Oral Answers to Questions
Debate between Caroline Nokes and Patricia Gibson(5 years ago)
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Patricia Gibson (North Ayrshire and Arran) (SNP)
The Minister for Immigration (Caroline Nokes)
The hon. Lady will have heard me say earlier that we are working very hard with the social care sector and listening to organisations such as the Local Government Association. A couple of weeks ago, I met not just the LGA but the Convention of Scottish Local Authorities to talk about the importance of the social care sector and to make sure that our future immigration system is able to recruit people with the skills and the talents that we need to come to the whole of the United Kingdom.
State Pension: Working-class Women
Debate between Caroline Nokes and Patricia Gibson(7 years, 2 months ago)
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Caroline Nokes
The hon. Gentleman will of course know that I am referring to the new state pension. That is exactly why we are introducing it, so that people have more certainty and clarity than previously. As well as being simpler, the new state pension will give more to many of those traditionally less well served in the past. By 2030, around three quarters of new pensioners will get a higher state pension than if the old system had continued. More than 3 million women will get around £550 more each year. It is estimated that women reaching state pension age in 2016-17 will receive more state pension on average over their lifetime than women ever have before. We have also created new pension freedoms that mean that savers have more control over their money and can use it in ways that suit them. In the new pensions marketplace, we are helping people make the right decisions for them through things such as Pension Wise, which provides free, impartial information.
I am pleased that Members from all parties agree that it is right that we have equalised the state pension age for men and women. It is part of the DWP’s wider objective of eliminating gender inequalities in social security provision.
Patricia Gibson
Does the Minister believe that the women whom we are debating were given sufficient notice to make correct and proper plans for their retirement?
Caroline Nokes
If the hon. Lady will give me time, I will come to exactly that point later in my contribution.
It is important that we all recognise that the age at which we receive the state pension must rise. Life expectancy continues to rise, and it is a key priority for this Government to ensure the long-term sustainability of the pension system. For that reason, the Government have introduced regular reviews of the state pension age. The issue is also likely to feature heavily in the Cridland review, which will be published in the coming months.
We recognise that employment prospects for women have changed dramatically since the state pension age was first set in 1940, especially for the women affected by the acceleration of the state pension age. Alongside the age increases under the new state pension, we have made huge progress in opening up employment opportunities for women and older workers. Since the 1970s, women have seen repeated increases in employment rates in later life compared with their male counterparts. The number of older women aged 50 to 64 who were in work in 2016 stood at more than 4 million, which is a record high. Approximately 150,000 more older women are in work than this time last year.
Caroline Nokes
Hon. Members raised the increase in life expectancy. It has been experienced by all over the last few years, but it differs by occupation type—the hon. Member for Newcastle upon Tyne Central was certainly right to point that out. Women aged 65 who worked in higher managerial and professional occupations are expected to live more than three years longer than those in routine or manual roles; for men, that difference is greater, at four years. However, women in manual occupations have a similar life expectancy at 65 to men in professional occupations. Life expectancy also varies across regions—the hon. Lady was correct to point that out—but it would be wholly impractical to vary state pension age across the country.
The fuller working lives strategy aims to increase the retention, retraining and recruitment of older workers by bringing about a change in the perceptions and attitudes of employers and by challenging views of working in later life and retirement among individuals. As part of the strategy, the Government are taking account of the fact that people change jobs over their lifetimes. It is now extremely unusual for people to stay in one career throughout their entire working life.
Patricia Gibson
Does the Minister have anything to say to the women who are watching today, in the Gallery or at home, about the lack of notice that they were given and about how that has upset their retirement plans and put them in dire financial straits?
Caroline Nokes
I reassure that the hon. Lady that I will come to that point.
The fuller working lives strategy adopts a very new approach: it is led by employers, who rightly see themselves as the ones who understand the business case and can drive change. Specifically to support older claimants, the Department for Work and Pensions has introduced older claimant champions from April 2015 across each of its seven Jobcentre Plus groups. It plans to roll the initiative out to each of the 34 districts. These champions will work with work coaches and employers to raise the profile of that age group and highlight the benefits of employing older jobseekers. In addition, the Government Equalities Office continues to work with the Women’s Business Council to tackle the outdated assumptions that some employers make about women, particularly mothers.
In “Building our Industrial Strategy”, our Green Paper published last month, the Government set out how we will test ambitious new approaches to encourage lifelong learning to help adults who want to upskill or move around the labour market during their career. However, we recognise that some women may wish to continue to work and are unable to do so, so we continue to spend £90 billion a year on working-age benefits in this country. The welfare system provides a safety net for those of working age, and there are a range of benefits tailored to individual circumstances. The system is designed to deal with the problems, such as unemployment, disability and coping with caring responsibilities, that affect those who are unable to work and are therefore in most need as they approach their state pension age.
Caroline Nokes
The hon. Lady also needs to reflect that these women are also living longer; we are all living longer.
As I was saying, the Cridland independent report is coming forward and will be published in March. It is part of the Government’s review of state pension age, which is due in early 2017.
Caroline Nokes
I will not give way again; the Chairman has made it very clear that he wants me to conclude my remarks.
A number of points have been made today about communications; in particular, the hon. Member for Ross, Skye and Lochaber has been quite forceful on this subject. He made the point that there were about 14 years between the decision being made and letters starting to go out. When he refers to “this Government”, I remind him that for the bulk of that time my party was not in Government, and if he wishes to lay the blame for a lack of communication, he might do well to direct it somewhere else.
We have continued this country’s long record of raising the living standards of pensioners, through our commitment to the triple lock and our reforms of the state pension, and we are revolutionising the world of private pensions through auto-enrolment, which is for everyone. However, we want continue our work aimed at providing older workers with greater choice and greater security in retirement, which is at the heart of our fuller working lives strategy. The results speak for themselves. We not only continue to increase the employment prospects for women above the age of 60 drastically, but the new state pension provides people with greater freedom and greater choice, and dignity in retirement.
Oral Answers to Questions
Debate between Caroline Nokes and Patricia Gibson(7 years, 2 months ago)
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Patricia Gibson (North Ayrshire and Arran) (SNP)
The Parliamentary Under-Secretary of State for Welfare Delivery (Caroline Nokes)
The Government have been very clear: bringing about state pension age equality was an important principle, and one that we have to maintain. We have made £1 billion of concessions to women in this age group but, as the pensions Minister has made clear, there will be no more transitional arrangements.