Pensions Bill [Lords]

Debate between Gregg McClymont and Hywel Williams

Tuesday 18th October 2011 Commons Chamber

[Gregg McClymont]

The hon. Lady makes a good point. That is an issue that my right hon. Friend the Member for Croydon North (Malcolm Wicks) often raises: averages can hide great disparities in social class as well as gender. That is a very important issue and I am sure the Minister is well aware of it.

The principle of reasonable notice is broken by the Bill. The Government’s concessions do not meet the fair and proper notice test, which is a principle of crucial importance. The second test we set for the Government was the proportionality test. They are unfairly and disproportionately singling out women aged 57 and 58 for harsher treatment. I do not suggest that they have singled them out deliberately—of course not—but I do say that they are not doing enough to compensate those women who have lost out in a birth date lottery that is not of their making. These women cannot, on the whole, afford the burden that the Government are placing on them, and they have certainly done nothing to deserve it. The Government should not make those women carry the heaviest burden of rising longevity—that is unfair and unjust. Some 500,000 women will still have to wait between a year and 18 months longer than they would have to reach state pension age. As I have previously stated, 330,000 women—one third of a million—will have to wait exactly 18 months longer, with the psychological and financial burdens that imposes.

[Hywel Williams (Arfon) (PC)]

There is a further, regional unfairness in relation to the availability of work. If people are to work for longer, where are the jobs to come from? That will affect the hon. Gentleman’s constituency and mine as well as those in the north-east of England and many other places. Also, if people are filling jobs at the ages of 65 and 66, the knock-on effects on youth unemployment will be substantial.

[Gregg McClymont]

The hon. Gentleman makes a very important point. If women and men are to work for longer, we have to look at the figures for employment. My understanding is that up to 38% of women aged between 56 and 60 are not in employment at the moment. That is a real issue, which I am sure the Minister is considering.

The Bill fails the two tests, in that it is unfair and there is an undue lack of notice. It also fails the proportionality test. Take the case of Laura Davis, who is 57, single and suffers from a heart condition and acute osteoarthritis, which hampers her mobility. She works full time but her commute is a struggle. She was hoping for a dramatic revision of the Pensions Bill’s terms. Laura, from Watford, Hertfordshire says:

“It is a shame the Government could not meet us half way and say that no one in my age group would be required to work longer than a further 12 months….That would have been a better compromise.”

That is a compromise that the Opposition suggest, and it is why we seek to amend the Bill through our amendments to part 1, which I shall now address.

Our amendments do meet the tests of due notice and fair treatment for those half million women, and would ensure that no women would wait more than an extra 12 months to reach their state pension age. Our amendments would also bring forward the uplift in state pension age to 66 for both men and women, from 2026 to 2022, because we recognise that, as the Minister and other Government Members have emphasised, this is a difficult issue. There are no simple answers, and tough decisions will have to be taken. Our amendments would balance the sustainability of the pension system with the need to treat all women fairly. They offer a substantial saving of £20 billion, but not at the expense of those women. As I emphasised earlier in response to some amendments, the difference in annual savings from our amendments versus the Government’s is equivalent to 0.1% of central Government spending in 2011-12, or 1.3% of the Government’s annual pensions budget. Given the undue, disproportionate and unfair burden being placed on such women, I do not think that is too high a price to pay.