State Pension Age: Women

Ian Blackford Excerpts

Wednesday 30th November 2016 Commons Chamber

[Ian Blackford (Ross, Skye and Lochaber) (SNP)]

I beg to move,

That this House is concerned that the Government is not taking action to alleviate the injustice facing women affected by the acceleration of the increase in the state pension age, despite the House previously voting in favour of such action; welcomes the Landman Economics report into the impact of the changes to pension arrangements for women born in the 1950s, which identifies an affordable solution which would slow down that increase in order to give adequate time for women affected by the acceleration to make alternative arrangements; and calls on the Government to work with the Women Against State Pension Inequality and Women Against State Pension Inequality Voice campaigns further to explore transitional protection for those affected.

It is a pleasure to move this motion in the name of the leader of the Scottish National party, my right hon. Friend the Member for Moray (Angus Robertson), and many of my right hon. and hon. Friends. We have long argued that the Government need to slow down the pace of the increase in women’s pensionable age, and that the increase in pensionable age is happening over too short a timescale. There has also been an argument about whether women were given enough notice of the increase in their pensionable age. Indeed, some Government Members, such as the hon. Member for Gloucester (Richard Graham), have conceded that there were issues with communication. That is putting it mildly.

Thanks to freedom of information requests, we learned two weeks ago that only in April 2009 did the Department for Work and Pensions begin writing to women born between April 1950 and April 1955, and it did not complete the process until February 2012.

[David T. C. Davies (Monmouth) (Con)]

Will the hon. Gentleman give way?

[Ian Blackford]

I will make some progress, and then I will give way.

The DWP wrote to women to inform them about changes in legislation that go back to the Pensions Act 1995, but it did not start the formal period of notification for 14 years. To take 14 years to begin informing people that the pension that they had paid in for was being deferred—that is quite something. Can we imagine the outcry if a private pension provider behaved in such a way? There would be an outcry in this House and, no doubt, legal action. This is quite stunning when we consider that entitlement to a state pension is earned through national insurance contributions, which many women have made for more than 40 years.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Does my hon. Friend agree that these pension entitlements are not a benefit or a privilege but a contract, and they should be honoured?

[Ian Blackford]

My hon. Friend makes an important point. We are talking about women who have paid national insurance contributions on the basis that they would get a pension. This is not a benefit. It should be a contractual arrangement between the Government and the women involved, and that is what the Government have wilfully removed.

[David T. C. Davies]

Given the hon. Gentleman’s strong view on the matter, could he tell us whether the Scottish Government have written to pensioners in Scotland about it? Could he also tell us whether the Scottish Government are going to use their many fiscal and tax-raising powers, and their huge budget of some £30 billion, to compensate women in Scotland?

[Ian Blackford]

The hon. Gentleman might treat pensioners in Scotland and the rest of the UK with a little bit more respect than he has shown by asking that nonsense of a question. Just in case he does not know, pensions are a reserved matter. I would very much like the Scottish Government to have responsibility for pensions. Let us be quite clear: if this Government gave us access to the national insurance fund, we would not treat pensioners in such a shabby way as the Government are doing. That is the reality.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I want to go back to the first part of the hon. Gentleman’s argument, when he described the absolute injustice that many of the women who are affected feel. I have met many from my constituency and from across Wales who feel that this is a terrible thing, which must be righted. They expected something; they are not getting it and we need to right that injustice.

[Ian Blackford]

I thank the hon. Gentleman for that point, and he is absolutely spot on. This is about justice and fairness. It is about people who have paid into a pension and who expected to get that pension—in the case of most of these women, at age 60. The discovery that they were not given adequate notice is a clear reason why the Government must change course and act in a responsible manner.

[Mr Jim Cunningham (Coventry South) (Lab)]

The hon. Gentleman has spoken in many debates on this issue, and I pay tribute to him for that. The situation gets worse. The Government, through the back door, are examining the triple lock for existing pensioners. More importantly, responsibility for television licences for pensioners over 75 is being shoved on to the BBC, which will get the blame instead of the Government.

[Ian Blackford]

Again, I find myself agreeing with the hon. Gentleman.

