State Pension Changes: Women

Chris Stephens Excerpts

Tuesday 12th March 2024 Westminster Hall

[Jim Shannon]

I thank the hon. Lady for that intervention. Everybody’s interventions so far have added to the debate and reinforced the issue.

Back when ladies started to work, there were no remunerated childcare schemes and it was not standard practice for ladies to be offered access to work pension schemes.

With all due respect to the Minister, the DWP has fallen down on this matter. The Department admitted in 2009 that direct communication with those affected by increases in the state pension age was limited. In 1995, leaflets explaining the changes were available from the Benefits Agency, but only on request. In other words, if someone wanted to know anything—if they even knew to ask—that is what they should have asked for. The fact is that the DWP has a responsibility.

Some 16 million voluntary letters were issued in the form of automatic pension forecasts projecting state pension entitlements, including to women aged over 50 at the time. Those letters did not include any details of state pension age or mention that it was changing, so those women were not fully notified. That is what this debate is about. When we look back specifically to the years between 1995 and 2000, we are reminded that we lived in a relatively pre-internet world, where information was not so readily available at the click of a button and social media did not exist. In the late 1990s, we had only five TV channels, and 24-hour broadcasting was still a thing of the future.

The DWP survey of 2004 asked working-age adults about awareness of state pension age equalisation. The results showed that, of those who were aware, 47% got their information from TV advertising, 37% were informed by reading a newspaper and only 2%—only 2%—cited the Pension Service as their source of information. The Pension Service had the responsibility, and it failed badly. Some 98% of those who qualified did not even know from the state Pension Service what should have been happening. That is a massive issue, and it has to be addressed. Furthermore, despite the efforts made through television and newspaper advertising, access to what we see now as the most basic avenues of communication was limited for women who were not securely housed or in unstable domestic environments.

WASPI women deserve to be compensated for the injustice they have had to face, and that compensation should be based on the principles of recognition, restitution and reconciliation. We could call them the three Rs—it is almost like going back to school—but here they apply to the WASPI women and pensions.

The first principle of compensation is recognition, and quite clearly there is a lot to do. The Government should acknowledge the harm and suffering caused by the changes to the state pension age, the inadequate communication of those changes and the failure to consult the women concerned for the reasons I have outlined. Recognition is important for restoring the dignity and trust of these women and for validating their experiences and grievances. It is also a precondition of achieving justice and reconciliation, as it shows that the Government are willing to take responsibility and to make amends for their actions. That is what this is about.

To date, there has been resistance to offering a formal apology to the WASPI women, and the Government have argued that the actions that were taken were lawful and reasonable. Let us be quite clear: they were not. That stance has been challenged by the PHSO, which found in 2021 that the Department for Work and Pensions had committed maladministration, as the hon. Member for Denton and Reddish (Andrew Gwynne) referred to in an intervention.

The PHSO also found that, by failing to act quickly enough to inform the women about the changes to their state pension age, the DWP had not given due regard to the impact of the changes on the women’s lives and offered them no adequate support or guidance. The PHSO recommended that the Government should apologise to the women and pay them compensation for the distress and inconvenience caused by the DWP’s maladministration —I use that word because it is the right word; it describes exactly what happened.

[Chris Stephens (Glasgow South West) (SNP)]

I thank the hon. Gentleman for the speech he has made so far. People have been waiting three years since the report he has just outlined. Does he agree that justice delayed is justice denied and that the Government should, as the hon. Member for North Antrim (Ian Paisley) said, compensate them now and use this Budget to deliver that compensation?

[Jim Shannon]

I thank the hon. Member for that, and he is right: there is a real onus on Government to reach out and help.

The PHSO also found that the DWP had not given due regard to the impact of the changes on women’s lives and had not offered women adequate support or guidance. It recommended that the Government should apologise to the women and pay them compensation for all those things, including the maladministration. The Government should take positive steps following the PHSO’s findings and recommendations and issue that sincere and public apology to the WASPI women. That would be a significant gesture of respect and remorse and a first step towards repairing the relationship between Government and the women we all represent.

The second principle of compensation is restitution. The Government should restore the affected women to the position they would have been in had the changes to the state pension not occurred, or at least mitigate the negative effects of the changes. Restitution is important for compensating the women for the material and non-material losses they have incurred and for ensuring that they can enjoy a decent and dignified retirement. Wow! How much do we all want to see a decent and dignified retirement? Restitution is also a way to correct the imbalance and inequality caused by the changes and to ensure that the women are not penalised for their sex and their age.

The WASPI women will have different views and demands in terms of what constitutes fair and adequate restitution. Some want a bridging pension or a lump sum payment to cover the gap between their expected and actual state pension age. There really has to be something, and we need to see that coming forward. The restitution that each woman should receive may also depend on their individual circumstances, such as their income, health and caring responsibilities.

--- Later in debate ---

[Chris Stephens (Glasgow South West) (SNP)]

First, I want to say how much of a pleasure it was on Friday to join the WASPI Glasgow women at the Mary Barbour statue, to mark International Women’s Day. The clear message from those women is that they are not going away and nor is this issue.

I want to make three quick points. The first, which other Members have touched on, is about the historical injustices that women born in the 1950s have suffered throughout their lives, whether it is not receiving equal pay—far too many of these women are still fighting for equal pay and looking for compensation for unequal pay in the workplace—or the fact that while going about their lives they could not, for example, hire goods or services, or even get a cheque book, without the express permission of their father or husband, because society at that time decreed that it was a man who was the responsible person. What a quaint and fanciful notion that is! We have to recognise the injustices these women have suffered throughout their lives, and certainly the fact that they were not told that their pension age was changing and that many of them would have to work for an additional five years.

Secondly, it is almost certain that the ombudsman will send this issue back to Parliament to say that Parliament must now decide how to resolve the issue and how to compensate. That much is certain. The Government could have grasped the nettle. They could have recognised that this was coming and that it was time to address this issue, along with the issues of compensation for the infected blood and Post Office cases. They could have done all those things.

That brings me to my third point, which is that justice delayed is justice denied. The longer the Government wait and do not address this issue, the more the price tag will go up. That is an inevitability. We had the announcement of a Budget last week that has £46 billion of unfunded tax cuts, which is £46 billion that could have addressed all three of the issues I have mentioned. When he is on his feet, I hope the Minister will tell us how this Government should resolve this matter, because it should be up to this Parliament to decide it, instead of trying to dump it on the next Parliament.

[Sir Gary Streeter (in the Chair)]

Thank you, colleagues, for your co-operation; we are now bang on time as we turn to the Front-Bench spokesmen. I call the SNP spokesperson.