Marriage (Same Sex Couples) Bill

Baroness Stowell of Beeston Excerpts

Wednesday 10th July 2013 Lords Chamber

[Baroness Royall of Blaisdon]

My Lords, I have added my name to manuscript Amendment 84A, tabled by my noble friend Lord Alli, because we believe that this is the most sensible course of action at this stage. Like my noble friend, we want to ensure that there is no discrimination in the Bill and that there are not two tiers of marriage. I, too, am extremely grateful to the Minister for managing to arrange a meeting with the Pensions Minister yesterday.

We have always accepted that there would be some direct cost to private pension schemes. However, £18 million, which is the figure often quoted, is a drop in the ocean for schemes worth an estimated £76.4 billion. The Government have asserted that equalising pensions benefits for civil partners and married couples of the same sex after this Bill could leave the public sector liable for costs of up to £3 billion to £4 billion. However, they have been far more reluctant to explain where those costs might come from.

As my noble friend said, the Government have already acted to equalise survivor benefit entitlements for civil partners with those of widowers for public sector and contracted-out schemes. The £3 billion to £4 billion estimate is based on the assumption that the removal of the legal exemption for civil partners will leave the Government being forced to equalise the entitlements of widowers with widows, thus levelling everyone back to 1978. But why they believe this to be a significant risk remains unclear.

The 1978/1988 distinction between widowers and widows was based on the historic position of women as being largely dependent on their husbands for income. Indeed, the courts have only recently upheld this distinction in the case of R v Iain Cockburn and Secretary of State for Health, where the judge ruled that there was an “objective and reasonable justification” for this because there had been, as the Government argued, a progressive realisation of gender equality and the initial rules had been set up to recognise the weaker economic position of widows.

Without the provision within this Bill, female spouses of same-sex marriages would, we presume, simply be treated as widows for the purposes of survivor benefits and male survivors as widowers. But nothing in my noble friend’s Amendment 84 would affect the historic male/female distinction that the courts have so recently upheld. To argue against this on the basis of retrospectivity is also flawed as the Government violated this principle themselves when levelling civil partners back to the entitlements of widowers, as they quite rightly did for public service pensions and contracted-out schemes.

In some sense, it could be said that by creating a different entitlement for widows and widowers of same-sex marriages from those of opposite-sex couples the Government are actually weakening their case against future challenges to widow/widower distinction. However, despite agreeing with my noble friend that the Government’s argument here is extremely tenuous, we want to offer the Government an opportunity to remove this inequality in the most appropriate way, as noble Lords on the Benches opposite have also said, and that is why I have added my name to the manuscript amendment today.

By voting for Amendment 84A, noble Lords will be saying, “We are not happy about the provisions within the Bill as it stands so we are leaving them there in parenthesis, as it were, for now until the Government have come forward with firm proposals for how to deal with this clear inequality”. It is quite clear to us that, one way or another, the Government will have to sort this out. It is better to do this through a process that they can own rather than be forced by the courts to do it later, as undoubtedly they would have to do.

I urge the Minister to accept Amendment 84A. I realise that the Government may well have to come back with tweaks at Third Reading but we want to right this inequality and this is a very fine way forward. It gives the Government some space to reflect, to look, to review and then come back, using the order-making power, to get rid of this inequality. I trust that the Minister will be able to accept this amendment.

[Baroness Stowell of Beeston]

My Lords, I must first say to my noble friend Lord Elton that I am in charge of many things at the moment, but one thing I am not in charge of is flooding. I would rather not add that to my portfolio for now. Before I respond in detail to the debate, I need to make a correction to the figures previously used by the Government in debates on this issue, about the number of schemes using the Equality Act exception relating to civil partners. The Government had stated that two-thirds of private occupational pension schemes already go further than the 2005 exception. This is incorrect. The correct figure is one-third. However, this does not change the estimated £18 million increase in liabilities that would arise from removing this exception, as that was already based on one-third of schemes.

The pensions system as a whole is full of differences in treatment as a result of changes in society and social attitudes. Such changes are introduced prospectively, so as not to place new unfunded burdens on pension schemes which could not have been taken into consideration in their funding assumptions. The current Equality Act exception, which this Bill also applies to people in same-sex marriages, recognises that pension outcomes in the present always reflect different accruals in the past, and that changes should be forward looking, rather than be retrospective.