As a House, we must reflect on the situation in which there are still 1.2 million pensioners in this country living in poverty. I am ashamed when I hear Members of the House saying that we should examine the triple lock, because we should protect our pensioners. One thing on which I will give an absolute commitment is that if we had responsibility for pensions, the triple lock would be secured by the Scottish National party. Pensioners would be secured with the SNP.

[James Cartlidge (South Suffolk) (Con)]

Will the hon. Gentleman give way?

--- Later in debate ---

[Ian Blackford]

I will make some progress and then take more interventions. I am aware that many people want to speak.

The Government have changed the entitlement for something that women have paid in for with an expectation of retiring at 60. When the goalposts were moved, the Government could not get around to informing the women affected in a timely manner. A woman born on 6 April 1953, who under the previous legislation would have retired on 6 April 2013, received a letter from the Department for Work and Pensions in January 2012 with the bombshell that she would now be retiring on 6 July 2016. That is three years and three months later than she might have expected, but she received only 15 months’ notice. That is what this Government have done to many women throughout the United Kingdom: 15 months’ written notice on what they thought was a contract they had with the Government, but which has now been ripped up. That is the contempt that this Government have shown for the 2.6 million Women Against State Pension Inequality campaign women throughout the UK.

[George Kerevan (East Lothian) (SNP)]

Does my hon. Friend agree that the attack was made on the WASPI women because they were an easy target, and that it is the first stage in a Conservative plan to downsize and dismantle the state pension altogether?

[Ian Blackford]

My hon. Friend may well be right. The Government are of course hoping that with the passage of time this issue will go away, but it will not go away, because the women are angry. If they do not begin to recognise the need to do something, each and every Member of the House will have the WASPI women coming to their surgeries and demanding action. Not only will they be demanding action, but that will run the risk that this Government will be taken to court.

[James Cartlidge]

The hon. Gentleman is being generous in giving way. Is it still his policy to pay for this change from the national insurance surplus?

[Ian Blackford]

I will come on to cover that point, but the fact remains that the national insurance fund will be sitting with a surplus of close to £30 billion by the end of this decade. There will be £30 billion of contributions in the national insurance fund. There is no question but that the Government can afford to do this: there is a surplus. The national insurance fund has to retain two months’ cash flow, but that can still be done by putting in place what we are asking the House to do today, which is—as in the Landman report—to push back the increase in women’s pensionable age and to make sure that the women worst affected get recompense and fairness.

[Mr Dennis Skinner (Bolsover) (Lab)]

The hon. Gentleman has mentioned that the WASPI women will not go away. That is one of the most delightful things about them. Way back, we carried a vote on a Back-Bench motion supporting them in this House. They were not satisfied that there had already been a debate in Westminster Hall, and they were not satisfied that they were holding meetings in every constituency, city and town in Britain. They are like the Grunwick women of 40 years ago, the little Gujarati women who would not give in, and the Tory Government had better realise that the WASPI women ain’t going to give in either.

--- Later in debate ---

[Ian Blackford]

The hon. Gentleman is absolutely correct. He is right that the WASPI women are not for giving in, and those of us on the Opposition Benches—and, I hope, some Conservative Members—are not for giving in either.

[Ian Murray (Edinburgh South) (Lab)]

Will the hon. Gentleman give way?

[Ian Blackford]

I want to make some progress, but I will let the hon. Gentleman in later.

The Government, despite not giving reasonable notice, have so far not apologised for how they have treated these women. It is utterly, utterly shameful, and it raises the question: how much notice should be given for changes to the state pension age? The Pensions Commission, which reported in 2005, suggested that at least 15 years’ notice be given on any further increase in pensionable age—15 years, not the 15 months given to so many women. Will the Government not recognise that appropriate notice has to be given and make changes?

Given the Government’s failure to give proper notice, I tabled a written question to the Secretary of State, which I received an answer to yesterday. My question was:

“To ask the Secretary of State for Work and Pensions, what his policy is on the minimum written notice to be given to people who will be affected by future changes to the state pension age.”

I received the following response:

“The Government has committed not to change the legislation relating to State Pension age for those people who are within 10 years of reaching it. This provides these individuals with the certainty they need to plan for the future. We recognise the importance of ensuring people are aware of any changes to their State Pension age and we use a number of different means to do this…Anyone can find out their State Pension age with our online calculator or the ‘Check your State Pension’ statement service.”

