State Pension: Women born in the 1950s

Debate between Bob Seely and Patricia Gibson

Thursday 22nd November 2018 Westminster Hall

[Patricia Gibson]

I suspect that the Minister knows fine well the life expectancy in Glasgow East and various parts of the UK, but it might make uncomfortable reading when trying to impose a one-size-fits-all policy and stealing people’s pensions. Many of the women in my hon. Friend’s constituency, and indeed in my own, will die before they are of age to collect.

The Institute for Fiscal Studies has pointed out that more than one in five women—21.2%—in the group affected by the recent increases in the state pension age were in poverty, which is up 6.4% on the situation pre-reform. Meanwhile, analysis by the Centre for Longitudinal Studies found that the poorest pensioners are the least able to work into their later years. It concluded that both men and women who had been poor during their working lives were the most likely to leave the job market between the ages of 50 and 55, with poor health being the key driver.

With striking inequalities in life expectancy and health expectancy, there are great worries that the policy hits hardest the poorest and most vulnerable. That has been borne out by analysis by the Institute for Fiscal Studies that shows that a third of single women aged between 60 and 63 were in poverty after housing costs—up 13.5% since before the reforms. Similarly, nearly four out of 10 people who rent their homes are in poverty—up from around a quarter. The IFS also found that 1.1 million women had seen their individual incomes fall by an average of £50 a week. Increased income from earnings is simply not enough to offset the loss of pensions. TUC analysis shows that half a million workers who are within five years of state pension age have had to leave the workplace for medical reasons, and that those who have worked in the lowest-paid jobs are twice as likely as managers and professionals to stop working before retirement age, owing to sickness and disability.

In the absence of labour market reforms, it is hard to see how raising the state pension age will allow this group to continue working. Rather, it will mean greater reliance on working-age benefits, which the Government say they wish to avoid. That makes it even more indefensible—this point is key and I hope the Minister is listening, because I would really like him to address it in his reply—that the Government decided to implement the Cridland review’s recommendation to accelerate the rise in pension age to 68, but chose to ignore the welfare reforms that John Cridland said would be essential to cushion the impact of those changes. Will the Minister tell us why? The Government cannot just pick the bits they like; they should implement the whole review or none of it.

The Government have not listened, but that does not mean that these women are not suffering. Many of them have been left destitute. The Government may think that because they are ordinary women—organised, persistent and dignified as they are—they are easier to ignore than rich and powerful men, but the reality does not bear that out. These women have been robbed, betrayed, misrepresented and mistreated, and they will not go away. I repeat a question that I have asked the Government many times: where on earth do they expect these women to go?

[Mr Bob Seely (Isle of Wight) (Con)]

The 10,000 or so WASPI women in my constituency are certainly not natural protesters who wave a placard at the first opportunity. In fact, they have played a very positive role in our communities throughout the years. They are to be found in the women’s institute, making jam, and in many other voluntary groups. It is deeply disappointing that any Government should treat them in such a disrespectful way. Considering that the Chancellor announced more money in the recent Budget, it would have been nice if that Budget had given the WASPI women some recognition.

[Patricia Gibson]

I agree with everything the hon. Gentleman says. One of the most frustrating things that WASPI women have found in their quest for justice is not that they are not getting what they are asking for—bad as that is—but the wall of silence with which they have been met. It is as though they do not exist. That is not acceptable.

Economies of the UK Islands

Debate between Bob Seely and Patricia Gibson

Wednesday 9th May 2018 Westminster Hall

[Patricia Gibson]

As I said, I understand the right hon. Gentleman’s frustration, because we all want to fight for our constituents and secure for them whatever advantages we can as soon as possible. He will also remember that I said that the Isle of Arran got RET in 2014. From what he said, that was a considerable distance behind the first roll-out. The fact is that the roll-out is a process and a programme. Obviously, the islands that are not at the front of the queue will be frustrated and impatient, as they should be. The fact is that RET—as I suppose his frustration suggests—is a huge benefit to island communities, and any island would be mad not to want to secure those advantages as soon as could be arranged.

The object of road equivalent tariff is to increase demand for ferry services by making ferry travel much more affordable and more accessible, to increase tourism and to enhance the local and wider national economy. That is why the right hon. Member for Orkney and Shetland, the hon. Member for Ayr, Carrick and Cumnock and I are so excited about it. In order to be as helpful to the Minister as I can—I always try to be helpful to my colleagues—I intend to paint a brief picture to show him the positive impact that road equivalent tariff can have, in case it is something that he wants to consider rolling out in the rest of the UK. It helps to offset some, though not all, of the challenges that are faced by island communities, which we have heard a wee bit about today.

In the case of Arran routes, such as the Brodick to Ardrossan route and the route between Claonaig and Lochranza, stimulation of the economy has certainly been achieved. Arran’s economy—if you can believe this, Mr Rosindell—has grown by 10%, which is a faster rate of growth even than China. That is something to prize, and it can perhaps be best explained by the price of the Ardrossan to Brodick route tumbling by a massive 46% for foot passengers, with a 64% reduction for cars being transported on that route. That comes at a cost of a mere £2.4 million a year to the Scottish Government.

