Pensions Bill [Lords]

Fiona Mactaggart Excerpts

Monday 20th June 2011 Commons Chamber

[Mr Duncan Smith]

To be fair, I want to make a bit of progress, because a lot of people want to speak. If the hon. Gentleman wants to raise something else about the matter, I will give way to him later.

Pensions policy has not been updated accurately to reflect all the increases that I spoke about. I remind the House, however, that we are by no means alone in having to deal with this issue; others are making decisions about it. Ireland has already legislated for the pension age to be raised to 66 by 2014, and the Netherlands and Australia are increasing state pension age to 66 by 2020. The United States is already in that position, and Iceland and Norway are now at 67. Under existing legislation, the timetable for the increase to 66 in the UK was not due to be completed for another 15 years, yet the timetable was based on assumptions that are now out of date. The Pensions Act 2007 was based on ONS projections of average life expectancy from 2004. Those projections have subsequently increased by at least a year and a half for men and for women, so the situation is moving apace. That is why we are taking the necessary decision to look again at the timetable for increasing the state pension age. The Bill amends the current state pension age timetable to equalise men’s and women’s state pension ages at 65 in 2018 and then progressively to increase the state pension age to 66 by 2020. This new timetable will reduce pressures on public finances by about £30 billion between 2016-17 and 2025-26.

The impact of the changes on women has been debated enormously, focusing particularly on certain cohorts. All but 12% of those affected will see their state pension age increase by 18 months or less. I recognise that some 1% of those impacted will have a state pension age increase of two years, but it none the less remains the case that those reaching state pension age in 2020 will spend the same amount of time in retirement as expected when the 2007 Act timetable was being drawn up. That is an important factor. There will be no change to the amount of time that they will spend in retirement—some 24 years, on average. In fact, the women who are affected by the maximum increase will still, on average, receive their state pension for two and a half years longer than a man reaching state pension age in the same year.

[Fiona Mactaggart (Slough) (Lab)]

Which of the facts that the Secretary of State has cited was he unaware of 12 and a half months ago, when in the coalition agreement the Government signed up to not introducing these changes before 2020?

[Mr Duncan Smith]

As a coalition, we are, and continue to be, bound by the agreement. [Interruption.] The hon. Lady can shout at me in a second, but let me try to explain. There is a slight problem with that element of the coalition agreement. It was done in that way at the time, and that is fair enough, but we have since looked at it carefully and taken legal advice. The agreement talks about men’s pension age being accelerated to 66, which would breach our legal commitment to equalisation and then not to separating the ages again. There are reasons for needing to revisit that, and we have done so and made changes.

--- Later in debate ---

[Harriett Baldwin]

rose—

[Fiona Mactaggart]

rose—

[Mr Byrne]

I will give way to my hon. Friend the Member for Slough (Fiona Mactaggart), then I will give way to Government Members.

[Fiona Mactaggart]

I heard the Secretary of State refer in his speech today to legal advice that said that the Government could not keep to their original proposals in the coalition agreement. He did not make the House aware of why the Government cannot legally do what they originally intended, so has he made my right hon. Friend aware of why that is?

[Mr Byrne]

My hon. Friend makes an extremely good point, because I think that that was news to the House. We would certainly expect that legal guidance to be published before we get to the Minister’s winding-up speech. That guidance is a material point in a debate that is important to many people, as well as many right hon. and hon. Members, because this Bill has such a poor effect on women in this country—the people we represent.

Oral Answers to Questions

Fiona Mactaggart Excerpts

Monday 13th June 2011 Commons Chamber

[Maria Miller]

My hon. Friend is absolutely right. It is important that the organisations working with us in the development of the new personal independence payment use that opportunity to ensure that the people whom they represent are well informed. We need a new approach to disability living allowance. The Labour party has already agreed with that, although we are still waiting to hear exactly what the Opposition’s plan would be.

[Fiona Mactaggart (Slough) (Lab)]

The organisations that the hon. Lady read out quite quickly sounded like organisations representing people whose conditions do not vary hugely. There are people on disability living allowance who have conditions, such as multiple sclerosis, that can get hugely better and hugely worse. How much conversation has she had with organisations representing people with fluctuating conditions as well as those with progressive conditions?

