State Pension Age (Women)

Huw Merriman Excerpts

Thursday 7th January 2016 Commons Chamber

[Huw Merriman (Bexhill and Battle) (Con)]

I congratulate the hon. Members for Paisley and Renfrewshire South (Mhairi Black) and for Worsley and Eccles South (Barbara Keeley) on securing this debate.

In the past few months, I have met a number of my constituents who have been impacted by these changes. These constituents have detailed how the state pension age increases have had an impact on them owing to their being on the wrong side of the dateline. I have every sympathy with anyone impacted by these changes, and I can see why they have felt so much frustration. I congratulate the WASPI campaign on driving this debate.

Although it is true that any criteria changes regarding pensions, benefits or taxation in general are always going to have an impact on some people, I am conscious that the individuals we are talking about have, in many circumstances, worked for decades on the basis that they would receive their pensions at a prescribed time. However, I am also conscious of the fact that when actuaries calculated life expectancy, and therefore the number of years for which a pension would pay out, they did not expect it to reach the level currently enjoyed, and they would not have anticipated the current rising levels of health. These factors have driven successive Governments, and most OECD nations, to increase the pension age.

[Alison Thewliss (Glasgow Central) (SNP)]

Does the hon. Gentleman not however accept that life expectancy is not the same for everybody everywhere? There are places in Glasgow where life expectancy is significantly lower than in other parts of the country.

--- Later in debate ---

[Huw Merriman]

I absolutely take that point, but it would be naive not to recognise that as we live and expect to live healthier lives, we not only can but want to work for longer.

[Dr Philippa Whitford]

Will the hon. Gentleman give way?

[Huw Merriman]

No. I will make some progress, if I may.

The question remains: what, if anything, can be done to lessen the impact on those who will now have to work for longer before qualifying for their state pension, particularly those who it can be demonstrated were not notified over time, as they should have been?

[Mims Davies (Eastleigh) (Con)]

Does my hon. Friend agree with me and my constituents in Eastleigh that the notice period for some of the women was simply far too short? We hope that the Minister will agree it is a great cause of regret that the largest group of women affected by the pension age increase sadly got less than eight years to plan for it.

[Huw Merriman]

I thank my hon. Friend for making that point. I know she has led a campaign in her constituency to that end. Ideally, we will hear such a statement from the Minister. I believe pension changes require 10 years’ notification and that 15 years’ notice was given for the 1995 changes, but, as she mentioned, the notice period for the 2011 changes was eight years, and even down to five years. As I was not in this place at that time, I am certainly very keen to find out more from the Minister.

Where I have issues with the motion is that although I agree very much with the concern raised, I do not ultimately see a remedy. I stood on a manifesto commitment that pledged us to deliver a budget surplus by 2020, which means that compensation for this matter would have to be paid for by another group of my constituents.

I have real concerns about another age group in my constituency—those in their 20s and 30s. They are sometimes referred to as the packhorse generation because they are saddled with debts from university, which I and many others of my age group and those older than me did not have to endure. They are not in receipt of occupational pension schemes. They are paying high rents and struggling to afford a home of their own, and they are likely to be the subject of pension changes in decades to come if life expectancy continues to increase.

[Mhairi Black]

Will the hon. Gentleman give way?

[Huw Merriman]

No. With respect to the hon. Lady, I will make some progress, if I may.

I am keen for the Government to assess what more can be done to help the women impacted by the pension changes, but I am conscious that, before my election to this place, they conducted a review and allocated more than £l billion to mitigate the impact on the worst affected. Further mitigation, if introduced, would then reveal the next age group to be impacted, and we would never be able to move on. If my Government’s manifesto is to be enacted, such further mitigation will have to be paid for by others in the form of increased taxes.

The issue of pensions is becoming increasingly vexed. It is undoubtedly the case that post-retirement life expectancy is now much greater than was envisaged when pensions calculators were put in place. Additionally, with the advances made to allow those in their 60s to remain fit and active, many people in their 60s and beyond are working in a manner that was not envisaged when those pensions calculators were put in place. This is a general change in life and working age expectancy—we all rightly celebrate it, because it shows that people are living longer and leading fitter lives in their advanced years—but it means that there is a funding gap. To avoid placing a financial obligation on those in their 20s and 30s, who are currently struggling to get on, that gap has required the country to revise the pension age to take into account the changes in life and work expectancy.

[Mhairi Black]

rose—

[Huw Merriman]

I will take one last intervention as this is the hon. Lady’s debate.

[Mhairi Black]

Does the hon. Gentleman not see that by forcing such women to continue to work until they are 66, he is contradicting himself? One of the reasons why people my age cannot get work is that it is being done by those trying to secure some income until they reach the pension age.

[Huw Merriman]

I thank the hon. Lady for making that point, but I do not agree with her. The reality is that if the change had not been implemented, £30 billion would have had to be found from elsewhere. I think there is an additional £8 billion in tax revenue to be found as well. Where would that money come from if not from the generation that she knows well?

[Mhairi Black]

rose—

[Huw Merriman]

I will continue to make progress. To me, it is a complete contradiction to say, on the one hand, that something needs to be done, but, on the other, that it will not have an impact on any other taxpayers over the generations.

Finally, I have the greatest sympathy for those caught by the changes who have had to revise their plans accordingly. This, however, is a settled matter, and I worry about what the impact will be on others if changes are now made.

[Several hon. Members rose—]