Pensions Bill

Baroness Greengross Excerpts

Monday 31st October 2011 Lords Chamber

[Lord Boswell of Aynho]

My Lords, I should like to speak briefly in support of the amendments offered to us by the House of Commons and against any further amendment thereto. In doing so, I speak as one of the instigators of the initial expressions of concern in this House, which were taken up so well by the noble Baroness, Lady Greengross, and others, and have led to the kind of compromise that the Minister has offered us today. It is a compromise; it is not perfect and certainly not what everyone wanted. However, the alternative would be unconscionable and unachievable.

The Minister has had to labour in devising this scheme with the aid of tremendous care and iteration. He has had to operate under two major constraints. The first, which he has set out more clearly than anyone else could have, is that of cost. I shall turn back to that in a moment. The second is the equal treatment directive. Although the measure of generosity or beneficence that he has been able to offer is welcomed by members of the male gender, the directive has attenuated some of the things that he would have done—if he had not been constrained by it—for persons of the female gender, who initiated the element of concern. He has had to live with that.

I say that as the author of an amendment that the Minister briskly dismissed in Grand Committee by pointing out that it would, somewhat beyond my intention, have been likely to incur an Exchequer cost of some £6 billion, which would have been out of court to the expenditure that he has been able to undertake on it. However, the Minister has done the right thing. In particular, I emphasise the importance of having a sound and viable medium-term strategy. It is quite easy for us, even those who are more expert in the public finances than I currently am, to look at issues in the deficit reduction programme without realising or acknowledging that it is equally important that we should have a credible medium-term financial stance; and that we should show that we are prepared to keep a rein on rising expenditure. The Minister has been able to soften that slightly but he has not been able to take away the constraints.

The Minister also had a third area to think about: how we should deal with this. I am very glad that the Government have not come back with a compromise that was a kind of lash-up—another set of discretionary concessions for a limited number. That would have been better than nothing, I am sure. However, as I advocated in Committee, he has come back with what I call an architectural solution: delaying the full impact of these changes, rather than just a series of slightly unfortunate and perhaps awkward-in-precedent changes.

I have one final point for the Minister. In praising him for his measure of controlled beneficence, I also remind him that it will be equally important for long-term assurance—given the longevity factors that are not really in dispute across this Chamber; we understand how people’s longevity is rocketing—that it may be necessary to return to some of the long-term milestones and a further increase in the pension ages. When that happens, future Ministers will not be constrained by the equal treatment directive because we will have got to parity before we start. However, I would not like anyone here to feel that that issue will have to go away unattended indefinitely.

[Baroness Greengross]

My Lords, I thank the Minister, particularly for his amendment. However, I want to emphasise that the real winners here are the half million or so men and women who are going to get their pensions earlier than they would have done without this amendment. I was not the only Member of your Lordships’ House who felt that this was very unjust, but I congratulate the noble Lord because he recognised this with great sensitivity. I agree with the noble Lord, Lord Boswell, that this is a compromise and that there were various constraints. It is not what we all wanted; it has not gone as far as we would have liked, but there were constraints that made that very difficult.

I tried in the amendment that I put forward to do something about what those of us who tried to change things we saw as a tremendous injustice to 300,000 older women—those who found they had to wait an extra 18 months or even more to get their pensions and 33,000 who had to wait an extra two years. Now, because of this amendment, 245,000 of those women, and a similar number of men, will see their pension age reduced between one and six months. It was not all that some of us, including Age UK, would have liked, but I am pleased to support the amendment as a victory for common sense and I thank the Minister for his sensitive approach.

With regard to going further, at this stage I just hope that no further changes will occur without due notice to everybody concerned and appropriate time for people to prepare for a huge change in their circumstances. That is very difficult to cope with at that stage in one’s life—particularly for women, who find it hard to get into the job market at all at that age or even to remain in the job market. I very much support what the Government have done, and thank the Minister again.

[Lord German]

My Lords, I also add my congratulations to the Minister and the Government for recognising what was the most important part of this Bill—certainly the most controversial part. When it left this House it left it unamended but, if one had taken the temperature of your Lordships’ House, it would have been quite clear that the Government had to do something to ameliorate the problem which was so well put in very many amendments. The Government have listened, and taken on board that message. They went away and came up with a compromise for which we have to be grateful. I pay tribute to the noble Baroness, Lady Greengross, who put down the amendment that paved a way, in a sense, for the sort of direction that the Government have adopted; it might have cost another £1 billion, but, as they say in musical terms, it was close enough for jazz.

The key issue here is that we have to recognise that, though the Government have taken this on board, it will mean a substantial improvement for women who might otherwise have been expected to work for an additional two years. As we have heard, these changes will cost £1.1 billion and affect 250,000 men and just under 250,000 women. I do not regard that as a sticking-plaster solution. It has not been put in place simply to hold the breach in the dam. Another part of the Age UK statement says that it is a big step forward. It states:

“We can’t emphasise enough the great achievement”—

the great achievement—

“that this change represents as it will cost the government £1 billion in lost cuts to expenditure”.

In fact, it will be just over £1 billion.