Governments of all parties have sought to equalise pensions over time. What they have not done is try to equalise pension outcomes in the present, thereby breaking the link between past accruals and present outcomes. The standard approach is based on the principle that it is not right to impose costs on schemes, meaning they would have to pay out new amounts that were not promised in the past, whatever the exact scale of those costs.

Avoiding imposing retrospective costs on pension schemes is the standard principled approach which has been taken by successive Governments. That is the approach the previous Government took when civil partnerships were introduced in 2005, and when they brought forward the Equality Act in 2010. That is the approach we have taken in this Bill, by aligning the pension position of same-sex married couples with that of civil partners.

This approach means that pension schemes take time to catch up with societal changes, but over time the anomalies reduce and eventually disappear. Making any change to the position set out in the Bill would mean placing retrospective costs on the schemes. The Government understand that the current position is not perfect, but it is based on the principle that we should not seek to impose retrospective costs on private pension schemes—costs that were not planned for when benefits were being accrued.

The noble Lord, Lord Alli, seemed to try to dismiss the arguments that I was going to put forward before I had even had the opportunity to do so, but the Government’s case is quite clear. It is a strong one and I shall go through it properly. The two amendments in this group have different effects, as we have already established. Amendment 84, moved by the noble Lord, Lord Alli, would mean employers having to pay survivor benefits to civil partners in respect of their deceased spouse’s service prior to 2005, when civil partnerships first became possible. This amendment does not meet what I believe the noble Lord is trying to achieve, which is to give parity in provision of survivor benefits between same-sex married couples and opposite-sex married couples.

As well as going against the standard principled approach of avoiding imposing retrospective unfunded burdens, removing the current exception in the Equality Act would potentially lead to a much wider range of discrimination claims against pension schemes. There would be a significant risk of a domino effect, leading to full equalisation of survivor benefits at a significant cost to schemes and the taxpayer. The noble Lord, Lord Alli, said that no public money would be required to make this change. I disagree.

In addition to its impact on private sector schemes, the amendment would also impose a direct cost on public service schemes which would, at least, have to pay survivor benefits to surviving female civil partners based on pre-1988 service. This is because if the amendment were passed, not paying benefits to surviving female civil partners based on pre-1988 service would be discrimination on the basis of sexual orientation. To remove any such discrimination, public sector schemes would have to equalise pension benefits for surviving female civil partners and same-sex married couples with those for widows which are based on accruals from 1978. At the moment, benefits for those female survivors are currently based on accruals from 1988. Therefore, there is an immediate cost to the taxpayer.

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[Lord Lester of Herne Hill]

I may be wrong but is it not the case that there was retrospectivity to give effect to the EU principle of equal pay for equal work?

[Baroness Stowell of Beeston]

My noble friend introduces a new, very complicated matter and I am struggling with the complicated matters in front of me.

[Lord Higgins]

My Lords—

[Baroness Stowell of Beeston]

I am going to conclude very soon. Would my noble friend allow me to make some final remarks?

[Lord Higgins]

This seems to be the appropriate point to interrupt the very clear exposition my noble friend is making. I put this case to her: there is a company that had a final salary scheme for existing members and then, later in time, introduced a defined contribution scheme. The people in the defined contribution scheme cannot get all the benefits in the original scheme. None the less, the people under this retrospective legislation would be able to do so. They would be more privileged than the people in the existing defined contribution scheme.

[Baroness Stowell of Beeston]

That is an interesting point. My understanding of Amendment 84 is that its proposals would only apply to those who are currently in a defined benefit scheme. This is not about introducing the benefits of a defined benefits scheme to those who are only in a defined contribution scheme. I do not think that what my noble friend is suggesting is what is proposed in the noble Lord’s amendment.

As I have tried to explain, any change to the arrangements set out in the Bill would impose costs on the public purse, which would be considerable. The House should therefore be aware that any change to the position set out in the Bill would have a cost to the public purse, so an amendment to the Bill on this issue would infringe the House of Commons’ financial privilege.

[Lord Alli]

I was with the noble Baroness up to that point. I really think that the Government cannot say that there is a public cost, money coming out of the Treasury, for a section of the Bill marked “Part 6: Occupational Pensions and Survivor Benefits”, at page 36, which is limited to occupational pension schemes only. There is no public money, and the Government cannot say that there is. It is so clear that the House should not be put in a position of believing that public money is being spent on this.

[Baroness Stowell of Beeston]

I hope that I have been able to explain through my answer so far that there is a cost to the public purse in Amendment 84. Therefore, the amendment would infringe the House of Commons’ financial privilege. I have explained to the House why the Government believe that that is so.

