State Pension Changes: Women

Debate between Gavin Newlands and Paul Maynard

Tuesday 12th March 2024 Westminster Hall

[Paul Maynard]

I have given way a number of times, and I have been very generous. I am conscious that I need to finish my contribution and allow the hon. Member for Strangford to comment. I am sorry, and if there is time towards the end I will try to give way, but I need to set out the factual information that Members have been asking me to deliver, so I will make some progress.

The announcement in 1993 of the decision to equalise the state pension age addressed a long-standing inequality between men and women. Changes to state pension age were made over a series of Acts by successive Governments, following public consultations and debates in both Houses of Parliament. All women after 5 April 1950 and all men born after 5 December 1953 are impacted by state pension age changes. The state pension age is currently 66, and is due to rise to the age of 67 between 2026 and 2028, as confirmed by the recent Government review of state pension age. The Government also committed in the last review to conduct a further review within two years of the next Government, to consider the age of 68. The further review will be able to consider the very latest evidence.

The reforms have focused on maintaining the right balance between the affordability and sustainability of the state pension, and fairness between generations. Women retiring today can still expect to receive the state pension, but over 21 years on average, which is over two years longer than men. If equalisation had not taken place, upon reaching the age of 60 women would be expected to spend on average over 40% of their adult lives in receipt of the state pension.

I will say a few words about the processes of the ombudsman’s investigation, for clarification and to place them on the record. The Parliamentary and Health Service Ombudsman published its stage 1 report on 20 July 2021. PHSO found maladministration in the steps that the Department took between 2005 and 2007 in relation to notifying the women affected. In December 2022, the PHSO submitted its stage 2 findings and the original stage 3 findings for comment, and published a high-level summary on its website, concluding that the maladministration had caused injustice.

Following the PHSO’s stage 2 findings in December 2022, the WASPI campaign initiated judicial review proceedings against the PHSO, arguing that the ombudsman’s approach to calculating when letters should have been sent ignored pauses in the DWP’s letter-writing campaign, which meant that women should have had notice far earlier than the ombudsman had assumed and could therefore have made different decisions to avoid some of the financial impact. Following an agreement between WASPI and the PHSO, the High Court granted a consent order quashing the PHSO’s final stage 2 report in May 2023. The consent order specifically requested that the PHSO revisited those sections of the stage 2 report dealing with the 28-month delay calculation. The stage 3 provisional view on remedy had not been finalised by the PHSO, so it did not require consideration by the court.

We responded to the provisional stage 3 report in early February 2023. The PHSO sent all parties to the complaint a revised provisional stage 2 report in November 2023. That is the report whose publication we await.

[Gavin Newlands]

Will the Minister give way?

[Paul Maynard]

I have already given way, and I am running out of time. I do apologise.

I have listened carefully to the arguments that have been made today. I would like to set out further the range of support available both for those making provision for their retirement and for those who have reached state pension age.

In 2016, the state pension was reformed with the introduction of a new state pension to be simpler and more sustainable. It had the clear objective of providing the foundation for private saving. In this way, the state provides a base to which people can add to provide the pension they want through their retirement.

The new state pension improves outcomes for many women, carers and self-employed people, who often did less well in the past. State pension outcomes are projected to equalise for men and women more than a decade earlier than they would have under the old system. On average, women receiving the new state pension receive about £18 a week more than women under the pre-2016 system. Under the new state pension system, women currently receive an average of 97% of the amount that men receive, compared with 85% under the pre-2016 system.

Automatic enrolment has helped millions more women to save with a pension, many for the first time. Participation rates for women are catching up with those for men. Pensions participation among eligible women working in the private sector was at 86% in 2022, up from 40% in 2012.

Pension credit is extra money to help with daily living costs for people over state pension age and on a low income. It tops up a person’s other income to a minimum of £201.05 a week for single pensioners and £306.85 a week for couples. People with a severe disability, carers and those who are responsible for a child or young person who lives with them can get more. Pension credit can also include extra amounts for certain housing costs such as ground rent or service charges. The pension credit case load is just under 1.4 million people, of whom 66% are female; in fact, of the total case load, 63% are single women. People receiving pension credit may also get help with other costs, including rent, via housing benefit, and council tax.

The latest statistics show that by 2021-22, the poverty rate for pensioners had decreased by two percentage points since 2010. For both female and male pensioners, there was a decrease of two percentage points over the same period. In 2021-22, there were 200,000 fewer pensioners in absolute poverty, after housing costs, than in 2010. By 2024-25, working-age and extra-costs disability benefit rates will increase by 6.7%, and relevant state pension rates, including the standard minimum guarantee in pension credit, by 8.5%, following the 10.1% increase in April 2023.

Business of the House

Debate between Gavin Newlands and Paul Maynard

Thursday 11th January 2018 Commons Chamber

[Paul Maynard]

The hon. Gentleman is right to raise this matter. He will have heard me say earlier that where longer journeys times were involved, we had a full public consultation on the decision. I ask him to bear in mind what I also said to the hon. Member for Glasgow South (Stewart Malcolm McDonald), which is that I would like him to focus as much as possible on the outputs of the process, which will lead to more work coaches assisting his constituents.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

The Scottish Government have now twice written to the outgoing Secretary of State at the Department for Digital, Culture, Media and Sport, asking her to intervene in order to save jobs in the culture and sports sectors following the severe decline in lottery revenues seeing huge cuts to the money going to devolved sports and culture bodies. May we have a debate on the importance of sport and culture, and on how we plug the huge gap in resources causing these sectors to suffer?

[Paul Maynard]

I will certainly mention that point to the Leader of the House, who will want to ensure that the hon. Gentleman gets the response he expects. At the same time, I urge him to consider the various avenues for debates in this place to find an appropriate forum to air his concerns.