcomes simply cannot be justified.
Caroline Dinenage
I am not going to give way to the right hon. Gentleman. He made criticisms in relation to the Budget and the Chancellor, but he went on to speak for a considerable time today, taking more than 40 minutes for himself and depriving Back Benchers of the chance to have their say. I will make some progress—[Interruption.] I want to address some of the issues that have been raised by SNP Members, so if the right hon. Gentleman would like to listen, I will do so.
As has previously been stated—my hon. Friend the Member for Aberdeen South (Ross Thomson) pointed this out—if the Scottish National party disagrees with any of the UK Government’s welfare reforms, it has the power to do something about it in Scotland.
The right hon. Member for Ross, Skye and Lochaber (Ian Blackford) has mentioned on several occasions that the Scottish National party’s Westminster parliamentary group published a report by Landman Economics, which modelled—[Interruption.] I thought he would be keen to listen to this. The report modelled the impact of a number of options for compensating women affected by the 2011 Act. Of these, the Scottish National party’s preferred option was to abandon that Act entirely, returning us to the timetable under the Pensions Act 1995.
The SNP-commissioned report put the cost of this option at £7.9 billion for the period between 2016-17 to 2020-21. As it stands, that is simply unaffordable, but it has the double misfortune of also being wrong. The Landman report significantly underestimates the full costs of returning to the 1995 Act’s timetable. The Government estimate that the cost over that period would be about £14 billion—nearly double—and that figure includes the impact of lost revenue from tax and national insurance, which the Landman report does not fully take into account.
What is worse is that the SNP’s position applies the costs only to the five-year window between 2016-17 and 2020-21. The costs beyond this horizon are simply not included in the option put forward. If the changes we are implementing did not happen, the actual costs to working-age people would be more than £30 billion over an extended period, which is equivalent to over £1,100 per household. I am sure the right hon. Gentleman would like to justify that to his constituents.
The Scottish National party has also suggested using the national insurance fund to pay for the cost of scrapping the Pensions Act 2011. However, that is not the intended use of the fund, and it is worth reiterating that today’s national insurance contributions fund today’s pensions, with an excess of only two months’ outgoing payments at any given time.
The new state pension is actually much more generous for many women, who were historically worse off under the old system. By 2030, over 3 million women stand to gain an average of £550 extra per year as a result of these changes. The acceleration of the increase in the state pension age for both women and men is necessary to ensure the state pension system’s sustainability in the light of increasing life expectancy and more pressure on public resources. In fact, by 2035, there will be more than twice as many people aged 100 and over as there are now.
Failure to act in the light of such compelling evidence would be reckless. Given the increasing financial pressure that I have described, we cannot and should not unpick a policy that has been in place for 22 years. It is simply not affordable, especially when we take into account the fact that the average woman reaching state pension age will get a higher state pension income over her lifetime than an average woman reaching state pension age at any earlier point.
It is important to appreciate the modern lived experience of later life in the 21st century, which has altered significantly since the inception of the state pension in the 1940s. Longer life, better health and continued activity in later decades are reshaping the profile and participation of older people in our society. This includes sustaining work and other economic activity as those over 60 continue to learn, earn, contribute and participate.
Ian Blackford
On a point of order, Madam Deputy Speaker. We have just had an impassioned debate, and a clear and decisive result. This House has determined that the Government should bring in mitigation for the WASPI women. I am seeking your guidance as to what we now need to do to empower the Secretary of State for Work and Pensions to come to the Chamber, recognise parliamentary democracy, and put in place the Government’s plans to respect the motion that the House has passed.
Madam Deputy Speaker (Dame Rosie Winterton)
I think that the most useful thing I can do is read out the written statement made by the Leader of the House on 26 October in which she updated the House on the Government’s approach to Opposition day debates. She said:
“Where a motion tabled by an Opposition party has been approved by the House, the relevant Minister will respond to the resolution of the House by making a statement no more than 12 weeks after the debate. This is to allow thoughtful consideration of the points that have been raised, facilitate collective discussion across Government, especially on cross-cutting issues, and to outline any actions that have been taken.”—[Official Report, 26 October 2017; Vol. 630, c. 12WS.]
I think that it is very clear what the Government will do. The right hon. Gentleman may well wish to question the Leader of the House further tomorrow, during the exchanges on the business statement, about when there might be a response from the Government.
State Pension Age for Women
Ian Blackford Excerpts(7 years, 4 months ago)
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Justin Madders
My hon. Friend is right that there is an arithmetical inevitability about this matter. That is a tribute to the WASPI campaign and the way in which campaigners focused on people who stood for Parliament and gained their support. Given the timescales and the people we are talking about, the sooner something comes forward, the better, because the women cannot afford to wait another five years until the end of this Parliament. I urge the Minister, as my hon. Friend has suggested, to come up with proposals sooner rather than later.
As we have seen following the election, Ministers have changed their minds on a range of matters, so why should the WASPI campaign be any different? Anyone who has spoken to campaigners cannot help but be moved by the compelling case that they make. I have met many of them and they have told me about how they have been affected. Many have received little or no notice at all about changes to their pension age, forcing them to reconsider retirement plans or, worse still, rejoin the jobs market some time after they thought that they would not need to work again.
I have heard from constituents who volunteered to take redundancy to save the jobs of younger colleagues on the false assumption they would receive their pension at an earlier date. They deserve better. It is no longer acceptable when we hear the Government say that change is unaffordable. As we have heard from various Members already today, we need only to look at what has happened in Northern Ireland in the past week to know that where there is a political imperative, money can be found.
Justin Madders
I will not give way any more.