Given the potential uncertainty and scale of these costs, we should be clear about what the implications and costs of the change might be before we make any legislative commitment in this area. I think that we can agree that this debate demonstrates the need for us all to be much better informed about the wider implications of equalising entitlement to survivors’ rights. Some of the points made by my noble friends Lord Higgins and Lady Noakes demonstrate that there are issues which need proper and careful consideration.

All that said, I can see the sense in what the noble Lord, Lord Alli, is trying to achieve via manuscript Amendment 84A that he has tabled today, which includes a review and order-making powers. I am grateful to him for reflecting further following the meeting we had yesterday with the Pensions Minister, my honourable friend Steve Webb.

I am conscious of the strength of feeling that has been expressed in this debate, and have considered the points that have been made very carefully. While I cannot accept the noble Lord’s amendment in its form today, I am willing to take it away and discuss it further with my ministerial colleagues with the firm intention of bringing back a government amendment at Third Reading. I therefore hope that the noble Lord, Lord Alli, will feel that he need not move Amendment 84A today.

[Lord Alli]

My Lords, I thank the Minister for that answer. Before I move on, I will add a few things. It took eight minutes before all five of my responses were used. I mention that because this is a very complex area—I accept that. However, there is a lot of smoke here. The issue that most concerns me, and the reason why I intervened, is that there is no public money. I say that having looked very deeply into this issue. To those in Committee, I said that I had the honour at the beginning of my career to be the publisher of Pensions magazine, Savings Market and Insurance Age. Therefore, I have spent time understanding the pensions market. The £2 billion to £3 billion to which the Government refer is about taking out the gender discrimination between widows and widowers. Recent judgments have upheld that principle. It has nothing to do with occupational pension schemes.

The second correction that I wanted to make was on the issue about the Civil Partnership Act and why it was put in place. Under the Civil Partnership Act, there is no corresponding civil partnership for straight people, so the read-across between opposite-sex couples and same-sex couples did not apply with civil partnerships. In this instance there is a read-across of a prejudicial treatment of two types of married spouses. That is my concern.

The final issue is that the cost is so minimal—£18 million at the low end and £80 million at the high end. The actuarial assumptions are so hard to make. Actuaries, in my experience, do not build the cost of gay people into their schemes. They do not look at whether someone is straight or gay and discount the rate. Historically, they do not go back and say, “Some gay people will have married because history allowed them to do so or society forced them to do so”. I am fairly sure that the actuarial calculations will remain pretty static. Those are the issues involved.

I thank all noble Lords who have contributed to this debate and given support. In particular, I thank the noble Baroness, Lady Howe of Idlicote, and the noble Lord, Lord Lester of Herne Hill, for adding their support to Amendment 84. I also thank my noble friend Lady Royall of Blaisdon for adding her name and support to Amendment 84A. Of course, I also thank the Minister. We have all been on a huge educational process on pensions; I fear that there may be another week of pensions mania, for which I deeply apologise. I thank her for her response; it is what the House had hoped to hear and I am very pleased with it. On that basis, I beg leave to withdraw Amendment 84.

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Moved by

[Baroness Stowell of Beeston]

86: Schedule 5, page 40, line 10, after “with” insert “this Part of”

[Baroness Stowell of Beeston]

My Lords, in moving Amendment 86, I will speak also to the other government amendments in this group. I am pleased to have this opportunity to talk about a group affected by the Bill who are often overlooked in our debates—that is, those men and women who are transgender. I would like to put on record my thanks to all those who have sent me many e-mails over the past few days.

This Bill will, for the first time, enable couples who wish to remain married when one spouse obtains gender recognition to do so. This is a welcome development for transpeople who have in the past been faced with the difficult choice between obtaining gender recognition or staying in their marriage. Although the Government do not believe that it is justified, I none the less understand that there is a real fear among some transpeople that the Bill will allow their spouse to veto their attempt to get a full gender recognition certificate, if they do not wish to remain married.

I have listened very carefully to the views that have been expressed in Committee and in meetings with noble Lords about this issue. Indeed, I am very grateful to the noble Baronesses, Lady Thornton and Lady Gould, and to my noble friend Lady Barker, who made time to discuss their concerns with me in some depth. Having done so, I am grateful for the opportunity, through Amendments 87 and 88, to make clear that all the non-trans spouse is being asked to give their consent to is whether they wish to remain married if their spouse changes their legal gender.

