Transitional State Pension Arrangements for Women

Debate between Helen Jones and Nicholas Dakin

Monday 1st February 2016 Westminster Hall

[Helen Jones]

The Chancellor’s financial calculations are always a little opaque, but I think that we are talking about something like £30 billion.

The Government have consistently undervalued these women and their contribution to the country through work, caring and childcare. These women are being forced into poverty, and they are angry, as they have every right to be, because they have been treated appallingly. Frankly, blaming the EU for the fiasco, as the Government have tried to do, will not work. I know that many MPs are being told to blame the EU in the standard letters that they send back. It is common for some Ministers to blame the EU if it rains three days in a row but, in this case, that is not correct.

EU directive 79/7/EEC promoted equal treatment in social security matters, but it specifically recognised that progress towards equal pensions would have to involve transitional arrangements. In fact, the European Commission’s 2007 report made it clear that it expected transitional arrangements to be made. What are other EU countries doing? Austria will equalise its state pension ages in 2033. France is doing that earlier—in 2020—but it is equalising them at 61. In fact, many European countries have a long transitional process in the move towards equalisation. The European Court of Justice judgment that is often cited applies to occupational pensions, not state pensions, which are specifically exempted under paragraph 1(a) of article 7 of the directive to which I referred.

The real reason behind this, as we heard earlier, is to save money. Again, the current Minister for Pensions agrees with that, because in an article for the Yorkshire Post—again, this was before she became Pensions Minister —she wrote:

“increasing state pension age saves significant sums, as millions must wait longer before their pension starts, but for many this is causing real hardship. Surely Ministers should be sensitive to the damage done to older people’s lives”.

Well, Ministers are not sensitive to that damage. The new Pensions Minister in particular is not sensitive to that damage, because she wrote to a member of Women Against State Pension Inequality—I congratulate it on its work—to say:

“there is no basis for me to demand spending public money when due process was followed.”

Well, let me ask this: who contributed to that public money? Many of those contributions came from women who have worked hard all their lives and have relieved the state of huge burdens through their caring responsibilities.

[Nic Dakin (Scunthorpe) (Lab)]

I congratulate my hon. Friend on the way in which she is pursuing this argument. Is not that the very point? Women such as the many constituents who have come to see me have contributed to the state throughout their lives. They have put in, but now they are not allowed access at the point when it is their turn to get support.

[Helen Jones]

My hon. Friend is quite right. That is exactly why women are so angry about the situation. They rightly feel undervalued and ignored.

There are steps that the Government could take, many of which were suggested during the passage of the 2011 Bill. The Government could limit the amount of time that someone has to wait longer for their state pension to a year, as my hon. Friend the Member for Foyle (Mark Durkan) suggested at the time. They could ensure that the age for pension credit remains in line with that under the 1995 Act. They could also exempt some of these older women from parts of the Work programme, because it is frankly appalling that when women who have worked all their lives are made redundant in their early 60s, they are put on the Work programme and treated like a bunch of workshy teenagers. That is degrading to those women.