State Pension Age: Women

Debate between Lord Austin of Dudley and Ian Blackford

Tuesday 15th November 2016 Westminster Hall

[Ian Blackford]

Absolutely. The hon. Gentleman makes a valid point and demonstrates, rightly, why hon. Members across the House need to unite. This is not about one party—let me make that absolutely clear.

[Ian Austin (Dudley North) (Lab)]

Will the hon. Gentleman give way?

[Ian Blackford]

I will in a second. This is about all of us recognising that, as a House, we have a responsibility to do the right thing. It is about giving encouragement to the Government, just as happened last year with tax credits when we realised that we were going to be punishing hard-working families, to do the right thing by the women affected by this issue. That is what the Government have to listen to and respond to in the autumn statement.

--- Later in debate ---

[Ian Blackford]

The right hon. Lady makes a valid point, and I will come later to the notice period because the issues are both the lack of time that women have had to prepare for the changes and the caring responsibilities that many women in particular have. She is right to raise that point. I will take one more intervention and then move on.

[Ian Austin]

This is a very important point. I have lost count of the number of women in Dudley who have told me that they have not had time to make plans for the new arrangements. They have had to take time off to bring up their children, or reduce their hours or retire early to care for ageing parents or grandchildren. Other women have told me that they have lost their husbands and have not just had to come to terms with the bereavement, but have been thrown into financial turmoil as a result.

There is an additional unfairness in former industrial areas such as the black country, where women typically left school at 15 or 16, started work and did hard work all their lives. That is very different from someone graduating in their early twenties and doing an office job. Women in the black country have done their bit, and that is why the Government should be coming up with proper transitional arrangements so that they can plan properly for their retirement now.

[Ian Blackford]

I agree with that point. Many of the 2.6 million women affected have made more than 35 years’ worth of national insurance contributions. They have paid their way. They have paid their dues. This is about us accepting our responsibility. As I mentioned, 2.6 million women are affected by the increase in pensionable age and have an entitlement to a pension that they should have had. They need to be treated fairly—no more, no less.

The Government often state that the increase in pensionable age under the Pensions Act 2011 means that no woman will have to wait more than 18 months for their pension. That is disingenuous, as it came as an addition to the changes in the Pensions Act 1995, which are still being implemented. It is a fact that women’s pensionable age is increasing by six years over a very short period. That is the issue and the reality. It is about the combined impact of the 1995 Act and the 2011 Act. The Government have a duty to be truthful about the matter.

[Ian Blackford]

I am conscious that many Members want to speak and I do want to take interventions, but I will press on, if I may, and take interventions later.

The issue is not only the sharp acceleration of pensionable age, but that many women were unaware of the increase in pensionable age. As the Select Committee on Work and Pensions reported in March this year,

“more could…have been done”

to communicate the changes, especially between 1995 and 2009. Women have been let down not only by the rapidly increasing pensionable age, but by a failure of communication. We face the rapid acceleration of pensionable age and also the nightmare scenario for many women that they were not aware that it was coming. They have had little notice and no time to prepare for an increase in pensionable age. They have not been able to adjust accordingly, and in many cases we are talking about women and families who are struggling.

The Prime Minister talks about those who have been left behind and the duty the Government have to deal with it; the WASPI women have been left behind and it is now our responsibility to deal with it. We cannot just shrug our shoulders and blame past Governments for the failure to give women notice. We have a collective responsibility to deal with this issue and we have to show leadership. We cannot take the line that the last Parliament made a decision and there is nothing we can do; that is an abrogation of responsibility by all of us.

When the Government came forward with proposed changes to working tax credits that would have damaged millions of families in the UK, after much opposition, the Government ultimately relented and removed the proposals. We need to campaign in Parliament and throughout the United Kingdom to achieve the same objective here. We are not going away. The Government have to recognise that women should not be punished in the way that they are being by this increase of three months for every month’s difference in their age.

The Government have asked what we would do. That is why, in September, we in the Scottish National party published our own report looking at various options. We suggested a return to the timeline of the 1995 Act, which would slow down the increase to a pensionable age of 65 by 18 months, and defer the increase to a pensionable age for women of 66 years into the next decade. The cost of deferring over an additional 18-month period would be £7.9 billion. The Government estimated that the acceleration of state pensionable age in the 2011 Act for both women and men saved around £30 billion from 2016-17 to 2025-26, but that is simply not the case. That was scaremongering from the Government and, not for the first time, they got their numbers wrong. Depending on the timescale for the increase to age 66, there will be additional costs in the next decade.