State Pension Age (Women)

Fiona Mactaggart Excerpts

Wednesday 11th May 2011 Westminster Hall

[Annette Brooke]

I ask the hon. Gentleman to wait for me to identify the injustice. My point was about the cliff edge; there could be two women living next door to one another with one day’s difference in their birthdays, and there would be a cliff edge. Changes need to be phased in. In 2007, there was no phasing in, so some women missed out on as much as £28,000 over the course of their retirement because of one day. Whenever there is a sharp cut-off date, there is an injustice.

[Fiona Mactaggart (Slough) (Lab)]

rose—

[Annette Brooke]

I want to make a fairly brief speech.

We have a long history of injustice towards women and I am illustrating that with a few examples from the past. On many of those issues, the Minister has an excellent record in fighting for the cause of women, particularly the married women’s contribution and the cliff edge, so I feel that we could get a very sympathetic hearing today.

As the hon. Member for Erith and Thamesmead said, women born between 1953 and 1954 particularly will be hit very hard. Some 500,000 women will have their state pension age delayed by more than a year, 300,000 women will have it delayed by 18 months or more and a small but badly hit group of 33,000 women will have it delayed by exactly two years—just because they happen to be born in a particular month. That picks up my point about the cliff edge of the previous change, because there are parallels with this change. We should not say that because it happened in the past, there will always be a one-day cliff edge. There are always opportunities to look at things again.

[Fiona Mactaggart]

I agree that there is an injustice for people born within a day of each other when there is a sudden change, but there is a difference between this change and the one to which the hon. Lady refers. That change increased the number of women who had an opportunity to get a full pension, but this change will negatively affect some women. When people feel an injustice, the difference is this—if someone gets a good thing, it is not completely fair, but if all of us get an appalling thing, it is certainly unfair.

[Annette Brooke]

I am sure that the hon. Lady appreciates that I am trying to show that there are a lot of instances in which women have had a very unjust settlement, and this is yet another instance of that. We all have an opportunity to speak out against it now, when there is time to do so.

Obviously, the proposals to speed up the increase of the pension age will deny large numbers of people the notice they need to plan effectively for a later retirement, and I am concerned that the poorest and the unemployed could face real hardship as they struggle to manage without the state pension and benefits on which they were relying. As other Members have mentioned, this particular change is not in the coalition agreement. I shall give one example of the effects of the change on one of my constituents:

“My birth date is 10/11/1954. I reluctantly accepted the raise of my retirement age to 64 years and 7 months…Now I am shocked to hear I will now have my pension at 66 years of age. I have had no opportunity to plan for this increased time scale, what do I do?????”

That is the question: what do these women do?

“I have no private pension and I am now being forced to work another 18 months after starting work at 15 years of age!!!!! I’ve already missed out on retiring at 60, like my mum. The older we get, the goal posts are continually being moved.”

For me, that says it all.

We know that this is not about a large number of people, so money could be found by the coalition Government. We need to know how much it would cost to even out matters. This is an opportunity for the coalition Government to say, “We really do care about giving equal treatment to the citizens of this country.”

--- Later in debate ---

[Steve Webb]

I am grateful to the hon. Lady for raising the position of women in the pension system. Assuming that some of the pension reform proposals in the Green Paper that we published last month go ahead, for example the single flat-rate decent state pension, the group of women most affected by this change would be the first group of women to benefit, and potentially very substantially. At the moment, women draw a state pension of £40 a week, on average, less than men, but under the single-tier pension proposal, which I have been very involved in introducing, many women would be the main beneficiaries.

Various Members have raised the important issue of women whose pension rights have been hampered by time spent bringing up children or caring for relatives, and under the single-tier pension proposal a year spent at home with children or a relative will be worth just as much to a state pension as a year spent running a FTSE 100 company. So much do I take the view—in government as I did in opposition—that the work that men and women do, whether paid work or bringing up a family, is of equal value, that for the first time we are proposing that that be manifest in the pension system, and that will be transformative, particularly for women.

[Fiona Mactaggart]

Will the Minister agree to publish figures? I am interested in what effect the single-tier pension will have on women, and I am finding it difficult to work out how many women will be affected by the abolition of the state second pension and the cost of their different contributions. I am unaware of any figures working out how many women and men will be affected by the change respectively. I am not as sanguine as he is that all women will benefit. There are many women whose contributions to the state second pension are important to their retirement.

