Social Security

Debate between Debbie Abrahams and Paul Masterton

Monday 4th March 2019 Commons Chamber

[Paul Masterton]

I should point out that I spent 10 years as a pensions specialist before coming into this place. The hon. Lady is not actually correct. What has happened is that the increase in life expectancy is slowing down. That is not a UK-only phenomenon; it is happening right across the western world because of very large advances. It is not unreasonable or linked to austerity. Longer lives mean that there will be an increasing number of older people in our society; the proportion of people aged 85 and over is projected to double over the next 25 years.

[Debbie Abrahams]

I am afraid that the hon. Gentleman has made an error. Public Health England published a report, alluded to by the hon. Member for Glasgow Central (Alison Thewliss), that says exactly that life expectancy is flatlining for certain groups but going backwards for others and for certain regions. Not only that, it pointed the finger at austerity as the cause.

[Paul Masterton]

I thank the hon. Lady for that intervention, but I would point out that that is not what the hon. Member for Glasgow Central (Alison Thewliss) actually said.

I want to address the order, which delivers on the triple lock to the state pension and provides an extra £3 billion for pensioners in 2019-20, uprating in line with earnings at 2.6%. The UK has a system whereby today’s taxpayers pay for pensions currently in payment. When people are living healthier lives for longer, spending much greater proportions of our lives in retirement, that is both unfair and unsustainable. The figure has already grown from 26.5% in 1981 to 33.1% in 2013. In 2010, the basic state pension stood at 16% of average earnings. Thanks to the triple lock, it will soon be around one quarter of average earnings. That has contributed to pensioner poverty falling significantly in recent years and the Government can be rightly proud of that. By some estimates, typical pensioner households now have higher incomes than their working-age counterparts. The triple lock has therefore served its purpose, and I would argue that it cannot be maintained indefinitely.