I am grateful that, through the Backbench Business Committee, we have secured this debate, which is supported on an all-party basis, with a number of Conservative Members supporting the motion that was originally put forward. Of course, that happened on the back of many of us here today and in Parliament putting petitions down on behalf of the WASPI women. The WASPI women are going to be knocking on Members’ doors this week, next week and until we do the right thing.

We are often told that this is about the money. “We can’t afford it,” they say. This is not about women getting something they are not entitled to; it is about entitlement based on national insurance payments and about the Government meeting their obligations out of the national insurance fund—yes, for those who were not aware, inside Her Majesty’s Revenue and Customs there is a national insurance fund. I am grateful to the Government, or more specifically the Government Actuary’s Department, for stating that there is a projected fund surplus of £26.3 billion at the end of 2016-17, rising to £30.7 billion in 2017-18. The argument that the Government cannot do this is therefore bunkum. The money is there. These women have paid into the fund and we should meet our obligations. Women have paid their dues, the fund is in surplus and the Government can make restitution.

Next week we will have the autumn statement. If the Minister chooses, he could tell the Chancellor of the Exchequer about the strength of feeling on this issue. Next week the Chancellor could, if he is minded, deliver some good news for the WASPI women. Will the Minister demand that the Chancellor uses the surplus to do so? The money is in the national insurance fund to allow the Government to take action—to right a wrong, to reflect on the injustice of a sharp increase in pensionable age, to show leadership and to recognise that Parliament collectively got it wrong with the timetabled increases. This is, after all, about fairness. Men are seeing a one-year increase in pensionable age; for women it is six years, over too short a period. The Minister can be a hero to 1950s women by addressing the injustices that many are facing.

We are often told that there was no choice in the scale of the increase or the timing, and Europe was forcing equalisation upon us. In our report, we published the scale of increases in pensionable age in each European country. There are only two countries that are seeing such a rapid increase in pensionable age: Italy and Greece. When the Prime Minister took office, the first debate she fronted was on Trident renewal. The motion did not have a price tag, but the Chair of the Select Committee on Foreign Affairs, the hon. Member for Reigate (Crispin Blunt), informed the House that it could be as much as £205 billion. The Government effectively asked Parliament to give them a blank cheque. We can find hundreds of billions of pounds for weapons that can blow humanity to smithereens, but we cannot meet what should be a contractual obligation to 1950s-born women. Where is the fairness? Where is the humanity? Of course, the Government will be prepared to find £7 billion to renovate this place. If I had a choice, I would fund the WASPI women’s pensions first, and not spend a fortune on this place.

I know that a number of Conservative Members are here, and they are broadly supportive of the WASPI campaign. It is a pity that we do not have those who so far do not support it, but I say to the Conservatives: is there anyone on the Government Benches who is prepared to stand up and say that it is right for women’s pensionable age to increase at the rate of three months per month? How can anybody possibly think it is right that pensionable age should increase by three months per month? I would be happy to give way to anyone who wants to stand up and say that it is right, but I suspect that we will get what we always get: silence—silence and the hope that we, the Opposition, the Tories who support this and the WASPI women will go away. As I have said, we are not going away. We have given the Government an option and, unlike their Trident nuclear weapons commitment, it is costed. More importantly, not only are we not going away; the WASPI women are not going away.

The Pensions Commission that reported in 2005 suggested that at least 15 years’ notice should be given on any future increase in pensionable age. Given that, I ask the Minister: how can the Government defend the 2011 Act and some women receiving pretty negligible notice? Does the Minister think that is acceptable? There would be uproar, and no doubt legal challenges, if occupational pension schemes behaved in such a way. Can we imagine the outcry from Members of Parliament if we were told, with little notice, that our pension payments would be deferred by an additional six years?

[Ian Austin]

Will the hon. Gentleman give way?

[Ian Blackford]

I want to make a little progress, and will take interventions later.

Just as workers pay into occupational schemes, men and women pay national insurance in return for a state pension. Why should women be treated so shoddily? It is little wonder that WASPI women are considering legal action. For too long women have suffered injustices as far as equal pay is concerned. They tend to have much poorer workplace pension protection than men and are now facing state pension inequality. Why do we not stop, take stock and put in place mitigation? Let us have equalisation, but let us do so fairly. When we consider what has been done as far as communication is concerned, it is dismal. Women should have been written to at the earliest opportunity, letting them know what was changing and allowing them to consider their options. Yet in 2011, the Government said their approach was to inform women through leaflets and publicity campaigns. That was a failure of responsibility to act and inform appropriately.

