Women and the Economy

Baroness Keeley Excerpts

Wednesday 9th December 2015 Commons Chamber

[Kate Green]

My hon. Friend is right. I, too, have met the WASPI women. Just the other day, my hon. Friend the Member for Worsley and Eccles South (Barbara Keeley) held a Westminster Hall debate on this very subject in which she pointed out the lack of notice to these women. That point was also made by my hon. Friend the Member for Leeds West (Rachel Reeves) and others when the legislation was passed by this House in 2011.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

Since that debate, the former Pensions Minister, Steve Webb, has admitted that the Government made a bad decision over these increases in state pension age equalisation. He made the excuse that his Department had not been properly briefed, and he went into crisis talks with the Prime Minister and the Chancellor to try to claw back billions. Those women are suffering because of that mistake and that departmental failure.

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[Debbie Abrahams]

rose—

[Barbara Keeley]

rose—

[Caroline Dinenage]

Give me a couple of minutes to make a little progress.

I want to talk about the motion. Where do I start? The evidence is deeply flawed. Unfortunately—I am sad about this—it is the typical back-of-a-fag-packet stuff we have come to expect from Labour Members. Frankly, they have made bizarre and outdated assumptions about how households divide their money. There is even an implication that lower fuel prices somehow do not help women. The pink battle bus may have run on something other than petrol, but the rest of us fill up in the normal way.

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[Caroline Dinenage]

My hon. Friend makes an excellent point. Inheriting an economy that was riddled with debt did nothing for women in this country, and not tackling the deficit would have been the real crime and created an unacceptable risk for our economy and people’s lives and futures. Not tackling the deficit would have put at risk the very jobs and services that women depend on. It would have risked their children’s education and security, and for those of us who want to ensure that everyone is able to fulfil their potential, such risks are unacceptable.

[Barbara Keeley]

The Minister is talking about competence, and I have already quoted from a former Pensions Minister who admitted to a bad decision that cost millions of women who were born in this country in the 1950s £30 billion. That was a mistake. The Pensions Minister now admits that he was not properly briefed, and he added two years to the pension age of millions of women without even realising what he was doing. Does the Minister really claim competence for a Government who do things like that?

[Caroline Dinenage]

The hon. Lady fails to recognise that in the new pension changes, women who have taken time out to raise children will now not be penalised by the system. She is being a little unfair. Thanks to the Government, we are able to increase support for childcare costs, and protect key Government services.

The commitment to supporting women in work is a priority for the Government, which is why the Prime Minister pledged earlier this year to end the gender pay gap within a generation. Let me be clear: there is no place for a pay gap in today’s society. That is why we committed to requiring employers to publish information on the difference between men and women’s pay and bonuses. We will shortly be consulting on the regulations needed for gender pay reporting, and I urge all employers to consider those carefully.

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[Barbara Keeley (Worsley and Eccles South) (Lab)]

The motion asks the Government to conduct an urgent cumulative assessment of the impact of their policies on women since 2010 and to take the necessary remedial steps to mitigate any disproportionate burden on women. Nowhere can this be seen as strongly as in the impact of state pension age equalisation on women born in the 1950s. In 1995, the then Conservative Government set out a timetable to equalise the pension age for men and women at 65 so that, from April 2020, women born in April 1955 or later would get their pension at 65.

In May 2010, the coalition agreement stated that a review of the default retirement age would take place

“to set the date at which the state pension age starts to rise to 66, although it will not be sooner than 2016 for men and 2020 for women”.

This pledge was broken when the coalition Government decided to accelerate the planned changes—a move that particularly hit women born in the 1950s. The changes brought about by the Pensions Act 2011 affect the lives of millions of women. It is not the niche issue that the hon. Member for Eastleigh (Mims Davies) talked about. Women born in the 1950s are unfairly bearing the burden and the personal cost of the increase in the state pension age, and I feel unashamedly political about standing up for them.

Speaking to “Channel 4 News” in May 2011 about the unfair consequences of the legislation, the director general of Saga said:

“We accept that the pension age will have to rise but it is the timing and the broken promise that we feel is unfair.”

She said that women

“may have made careful plans for retirement, only to have the Government pull the rug from under their feet.”

Ironically, she is now the Conservative Minister for Pensions. Earlier this year, she told me:

“I tried hard in 2011 but there is nothing more I can do I’m afraid. It is not in my power.”

Well, it is. As Minister for Pensions, she must recognise the injustice in the state pension age changes, which she well understood as a campaigner in 2011, particularly now that the former Pensions Minister has admitted that the Government made a bad decision.

During Second Reading of the Pensions Bill in 2011, the Secretary of State for Work and Pensions repeatedly referred to “transitional arrangements”, but he never put in place any fair transitional arrangements. The financial journalist Paul Lewis has looked into this and other issues, including the question of when the women were notified. He has said:

“Millions of women had their state pension age delayed—in some cases twice and by up to six years in total—without proper notice. The Government did not write to any woman affected by the rise in pension ages for nearly 14 years after the law was passed in 1995”.