What about the cost in unintended consequences? Constituents have told me that the position they find themselves in now has had a detrimental impact on their mental health. That has a cost to the public purse as well. If the moral and financial arguments are not persuasive, perhaps the Minister will reflect on the message that this sends out not only to the WASPI women, but to everyone.
The state pension is part of the social contract that the Government have with the people of this country. It is an important part of the state’s guarantee to people that if they pay their taxes they will be looked after in their old age or when they fall ill or otherwise face misfortune. If people do not trust the Government to deliver on that promise, we are heading down a road that we will come to regret.
Mhairi Black (Paisley and Renfrewshire South) (SNP)
It is a pleasure to serve under your chairmanship, Sir Edward. I was going to congratulate the hon. Member for Easington (Grahame Morris) on bringing this subject to the House again, but I actually find myself wishing that he had not, because I cannot believe that we are still debating it. I am absolutely scunnered with banging on about the injustice to this group of women. The fact that we have to have another debate is an absolute disgrace and says a lot about the Government and their priorities.
We are at the stage where these debates are almost scripted for me. I know exactly what is going to come back from the Government Benches and, like most people here, I know what I am going to say. We have heard the Government argue, “Well, the 1995 Act gave 15 years’ notice. That is exactly what the Turner commission recommended, so what is the problem?” Let me say it as clearly as possible: the problem is that nobody knew about these changes. The first letters were not sent out until 2009—14 years after the changes. To put that in context, I have been alive only eight years longer than that. That is 14 years in which consecutive Governments sat on their backside and did nothing, and the Government are now complaining that women are—quite rightly—angry that they never knew about the changes.
The thing is that the Government did not tell us about this issue with their hands in the air and say, “Aye, you’re right, sorry. We got that a wee bit wrong.” The information came from the hard-working women behind me in the Gallery through freedom of information requests and constant letters to the Government. The Government have been nothing but obstructive and downright stubborn the whole way through this campaign and since the issue was raised—so much so that the SNP actually went away and re-did its own work. We used our own money to commission our own report, which shows that this issue could plausibly be sorted and the legislation could at least be amended a wee bit.
All it would take is £8 billion spread across five years. That is a substantial amount, but as was said by the hon. Member for Gloucester (Richard Graham)—I had the pleasure of serving with him on the Work and Pensions Committee—the idea that the Government will genuinely stand in front of everyone here and say, “We can’t afford it,” is quite frankly laughable. It has been pointed out many times that they found £1 billion for a deal to cling on to power, but they say they cannot find the money to give women the pensions they are due.
Ian Blackford
My hon. Friend is a very reasonable person; let us see whether we can help the Government. We know that the national insurance fund has a surplus of £30 billion. Let us lay to rest the myth that there is a black hole. The Government Actuary’s Department’s own figures suggest that that fund will remain in surplus until at least the mid-2030s. May I suggest to the Government that they use that surplus? Women have paid in to the fund; let us make sure they get their pension, and let us do it today.
Mhairi Black
Not surprisingly, I agree with that statement. I heard some muttering from the Government Benches about how that is a lot of rubbish. Let me just say this: if that is a lot of rubbish in their heads, they should bring their plans forward. They do not get to criticise other parties’ plans when they have not even bothered to come up with their own.
Like I say, the debate is almost scripted, because I know that the Minister will say at some point, “We did look at this in 2011 and we did make the concessions at the time.” I guarantee that the Minister will say that. Let my reply be this: that is not how the world works. That is not how society works. If citizens come to them with a time-sensitive problem and say, “This still isn’t working,” it is the Government’s job to listen. It is not the job of the Government to look back and go, “We talked about that a couple of years ago, so I’m afraid there’s no movement there whatsoever.” If that is the case, I am looking forward to the next time the Army needs new funds, the next time this Parliament needs doing up, and so on. The idea that we cannot afford it is ridiculous.
Fundamentally, the worst part of this whole issue is that these women are targeted. The Government like to sit back and act as though these women are just unfortunate casualties of austerity and say, “Our hands are tied; we can’t do anything.” That is not the case; they are targeted. These are women who have suffered pay inequality and social inequality all their lives. We even heard earlier that women were told to use their husbands’ pensions. Society has changed a lot since then. What are we doing for these women now? And what about lesbian couples—women who are in equal marriages with other women? Are they just expected to bear the brunt? [Interruption.] It is not even a double whammy; it is a quadruple whammy at this point.
I am amazed that I feel the need to point this out. These women are blameless. They are guilty of nothing. They have done nothing wrong other than, for instance, not reading the back pages of the Financial Times in 1995. The only other two things they are guilty of are being born in the ’50s and being women. The Government do not get to plead that this is all in the name of equality; when only women are suffering under their definition of equality, it is time for them to reassess that definition.
Fundamentally, Governments should look after their people. When their people are coming to them and saying there is problem, it is their job to fix it. Let me put a little reality into this. I got an email today from a WASPI woman. I cannot remember where she is from—it is somewhere in England. She told me that her friend committed suicide after seeing the general election result because she could not face what would happen to her. Citizens are committing suicide over an issue that could be solved just like that—an issue that the Government could do a U-turn on at any given moment.
The Government managed to fork out a magical £1 billion to cling on to power; they must really want the job of having to fix these things. When they can find £1 billion for self-interest, they do not get to claim that money is the reason they cannot help.
The Government quite rightly dropped their manifesto pension plans—two of them in total, I think—because they saw how damaging, unworkable and unpopular they would be. That was wise. In actual fact, I have a bit of respect for them for being able to go, “Aye, we got that wrong, guys, so we’re pulling back. We’re listening to you.” I say, I hope for the last time: just drop one more plan. Realise that this issue is cross-party and affects people from different backgrounds and different areas. These are people’s mothers, aunties, sisters and cousins. Please do the right thing. Do the job of the Government—fix the problem and start looking after people.