I will set out the advantages that RET has brought in practical terms to the island. Analysis carried out by Transport Scotland has concluded that RET has significantly increased resident ferry travel across all journey purposes, and increased the demand for ferry services. In addition, the number of tourists has increased substantially, with the season extended from Easter and peak summer to the equivalent of the whole summer timetable. RET has enhanced the island-hopping tourist market with neighbouring islands. The Scottish Government are investing £1.8 million a year to support RET for the route between Cumbrae and Bute.

We know that job markets on islands can be challenging and fragile—we have heard a bit about that today. For Arran businesses, the impact of RET has been extremely positive, with increases cited in footfall and turnover. The tourism sector has accrued the greatest benefits, with hotels, guest-houses, campsites, golf courses and visitor attractions all highlighting the positive impact of RET.

Interestingly, RET has been particularly beneficial to the more remote areas of the island of Arran, particularly on the west coast. That is surely down to the increased numbers of visitors availing themselves of the opportunity to bring their cars on to the island at a much reduced cost, and exploring the farther reaches of the island, beyond Brodick and Lamlash. It is heartening to see a new £10 million distillery on Arran, and major expansion of the Auchrannie hotel and spa, which will enhance any visitor experience. RET has also allowed those who live outwith the island to take up jobs that have been challenging to fill, as students or seasonal workers can sometimes fill them. There is even a scarcity of staff to fill the increasing demand for workers in the hospitality industry, demonstrating the success of RET for the island.

Of course, there is no denying that RET has posed challenges for some businesses in the retail sector, because they are becoming increasingly exposed to competition with the mainland. However, studies show that the overwhelming consensus is that there has been a very positive impact on the island in terms of social, cultural and economic opportunities.

We know that connectivity is key, and that is very true of broadband connectivity for our islands. The Arran Economic Group reported last year that, based on cabinet installations, more than 90% of households and businesses now have access to superfast broadband, with take-up on Arran and Cumbrae at around 41%. There have been particular issues with the area of Machrie on Arran, but progress is being made.

We have heard some remarks about connectivity, regarding broadband and mobile phone signals. It is true that that is an issue, but as I always say to constituents when they raise such matters with me, the connectivity of broadband and mobile signal on this very estate sometimes compares to some of the difficulties that people have on the island of Arran and other outlying areas in our coastal communities. The broadband and mobile phone signal on this estate is sometimes, as you will be aware, Mr Rosindell, absolutely shocking. The fact that we have that problem in the middle of London, in the middle of the parliamentary estate, shows the scale of the challenges that our island communities face.

Arran also suffers from the lack of affordable housing. That is a challenge for future economic growth on the island, since it has an impact on the working-age population. One barrier is that 22% of homes on Arran are second homes, with a further 59 empty homes identified. We need to find ways of offsetting those issues, alongside plans to build new affordable homes on Arran. The Scottish Government have helped to fund 96 new homes in partnership working. That is a start, but clearly there is much more work to be done. The Scottish Government are investing £2.2 million on Cumbrae for amenity housing, but there is no room for complacency. Affordable housing remains a big challenge.

We know that there are pressures on Scotland’s budget. I was quite bewildered by the comments made by the hon. Member for Isle of Wight (Mr Seely). He is standing up for his constituents, which is exactly what he is supposed to do, but I flinched when he called the Barnett formula “generous”, given that Scotland’s resource budget was cut by £211 million this year and will be cut by £538 million next year. I am sure that he wants more resources for the Isle of Wight, but I do not think that describing the Barnett formula as generous is the way to do that.

[Mr Seely]

Will the hon. Lady admit that Scottish islands get two things that the Isle of Wight does not: the Barnett formula—whether or not she describes it as generous—and the Scottish islands needs allowance? They are twice as generously funded as the Isle of Wight.

[Patricia Gibson]

The islands do not benefit from the Barnett formula; Scotland is allocated funding through the Barnett formula. I cannot describe it as generous. I do not believe for one minute that the hon. Gentleman is wrong to fight for his constituents, but comparing their funding unfavourably with any funding formula for Scotland is the wrong way to go. One thing that the islands in Scotland benefit from that the Isle of Wight perhaps does not is the priority that the Government give them. That might be a way forward.

There are clear challenges. Our island communities matter to us, as of course they should. As the hon. Member for Ayr, Carrick and Cumnock mentioned, the SNP Government in Scotland has brought forward the Islands (Scotland) Bill, which seeks to build better national and local economic frameworks for island development and their unique needs. It seeks to ensure that any legislation that is passed will be “island-proofed” to make sure that islands are taken into consideration and not forgotten about. That will help our island communities to become more sustainable and vibrant as they face the future—something that we all wish to see. I hope the Minister will reflect on the benefits of RET and will investigate the provisions of the Islands (Scotland) Bill, and perhaps use that as a way of improving the lives, experiences and economies of the islands across the UK.

I end by urging all Members who are here today—and those who are not, but who have the good fortune to listen to the debate—to pay a visit to the beautiful islands of Cumbrae and Arran, where they will find the scenery breathtaking and the communities warm and welcoming. Like so many previous visitors, they will find that they wish to return again and again.