According to the Minister who responded, the Government accept that they should not change legislation for those within 10 years of pensionable age. That is all well and good, but what is the point if they do not inform those directly affected?

Yesterday, in response to a further question, a Minister stated that,

“following the Pensions Act 1995, State Pension estimates, issued to individuals on request, made the changes clear.”

“On request”! It should not be done on request. People should not have to ask the Government to inform them; that is this Government’s responsibility. It almost seems like a script from the comedy, “Yes Minister”, rather than a Government acting in a proper manner.

[Ian Murray]

The hon. Gentleman has been dogged in pursuing this matter with colleagues from all Opposition parties. He mentioned “Yes Minister”. In 2011, I sat on these Benches as the then Liberal Democrat Minister pushed through the Pensions Act. Is he as astonished as I am that, having now left the House, that former Minister now says that the Act was wrong and unfair to women?

[Ian Blackford]

The hon. Gentleman is absolutely correct that the previous Pensions Minister has made these comments. In fact, the last Pensions Minister in the other place, Baroness Altmann, made similar comments. Everyone can see the deficiencies in the Government’s policy except the Government themselves.

[Mr Shailesh Vara (North West Cambridgeshire) (Con)]

If the former Pensions Minister is to be referred to, it would be helpful to put the facts correctly. He said that the difference required was £30 billion. He went to the then Chancellor of the Exchequer and Prime Minister and asked for £3 billion. Then, when he was given a concession of £1.1 billion, he said, “That’s a hell of a lot of money.” So let us be clear: the difference was £30 billion but he only asked for £3 billion, which is a tenth of what the hon. Gentleman is arguing about.

[Ian Blackford]

We are not talking about concessions; we are talking about these women’s pension entitlement. How dare the Government talk about concessions, when people have paid into their pension and deserve to get it!

This is not a comedy but the reality of a Government letting women down.

[Callum McCaig (Aberdeen South) (SNP)]

There are suggestions from Conservative Members that money does not grow on trees, and that is correct, but this money came from these women paying in through national insurance. It did not grow on trees; it came, hard-earned, from their own pockets.

[Ian Blackford]

My hon. Friend is quite correct. We keep hearing about fiscal responsibility and how we cannot afford it, but of course we can, because the surplus is there in the national insurance fund.

When the new Prime Minister took office, the first thing she did was bring a motion before the House asking us to renew the Trident missile system, and effectively every single Conservative Member went through the Lobby and gave the Government a blank cheque. They can invest in weapons of mass destruction but they are not prepared to give women pensioners their just deserts.

[Several hon. Members rose—]

[Ian Blackford]

I will take some more interventions later, but I must make some progress.

As I have mentioned, this is not a comedy; it is the reality of a Government letting women down. The failure to write to those affected is a failure of responsibility. It is an abrogation of responsibility. To pass the buck and say that anyone can use the online calculator is, frankly, stunning. All prospective pensioners ought to be treated with respect. Some 2.6 million women were not effectively communicated with, and many are now struggling to cope financially with a later pensionable age than the one they had planned for.

Let us look at what is taking place currently. I have highlighted the current sharp increases in pensionable age, but they need to be gone over again for the simple reason that, so far, the Government have simply not got it and will certainly need to do so. A woman born on 6 March 1953 will have retired on 6 March 2016 at the age of 63. A woman born a month later, on 6 April 1953, will have retired on 6 July aged 63 and three months. A woman born on 6 May 1953 will have retired a few days ago, on 6 November, aged 63 and six months. A woman born on 6 June will have to wait until 6 March 2017, when she will be aged 63 and nine months. A woman born on 6 July 1953 will not get her pension until her 64th birthday in July 2017.

[Graham Evans (Weaver Vale) (Con)]

Will the hon. Gentleman give way?

[Ian Blackford]

I hope that the Government are beginning to get the picture. For each month that passes, women’s pensionable age is increasing by as much as three months. We should just dwell on that—a three-month addition to pensionable age for each month that someone was born later than their neighbour, friend or colleague.