The former Pensions Minister now admits it was not made clear to him that some people would have to wait an extra two years for their pension.

[Jess Phillips]

My hon. Friend is making a very powerful speech. My mother-in-law is in this category—she was not told. She left her job at what she expected to be a pensionable age, but has been left waiting a further three years before she can receive her pension. Does my hon. Friend agree that the Government have put nothing in place to support those older women back into work?

[Barbara Keeley]

Indeed and I will come on to talk about their plight. It is amazing to me that the Pensions Minister realised what a bad decision he had made—he admitted that quite recently—but still more than 1.5 million women aged between 57 and 59 were not told until then that their state pension age would be rising. In the worst cases, women were told at 57 and a half that their pension age would rise from 60 to 66.

The Government have since said that anyone affected by a rising state pension age must have 10 years’ notice, while the Pensions Commission suggests 15 years’ notice. The journalist Paul Lewis concludes, however, that none of the 1950s-born women had even 10 years’ notice. Women who have planned for their retirement suddenly find, as my hon. Friend says, that they have to wait many more years—up to six years—before they can retire. They find themselves without a job, without a pension or pensioner benefits, and without money to live on.

Members have referred in the debate to the campaign group Women Against State Pension Inequality. They are not campaigning against equalisation, but they are opposed to the way the changes have been enacted and the lack of transitional protection for women born in the 1950s. My constituents have told me about how the changes are having a significant impact on their lives. Case after case that I have been told about shows how many women in their early 60s have health problems that stop them working, or that they need to give up work in order to care—we have talked a lot about care in this debate. I have a constituent forced to live off her savings after working and paying national insurance for 44 years; another is unemployed at age 61 and trying to live off £75 a week. I have spoken to women in their early 60s who have been forced on to the Work programme. They find this demeaning after 40 to 44 years of work. A WASPI campaigner called Marian contacted me. She told me she gave up work at age 62 to care for her mother and brother, both of whom have dementia. Her only source of income is a small private pension of £2,500. Her husband will now have to support her until she is 65.

The women I speak about today have worked hard and contributed to the system. Throughout their lives, this generation of women have been disadvantaged in the workplace in terms of pay because of their gender. Even now, women in their 60s earn 14% less than men. Now, they are once again being treated unfairly because of the way changes to the state pension have been enacted. Ministers must look at ways to provide adequate transitional protection. A number of Conservative Members have said that they support—I hope they do—the transitional protection that Ministers’ colleagues repeatedly mentioned in the debates on the Pensions Act in 2011.

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[The Economic Secretary to the Treasury (Harriett Baldwin)]

This has been an historic debate, because it has been a debate with women at the Dispatch Box, by women in the Chamber, chaired for most of the time by a woman—and we also had some contributions from men.

The first duty of a Government is certainty to protect economic and national security, extending opportunity and aspiration to every girl and boy, allowing every woman and man to fulfil their potential, and giving older people dignity in retirement. The Government are managing the economy and the public finances properly, and as a result, we are enabling job creation, increasing wages, increasing job security, cutting income tax and helping parents with more free childcare in an economy that is 12% larger than when we took office in 2010.

Do women have economic equality yet? They do not. Women in our country still earn less, own less and retire with less than men. We can agree that all political parties seek to make progress on those issues.

[Barbara Keeley]

The Minister recognises that women retire with less. That really affects the women we have heard about in this debate who were born in the 1950s, who had to wait six more years to retire and are now living on very little. Has she heard what has been said in this debate? Will she take it away and talk to colleagues about it?

[Harriett Baldwin]

I will, of course, come on to address some of the points raised in the debate. Although there is political consensus that we must make progress on women’s economic issues, our parties will approach that progress differently. My party will stress more equal opportunity, more aspiration, higher skills and higher standards in education, while the Labour party will seek to tax women more, borrow more debt on behalf of women, their children and their grandchildren, and create more welfare poverty traps for women.

Today’s Opposition motion shows why the Labour party can never again be trusted to run our economy. In their motion on the Order Paper, the Opposition assume that mixed-gender households do not share incomes. That is quite an assumption. They assume that spending less on public services invariably leads to poorer services—something that we have comprehensively disproved over the past five years. They even imply that the billions and billions of pounds of tax cuts that have led to lower petrol prices at the pump do not help women. I have heard it said before that Labour wants to take us back to the 1970s, but this is more like the Harry Enfield sketch about the 1930s. I will try to imitate him: “Women, know your limits and, for pity’s sake, don’t drive!”

At best, the motion shows unconscious bias. At worst, it shows the latent sexism of a sexist Labour leadership. The motion says, “Don’t invest in infrastructure, because it’s not women who build things.” Where do I start with that?