State Pension Age (Women)

Chloe Smith Excerpts

Thursday 7th January 2016 Commons Chamber

[Chloe Smith (Norwich North) (Con)]

I am pleased to take part in this debate, and I congratulate those who have secured it and those who are working so hard outside this place to contact their Members of Parliament to talk about this very, very important issue of public policy and the impact of it.

My starting point is a passionate belief that a civilised country provides for families, protects the most vulnerable, helps those who look for work, and supports those in retirement. I am looking for the principles that we might apply to this debate based on the petition that has been presented. As I understand it, the petition raises three particular concerns: the lack of notice; the changes being made faster than expected; and the lack of time to plan. I recognise some of those concerns in what I have heard from my constituents. One told me that they had worked since they were a teenager, and that they were concerned about their own health challenges, their caring burdens and the prospect of re-planning. Other constituents are worried about the way the retirement dates work out. Indeed, one told me in 2011 that

“a woman who is just two months older than me can retire a whole year earlier.”

Again in 2011, a constituent told me that she was concerned about the “double attack” on her. She described how she felt when she received the first notification of change. She said she

“didn’t like it, but eventually accepted it and made the necessary changes to her plans, both mentally and financially”.

She then received another notification of change and was then forced to readjust a second time.

Another constituent put forward a very powerful and emotional argument. She said:

“When I first heard that my retirement age had gone up from 60 to 64 I was shocked and tried to ignore it.”

Those words seem to explain the communication problem that exists. The fact that a person was so shocked that they tried to ignore the problem shows just how powerful the problem is.

[Andrew Bingham (High Peak) (Con)]

I, like my hon. Friend and many other Members in this Chamber, have had many emails on this matter from constituents. Does she share my concern that the people who are affected by this have worked all their lives and have made plans and are now having to change them? We must try doubly hard when it comes to notifying people on pension issues, because, whether we like it or not, pensions are not very exciting until one reaches a certain age, at which I am now.

[Chloe Smith]

My hon. Friend puts it very well. Let me repeat what a constituent has more recently told me. She came to my surgery and explained that it had come as a shock to her that she would have to wait until she was 66 before she could retire, she was not informed, and found out only when she requested a pension statement. That goes to the heart of this matter of being informed and of having time to plan.

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

I would like some clarification from the hon. Lady. Freedom of information requests suggest that details were not sent out until the late 2000s. Is she implying that all these women who say that they were not contacted were contacted after 1995, but just ignored the notification? I find it hard to believe that that is what she is saying.

[Chloe Smith]

No, the hon. Lady is mishearing me. I am citing directly from constituents. I will ensure that the Official Report reflects my citations. Let me be absolutely clear. I do not know whether the woman in question received the letter; how could I possibly know that? I know what my constituents tell me. I look forward to the Minister’s explanation of what has happened historically. I understand the point made by the hon. Member for Paisley and Renfrewshire South (Mhairi Black) who opened the debate that the past is the past and that there is only a certain amount that we can do if we are looking back at a problem that has its roots in 1995.

Let me now explain what I am looking for as we move forward. I have already listed a set of principles that we could apply. The first is that we should protect those who can no longer work. Secondly, we should provide the right support for those who can work. Thirdly, we should maintain sound public finances, as to fail to do so hurts every single person in the economy. Fourthly, we should of course promote better communications to enable people to plan. That is my main message to Ministers today.

Let me dwell on the point of equalisation. Earlier in the debate, there was a hubbub of people saying, “Yes, we all agree on equalisation.” Let me provide a few figures on why we need to do that. When the state pension age was first set at 65 in 1926, male life expectancy at birth was 64 compared with 89 today. Indeed, if the state pension age had risen in line with the average life expectancy at 65 since 1926, it would now be at least 75. We have a significant gap that we need to make up. Indeed, if we looked even further back in the history books, we would see that when the state pension was set in 1908, the average life expectancy was 41. Members can see very clearly the difference with which we have to deal. Lord Turner’s report on pensions, commissioned by the previous Government, acknowledged that a more generous state pension had to be funded by an increase in the pension age.

Let us also make sure that we are aware of the costs. I understand that there would be costs to the tune of £30 billion to return to the 1995 timetable. Let us compare that with a few other things, simply so that we have a well informed debate. The 2015-16 spending figures, as shown in the July Budget, include expenditure of £28 billion on housing and the environment and £34 billion on public order or safety. All that we spend on housing or on public order and safety is broadly equivalent to the sum we are talking about today.

[Mr Marsden]

Of course comparative statistics are extremely important, but does the hon. Lady not recognise the reasonableness of the WASPI campaign, particularly on the issue of pension credit entitlements, which has been raised today? As she will know as a constituency MP, those are often key to what people receive.

[Chloe Smith]

I thank the hon. Gentleman for that point; I do recognise the grounds of the campaign. As I hope I have made clear with remarks from my constituents, I recognise the importance of the issue for every single person affected. I will leave it to the Minister to reply to the hon. Gentleman specifically about pension credits, but let me give him one further example of what £30 billion can buy. It can buy some of the debt interest on his party’s Government’s financial catastrophe, on which we have to spend £36 billion in this financial year.

I will conclude, because I have only a few minutes left and I have already taken several interventions. We have to listen carefully to such a comprehensive and well informed campaign, and I am pleased that we are doing that today. I want my constituents’ concerns, which I have given prominence in my comments, to be balanced with everything else that the Government have to do. I strongly sympathise with the campaign, and in 2011 I was active in representing my constituents’ views to the then Pensions Minister to mitigate the two-year delay in about a quarter of a million women receiving their pension. My call today is for the Government to communicate considerably better than has been done to date. It seems to me that we cannot go back, and equalisation has to mean equalisation. We cannot delay it forever or duck it. We need to maintain the principles that I have set out and communicate better.