Transitional State Pension Arrangements for Women

Debate between Shailesh Vara and Lady Hermon

Wednesday 24th February 2016 Commons Chamber

[Mr Vara]

I am sure the hon. Gentleman is delighted that he was able to score his cheap political point.

Let me turn to our wider reforms. We inherited one of the most complex state pension systems in the world, and too many people did not understand what they could expect upon retiring. From April this year, we are introducing a simpler state pension that will give people a clear picture of what the state will provide so that they can build their own savings. We have a triple lock, so that pensioners will see their basic state pension go up by at least 2.5% every year, as it has since 2011. That means that from this April, pensioners will receive a basic state pension that is more than £1,100 higher a year than at the start of the last Parliament. It is important for people to look at matters in a broader context, rather than in the single-issue context that many colleagues seem to be speaking about.

[Lady Hermon]

I am genuinely grateful to the Minister for at long last allowing me to intervene. In response to an earlier intervention by a Conservative Member who has now left the Chamber, the Minister replied that Ministers are always happy to meet party colleagues to discuss difficult cases. Unlike the Minister for Pensions, who sits in the other place, this Minister has refused to come to Northern Ireland and meet women who were born in the 1950s and who are adversely affected by this change. Will he please have the good grace to agree to come to Northern Ireland and meet my constituents in North Down, and other women affected by this issue, and explain why the Government will not introduce transitional measures?

[Madam Deputy Speaker (Natascha Engel)]

Order. Before the Minister replies, 25 Members wish to catch my eye and we are hoping to have a Division at about 4:50 pm. We still have another Front-Bench opening speech, and we are getting tight on time. Interventions have been very long, but if the Minister could start concluding his remarks, we might be able to get everybody in.

Transitional State Pension Arrangements for Women

Debate between Shailesh Vara and Lady Hermon

Monday 1st February 2016 Westminster Hall

[Mr Vara]

I will not give way.

The Government have a duty to ensure the sustainability of the state pension scheme, and it would be irresponsible to ignore such developments.

Employment prospects for women have changed dramatically since the state pension age was first set in 1940. The most recent figures show a record female employment rate of 69.1%, with more than 1 million more women in work than in 2010. I am sure that Members welcome figures showing that the number of women aged between 50 and 64 in work is also at a record high, with more than 100,000 older women in work than at this time last year.

[Lady Hermon]

Will the Minister give way?

[Mr Vara]

I will not.

Turning to our broader reforms, we have introduced a package of measures to transform the pensions system. The triple lock is massively boosting the state pension, which will be £1,000 higher from April than would have been the case if we had uprated by earnings over the past six years. In addition, we have protected the winter fuel payment and permanently increased cold weather payments. We have created a new, simpler state pension, which will come in from April with a full rate of £155.65 a week. That means that 650,000 women will receive an average increase of £8 a week for the first 10 years. As that will be set above the basic means test for pensioners, people will have a clear platform to save on.