It is important to explain why this consent is needed, because some people have questioned why the consent of a non-trans spouse is needed in these circumstances. The reason is this: a party to a marriage obtaining gender recognition is a life-changing decision for the applicant and their spouse. The marriage will no longer be contracted between a husband and a wife of the opposite legal gender, which is why it is right that both spouses have the right to agree to a proposal to change the terms of their marriage before the change takes place.

Regardless of the non-trans spouse's view about the future of the marriage, the applicant is still able to get their gender recognition. Transpeople whose spouses do not give their consent to remaining in the marriage will be in the same position as they are now: it will be open to either spouse to commence proceedings to end the marriage before the full gender recognition certificate is issued. I am very pleased to table these amendments, which I hope will put it beyond any doubt that a spouse will never be able to veto a trans applicant’s ability to obtain gender recognition. I hope that these amendments, which make it clear what both parties to the marriage are agreeing to, will allay the concerns that have been expressed. I commend these amendments to the House.

As to Amendments 86, 89 and 133, I said in Committee that the Government have been considering carefully what can be achieved within the scope of this Bill to assist transpeople who made their transition to their acquired gender a long time ago but have not applied for gender recognition up to now because they would have had to end their marriage. The Bill now gives such people the opportunity to obtain gender recognition while remaining married, if their spouse is content for the marriage to continue. However, applicants who made their transition a long time ago may find it difficult to obtain the required medical reports from gender dysphoria specialists.

These amendments will assist such applicants by making the new fast-track procedure available to transpeople who are or were in protected marriages or civil partnerships and who transitioned six years prior to the commencement of these provisions and by reducing the amount of medical evidence they will be required to submit to the gender recognition panel. Such applicants for gender recognition will be required to submit one medical report, either from any medical practitioner, including a GP, or from a registered psychologist who practises in the field of gender dysphoria.

I can assure the House that a great deal of time and consideration has gone into developing these amendments and I hope that they further demonstrate the positive changes the Bill is seeking to make to the lives of married transpeople. I therefore commend them to the House.

[Baroness Gould of Potternewton]

My Lords, I begin by thanking the Minister for her tolerance and forbearance throughout our discussions on this very complex issue and for taking the time to meet me and the noble Baronesses, Lady Thornton and Lady Barker, to see if it was possible to arrive at a common view. Before looking at how successful our talks were, I want to say, on behalf of the trans community, how much we appreciate the inclusion in the Bill of the clauses that remove anomalies in respect of married transpeople who wish to apply for recognition by removing the requirement for them to be single at the point of gender recognition and so removing the obligation to dissolve their existing marriage or civil partnership. Equally important to the community is the concession on spouses’ survivor pensions, ensuring that no ongoing financial penalties will be incurred should a transperson in an existing marriage gain gender recognition. The Minister has just referred to the fast-track procedure, which is also very much appreciated.

However, there came a little disappointment because we have been unable to resolve the concerns over spousal consent. We appreciate that the amendments that the Minister has outlined clarify the position in respect of married couples and the definition of a statutory declaration of consent. However, in reality, it makes little difference in terms of that consent; the divorced would probably not be en route to registering a civil partnership. It makes little difference for the transperson. It does not really matter if the spouse is going to consent to the marriage or give consent for recognition. The principle thrust of opposition to the schedule remains unchanged.

There was a temptation to try to arrive at a further amendment that might resolve the differences between us, but that would have required a lot of detailed discussion and deliberation. Although I am not wholly happy with what we have in front of us, I suppose that it is, in some ways, a step in the right direction, which I acknowledge. I hope that there may be another opportunity for that discussion to take place and, when it does, I hope that the Minister will again be co-operative, as she has been, in trying to resolve our differences.

This is almost certainly the unfinished business of the Bill. There is no doubt that the transgender community is angry and will continue to be angry until we manage to achieve some resolution of the problem because its members remain concerned that the Bill provides a spousal veto. Therefore, at this stage, I seek the Minister’s assurance that after the Bill becomes law this issue will be considered in post-legislative scrutiny.

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[Baroness Thornton]

My Lords, government Amendments 86, 87, 88, 89 and 133 will provide a fast-track procedure for gender recognition where individuals have been living in the acquired gender for a long period and clarify that the consent of a spouse means consent to the marriage continuing, not consent to gender recognition. There is no doubt that we wholeheartedly welcome these amendments; we would like to put on record our thanks to the Minister and her team for the amount of work that they have put in on this issue.

