Transitional State Pension Arrangements for Women

Debate between Graham Stringer and Richard Graham

Monday 1st February 2016 Westminster Hall

[Graham Stringer (in the Chair)]

I remind right hon. and hon. Members that interventions should be short. We are not doing very well at the moment.

[Richard Graham]

Thank you, Mr Stringer; I am doing my best to take interventions. My right hon. Friend the Member for Basingstoke (Mrs Miller) made a very reasonable point. The previous Labour pensions spokesman said that, in the four months in which he was in the role, he was

“grappling with how best to work out the transitional provisions.”

I hope that we hear more about what the Labour party intends to do in practice.

One of greatest difficulties in this debate is about the word “fair”. Over the weekend, a lot of WASPI campaigners were tweeting me back and forth about various issues regarding the debate and their e-petition. One of the most interesting views came from a woman born in early 1960 who made a point about what would happen were the main WASPI campaign ask to be given—that is, if everybody born in the 1950s were backdated as if they had been born before 1950. She asked why she and her contemporaries should bear the burden on behalf of those who would effectively be given an exemption from the changes, and who were born only a few months before her.

The problem is that whenever a change is made, some will always be relatively better off and some will be relatively worse off. I strongly support women born in the 1950s—as I hope I made clear from the fact that my wife and sisters are both girls of the 1950s—but to imply that somehow they must take preference over those born a few months before or after is a different kind of potential unfairness.

The second point of the debate is all about communication. Communication is at the heart of what many of the campaigners feel is unfair about the changes made in 1995 and 2011. However, it is simply not true that nobody knew, as the hon. Member for Paisley and Renfrewshire South (Mhairi Black) claimed in the debate in the main Chamber. In 2004 the then Labour Government estimated from their research in the Department for Work and Pensions that 75% of those affected had been told. A separate study by the DWP—not yet referred to in debate, but unearthed by the pensions correspondent at the Financial Times over the weekend—demonstrated that seven out of 10 people spoken to knew about the change in the pension age. The truth is that we will never know the precise figure. We will never know exactly how many people knew, did not know, and might have been told about it but ignored it because it was all a long way in the future—20 years away.

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[Graham Stringer (in the Chair)]

That is not a point of order, but the point is well made.

[Richard Graham]

May I seek your guidance, Mr Stringer? I have tried to be as generous as I can in taking interventions.

[Graham Stringer (in the Chair)]

You have the floor, but there are 20 people waiting to speak. When you sit down, I intend to impose a time limit.

[Richard Graham]

Thank you. I have got the message loud and clear, and I hope that Members will respond accordingly—[Hon. Members: “It’s you!”] I was trying to help colleagues on both sides of the Chamber who are standing up and trying to intervene.

The last point raised by the petition is on the new state pension, the way in which it has been communicated and the implied fairness, or unfairness, of it. It is time that we all recognised that the new state pension has huge benefits for many people, and particularly for women. For the first time in the history of pensions in this country, women who have spent years out of the workplace, either bringing up children or caring for their parents, will receive those years as contributions to national insurance, which will determine what their state pension is. [Interruption.] That is a revolutionary change, whether Members care to recognise it or not, and it is one that we should all support.

Secondly, the changes made to the composition of the state pension, particularly the triple lock, mean that the absolute amount of money received by people on the new state pension this April will already be £1,000 a year more than in 2010. Thirdly, it has been calculated that, in the first 10 years of the new state pension, some 650,000 women will receive £416 a year more than they would have received without the new state pension.

[Mr George Howarth]

On a point of order, Mr Stringer. As the hon. Gentleman moves into the 22nd minute of his speech, will he give us an indication of its likely future proportions, so that we can pace ourselves?

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[Graham Stringer (in the Chair)]

Mr Graham has the floor. He has heard the points, and I intend to impose a time limit when he sits down.

[Richard Graham]

Thank you, Mr Stringer.

I have covered the three main points that I wanted to raise today, and it is worth recapping the implications—[Hon. Members: “No!”] I will be very brief. First, many people in this House—

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[Graham Stringer (in the Chair)]

Again, that is not a point of order, but you have made your point, Mr Hoare, and I think Mr Graham has heard it.

[Richard Graham]

Thank you, Mr Stringer. In conclusion, the WASPI campaign has been well put together, and the e-petition has been a great success; that is why we are all here. I congratulate WASPI. All the points made by the campaign about communication in the past will have been noted and largely accepted by almost everybody in the House.

I have emphasised the lessons to be learned, in terms of what the DWP can take from this debate for any future changes made to the state pension age and how they are communicated, but WASPI’s central ask—changing the state pension received by people born in the 1950s—is not favoured by many of the campaign’s supporters, who understand that £30 billion or more is not an appropriate ask when there are so many other good causes on which money should be spent. On that basis, I do not believe that this House should support the e-petition’s call for fair transitional arrangements, which amount to that.

[Graham Stringer (in the Chair)]

Before I call Mhairi Black, I am imposing a five-minute limit on speeches. If Members take interventions as well as taking up the whole five minutes, either Mr Hanson or I will have to reduce that limit.