It was only in 2009 that the DWP began to take responsibility and proactively write to women to tell them about the 1995 Act. They started to tell women in 2009, but it took the DWP years to issue all the letters. Last night I was given the response to a freedom of information request on the timeline of the letters—perhaps the most damning thing about this whole debate. Women born between April 1953 and December 1953 were formally told of the increased pensionable age only in January 2012. Women born between December 1953 and April 1955 were told only in February 2012. A woman born in April 1953 under the old regime of retiring at 60 would have expected to retire in April 2013. She was given just one year of formal notice of her new retirement date of July 2016. It was 17 years after the 1995 legislation before the DWP could be bothered to formally tell the women involved—too little notice; too little, too late. We should all hang our heads in shame at the way the WASPI women have been treated. If there is one issue that should force the Government to agree to change now, it is that new information and the timeline of notice given.

Why have we been able to find this out through a freedom of information request from the WASPI women? Why have the Government not come clean about this before? Who knew about this in Government? Did the Minister know? I have had many letters on this issue from the women affected. Rosina wrote to me:

“When the 2011 Pensions Bill was announced, it accelerated these changes, so that Women’s SPA would be 65 by November 2018 and then both Men’s & Women’s SPA would rise together to 66 by 5th April...Letters began to be sent out...but many never received them. I received my letter in early 2013, just before my 58th Birthday and just 2 years before my expected retirement age of 60. The letter advising me that I would now have to wait until I was 66 before I could draw my pension! How can I be expected to plan for a 6 year increase with just 2 years notice? How can this be acceptable? I had already made plans for my retirement. I will lose over £40,000 of pension because of this. I have paid into the system in good faith and the system has now failed me. I want the Government to stand up and admit that they have ‘wronged’ us Women of the 50’s by their gross mismanagement and...that they will now do the right thing and pay us what we are due.”

I cannot put it any better than Rosina. Will the Minister now accept that we have a responsibility to Rosina and the 2.6 million women who have been cheated out of their entitlement?

Scotland Bill

Debate between Lord Austin of Dudley and Ian Blackford

Monday 9th November 2015 Commons Chamber

[Ian Blackford]

I am grateful to my hon. Friend.

This is also about our ethos, the kind of society we are and what we will strive to do, because in Scotland we believe not in welfare, but in social security—we believe in offering protection to people—but we also believe in the principle that society is as strong as its weakest link. That is a very different concept from what we have in this Parliament, with the cuts that are coming through and those we know will come in the autumn statement.

[Ian Austin]

Will the hon. Gentleman give way?

[Ian Blackford]

No, I am going to make some progress, if the hon. Gentleman does not mind.

So I say to those in this House: will they respect the sovereignty of the Scottish people, who sent us to this House, or will they ignore the express wishes of the Scottish people? Let me say to Government Members that they have been rejected wholesale at the ballot box in Scotland. They should think very carefully before exercising a veto, which to all intents and purposes will be an English veto against Scotland. Perhaps in that regard the question we should put to the Secretary of State is: is he Scotland’s man in the Cabinet or is he the Cabinet’s man in Scotland? The Secretary of State should do the honourable thing—accept our amendment and stand up for the people of Scotland. What is it to be?

--- Later in debate ---

[Ian Austin]

rose—

[Ian Blackford]

I want to make some progress.

Labour Members need to start learning the lesson that Scotland rejected them for a reason. They had better start to get on side with us and the people of Scotland. Tonight is a chance for the House to understand that Scotland expects powers for the Scottish Parliament to be delivered so that Scotland’s destiny can be put in Scotland’s hands. That will not happen by voting for a Bill that leaves us with a hand tied behind our backs while a Tory Government do their worst to the poor and disadvantaged in our society.

Our amendments allow us to deliver on the interests of our people. We need a Parliament that will allow us to stand up for the people of Scotland and recognise that the people are sovereign. Let me finish by quoting Charles Stewart Parnell:

“No man has the right to fix the boundary to a march of a nation. No man has the right to say thus far shalt thou go and no further.”

It is in that context that we need powers to determine in Scotland when and if we want to have a referendum. It is in that context that the House should listen to the elected Members of the people of Scotland.