[Steve Webb]

On how the proposed single-tier pension will work, it is a Green Paper with options, so the sort of detailed figures for which the hon. Lady asks will be produced when we have identified which of the two options we will go for and refined the proposition. That information will be made available when the proposition is refined further.

To clarify, at the moment, many women in the age cohort that we have been discussing will have spent time at home with their children before the state second pension was introduced. Whereas the state second pension offers protection for time at home with children, the state earnings-related pension scheme did not. That set of women is approaching pension age. People have accused me of moving the goalposts. I am indeed moving the goalposts for those women, but in their direction. They will draw a state pension—yes, later, but for an average of more than 20 years. Compared with when we first started debating the changes in state pension age last summer, that is a significant difference.

Oral Answers to Questions

Fiona Mactaggart Excerpts

Monday 28th March 2011 Commons Chamber

[Maria Miller]

It is vital for such assessment centres to be fully accessible. I should be delighted to take up the point and report back to the hon. Lady.

[Fiona Mactaggart (Slough) (Lab)]

I am still confused after the Minister’s reply to an earlier question, in which she said that the proposal to cut mobility allowance for people in residential care homes had been withdrawn. Can she tell us why the proposal is still in the Health and Social Care Bill, and specify the nature of the continuing review of the proposal to which she and other Ministers have referred?

[Maria Miller]

The provision in the Bill is intended to ensure that there are no overlapping payments for anyone who is receiving other forms of Government money. That is very straightforward. As I told the hon. Member for Halifax (Mrs Riordan), the purpose of the review is to ensure that the most vulnerable members of our community are given the support that they need, and that the current confusion ends.

Oral Answers to Questions

Fiona Mactaggart Excerpts

Monday 14th February 2011 Commons Chamber

[Maria Miller]

Let me make it absolutely clear that there will be very clear ways in which such families can come to their own arrangements without incurring charges. If they feel that that is not possible, the statutory system will be there. Just to reassure the hon. Lady—the charges being put in place are only a fraction of the costs incurred in running the system. Indeed, the up-front charge that we are proposing for individuals on benefits is just one tenth of the cost of processing an initial application.

[Fiona Mactaggart (Slough) (Lab)]

The Minister has made much of her proposal to remove the mobility component from residents of care homes as one that will reduce overlaps, but there is one group of people for whom there is no overlap at all—children who are in boarding schools because they have special needs. Will she drop that proposal in relation to such children?

[Maria Miller]

I reiterate that we are still in consultation on this proposal and are listening carefully to all the issues that people raise. It is vital for children to stay in contact with their parents. The provisions for schools to do that are very clear and we will make sure that when school facilities are not available, there remains an ability to be eligible for disability living allowance, because children would not necessarily be resident in the home.

Welfare Reform

Fiona Mactaggart Excerpts

Thursday 11th November 2010 Commons Chamber

[Mr Duncan Smith]

The reality is that the hon. Gentleman should welcome the programme that I am introducing today, because it will improve the lives of the poorest in society. I am sorry that he chooses to cavil about this. My comment on buses was simply this: people on low incomes in London and many other cities recognise that it is sometimes necessary to travel to their places of work. That is the key point. Frankly, I do not need any lectures from him, and if he and his party—[Interruption.] No, they should be prepared to accept that the recession that he refers to is the recession that they left us.

[Fiona Mactaggart (Slough) (Lab)]

I am proud to represent a town that exists because it has work, and I am proud to have been part of a Government who, for the first time in nearly 20 years, reversed the increase in child poverty. However, I am concerned that the Secretary of State’s announcement will not achieve what I believe he intends to achieve. We know that the best way to tackle child poverty is to increase women’s income. In Slough, the average bus fare is about £3.50. His taper says that people will keep 35p in every £1 that they earn. If a woman is doing a job that she can get to while her children are at school—for four hours a day, say—she will have to work the whole time just to pay her bus fares, ending up with £4 more. Will he not take the advice of his hon. Friend the hon. Member for Kettering (Mr Hollobone) and do something about the cost of travel to work?

[Mr Duncan Smith]

The hon. Lady has to admit that the one group that will be hugely affected in a positive way will be women going into work, because so many are engaged in caring and work and in having to balance the two. They will be paid more for the hours that they work, because they will retain more of their money. Of course there might be disputes and debates about whether we need to support people with travel costs, but it is a bit rich for the Opposition to give us lectures about travel costs after they left us without having done anything about them at all.