Oral Answers to Questions

Heidi Alexander Excerpts

Monday 11th March 2013 Commons Chamber

[Kate Green (Stretford and Urmston) (Lab)]

7. What recent assessment he has made of the effects of the Government’s proposal for a single-tier pension on women born between 6 April 1952 and 6 July 1953.

[Heidi Alexander (Lewisham East) (Lab)]

16. What recent assessment he has made of the effects of the Government’s proposal for a single-tier pension on women born between 6 April 1952 and 6 July 1953.

[The Minister of State, Department for Work and Pensions (Steve Webb)]

With permission, I will answer this along with Questions 7, 8 and 16.

We have today published a document analysing the pension outcomes of this group of women. Overwhelmingly, women in this group—who reach state pension age up to three years before a man born the same day—would get more pension benefits over their lives than a man with the same national insurance record.

--- Later in debate ---

[Steve Webb]

As the hon. Lady says, we have a system of not only paid contributions, but credits. Although 35 years will be needed for the full £144, even a woman with 30 years will get thirty thirty-fifths of £144, which is more than the current basic pension of £107. So, many women will benefit from the new rules.

[Heidi Alexander]

The Minister says that 85% of women will benefit under the proposals that he has announced today, but what about the 15% who do not?

[Steve Webb]

It is gratifying that the main Opposition response to our proposals is that they want more people to benefit from them. The hon. Lady is right: there is a set of women—a small number of women—who would do better under the new system than the old, but overwhelmingly the vast majority will do better under the current system. She raises an issue about allowing people to choose whichever was the better, but it is not always certain—at the moment—what the better answer would be for their entire retirement. So we could not actually advise people in advance which category they would be in.