Ann Davies
Main Page: Ann Davies (Plaid Cymru - Caerfyrddin)Department Debates - View all Ann Davies's debates with the Department for Work and Pensions
(1 day, 23 hours ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Manuela Perteghella
Yes. The hon. Member makes a good point.
The lack of transparency allowed this policy to persist under the radar. The formula used is regressive and unfair. For a start, the deduction is based on the full state pension rate one year before retirement, not on salary or actual state pension received. It is then divided by 80 and multiplied by years worked. The result? The longer someone worked and the less they earned, the more they lose. That injustice falls heaviest on women.
Ann Davies (Caerfyrddin) (PC)
Former Midland bank and HSBC workers who had a defined-benefit pension saw deductions from their pension entitlement at state pension age, to take account of the payment of the state pension. Those deductions had no link to salary or pension received. Lower-earning staff members, mostly women, were particularly affected, including my constituent Angela Blockwell. Does the hon. Member agree that that inequality must finally be recognised and that pension clawbacks must be abolished for all?
Manuela Perteghella
Yes, the practice is a relic from the past and needs to be abolished.
Women have historically occupied lower-paid roles at Midland bank and HSBC. They have taken career breaks to care for children or elderly parents, or have been placed on new contracts with clawback attached—often without being told the implications for their pension rights. HSBC claims that there is no discrimination because the policy applies to all, but indirect discrimination is defined as a policy that appears neutral but disproportionately harms a particular group.