This is an issue that colleagues in both Houses have been pushing throughout the Bill’s passage, and we have made progress with the Government on pensions and the fast-track procedure. However, as my noble friend Lady Gould has said, consent is a very sensitive issue, and the transgender community has reacted with outrage at the idea that their final recognition through gender recognition certificates should or possibly could be vetoed by their spouse, particularly if they were estranged or if the relationship had broken down.

Like the noble Baroness, Lady Barker, and my noble friend Lady Gould, we think we have made great progress, but this issue is unresolved and a community that has faced enormous discrimination and prejudice is very concerned about it. We need to keep a watching brief on this issue, and we will need to return to it, certainly in post-legislative scrutiny, if not in another Bill that comes along in which we can find some other way of doing it.

[Baroness Stowell of Beeston]

My Lords, I am grateful to all noble Baronesses who have contributed to this debate, who are the same noble Baronesses who I have met to discuss these matters.

I will be very brief in responding to the points that have been made. The noble Baroness, Lady Gould, raised the question of post-legislative scrutiny. I certainly expect the Bill’s impact to be considered and that the issue of spousal content will be part of that process. That would be a matter of form, so I can give some reassurance in that regard at least.

My noble friend Lady Barker mentioned the fast-track procedure and the length of time. The fast-track procedure reduces the amount of evidence that a transperson must submit to the gender recognition panel. Therefore it saves them from having to obtain new, additional evidence, which may be difficult and time-consuming. It does not affect the length of time from application to the issue of the gender recognition certificate; it is about the process prior to that point.

In concluding, I want to say how grateful I am for the generous remarks that have been made and to remind all noble Lords that the Bill is about allowing same-sex couples to marry. We have allowed transpeople who are already married to stay married. That is an enormously positive step forward, and we should not lose sight of that. However, it is worth pointing out also that because those transpeople are already married, it is essential that both spouses confirm that they want to remain married because their marriage is a legal contract that will change. When we get married—although, as we all know, I am not married. I have been to weddings, even if I have not had one of my own—on our wedding day we take somebody to be either our lawfully wedded wife or our lawfully wedded husband. That is a legal contract between two people. This Bill has enabled us to ensure that if one of those people is transgender and wants to have transgender recognition, they are able to do that and to remain married to the person who they fell in love with and married some years before. That is an important thing that we have been able to make happen. I take on board the points that have been made in the debate, but I am pleased that we are at least able to acknowledge the big step forward that this Bill will allow us to take.

Amendment 86 agreed.

Moved by

[Baroness Stowell of Beeston]

87: Schedule 5, page 40, line 21, leave out from “declaration” to end and insert “by the applicant’s spouse that the spouse consents to the marriage continuing after the issue of a full gender recognition certificate (“a statutory declaration of consent”)”

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Moved by

[Baroness Stowell of Beeston]

90: After Clause 13, insert the following new Clause—
“Marriage according to the usages of belief organisations
(1) The Secretary of State must arrange for a review of—
(a) whether an order under subsection (4) should be made permitting marriages according to the usages of belief organisations to be solemnized on the authority of certificates of a superintendent registrar, and(b) if so, what provision should be included in the order.(2) The arrangements made by the Secretary of State under subsection (1) must provide for the review to include a full public consultation.
(3) The Secretary of State must arrange for a report on the outcome of the review to be produced and published before 1 January 2015.
(4) The Secretary of State may by order make provision for and in connection with permitting marriages according to the usages of belief organisations to be solemnized on the authority of certificates of a superintendent registrar.
(5) An order under subsection (4) may—
(a) amend any England and Wales legislation;(b) make provision for the charging of fees.(6) An order under subsection (4) must provide that no religious service may be used at a marriage which is solemnized in pursuance of the order.
(7) In this section “belief organisation” means an organisation whose principal or sole purpose is the advancement of a system of non-religious beliefs which relate to morality or ethics.”

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[The Lord Bishop of Chester]

My Lords, I did not want to speak again, but given the way in which—

[Baroness Stowell of Beeston]

As my noble friend pointed out earlier in the day, we are on Report, so the only basis on which we are allowed to speak twice is if we are asking a specific question of the person who is speaking. The right reverend Prelate has already spoken.

[The Lord Bishop of Chester]

The guideline is that a Member is allowed to explain himself on an important point. That is what the guidelines say, and that is all I wish to do. I want to make it clear that I do not wish to extend civil partnerships as they are now to the sorts of relationships that are in the amendment. Clearly, if family relationships and carer relationships came into civil partnership, it could change the nature of civil partnership. I understand that that would be within the terms of the review.