I spoke about a woman born in March 1953 who retired this year at age 63, but a woman born a year later, in March 1954, will not retire until September 2019, when she will be aged 65 and a half. [Interruption.] Conservative Members seem to think that this is funny, but we are talking about women who are being significantly disadvantaged over too sharp an increase in women’s pensionable age. Those Members might find that acceptable, but I am afraid that I, my colleagues and many millions of other people in the country certainly do not. A woman born six months later, in September 1954, will have to wait until she is 66 in September 2020. Over an 18-month period, a woman’s pensionable age will have increased by three years.

As we keep saying, we are not against equalisation of the state pension age—[Interruption.] My colleagues and I have said that in every speech we have given in this House. We have made it crystal clear, as have the WASPI women, that we agree with equalisation. It is the pace of change that is the problem, and Conservative Members are burying their heads in the sand over it and are refusing to face the reality.

[Mhairi Black (Paisley and Renfrewshire South) (SNP)]

I must echo the very clear position that my hon. Friend has outlined. Does he agree that anybody who believes that, purely because someone is a woman and happens to have been born at a certain time they should lose out, is advocating a very warped and strange definition of equality?

[Ian Blackford]

Absolutely. Of course we have to face the gender inequality that has been with us, with women paid less for such a long time and women gaining less access to occupational pension schemes, but Government Members just seem to want to make things worse. As we keep saying, we are not against equalisation of the state pension age; it is the pace of change and the lack of appropriate notice that are the real issues.

[Graham Evans]

Will the hon. Gentleman give way on that point?

[Ian Blackford]

I will give way one more time.

[Graham Evans]

I am most grateful. If Germany can introduce equalisation of the pension age in 2009, why cannot the United Kingdom do the same? We are behind the game.

[Ian Blackford]

I am absolutely dumbstruck! I do not know how many times we have to say it, but we are not against equalisation. We support it. It is the pace of change imposed by the Government that is the problem.

While we are on the subject, the Government might wish to consider the fact that the Polish Parliament met on the 16th of this month and agreed to reverse the increases in pensionable age because they recognised the unfairness. Perhaps we should take a leaf out of the Poles’ book, rather than this one.

[Fiona Mactaggart (Slough) (Lab)]

Will the hon. Gentleman give way?

[Ian Blackford]

I want to make some progress, because I know that many other Members want to speak.

We should remind ourselves what a pension is. It is deferred income. Women, and men, have paid national insurance in the expectation of receiving a state pension. That is the deal, plain and simple. You pay in, and you get your entitlement. You do not expect the Government, without effective notice, to change the rules. What has been done to the WASPI women has undermined fairness and equity. The 2.6 million women affected by the increase in pensionable age have an entitlement to a pension and a right to be treated fairly: no more, no less.

The Government often state that the increase in pensionable age under the 2011 Act means that no women will have to wait longer than 18 months for their pensions. That is disingenuous, as it comes in addition to the changes in the 1995 Act, which are still in the process of being implemented. It is a fact that women’s pensionable age is increasing by six years over a very short period. That is the issue. That is the reality. It is the impact of both Acts. The Government have a duty to be truthful about this matter.

Let me now turn to the Prime Minister’s amendment. So much for her comments about supporting those who were “just about managing”. Many of the WASPI women are not managing, and this ill-conceived, patronising amendment from the Government is frankly contemptible. Although the Chancellor confirmed in last week’s autumn statement that the triple lock would remain for the duration of the current Parliament, he has ordered a review of the cost of the guarantee and whether it is affordable. We in the SNP remain fully committed to the future of the triple lock to ensure dignity in retirement for all our pensioners. Any roll-back by the UK Government will leave pensioners vulnerable.

The Government’s commitment to pensioners needs to be questioned. We already know that, in reality, although the new headline flat-rate state pension will be £159.55 a week, many people will get less if they contracted out of second or additional state pension top-ups over the years. With the Chancellor and others wavering on the future of the triple lock, only the Scottish National party can be trusted to protect the rights of pensioners in Scotland. [Laughter.] Members may laugh, but I am glad to say that pensioners throughout the United Kingdom will be listening, and they will be watching the behaviour on the Government Benches.

The amendment is something that we might expect from a student debating society, but not from a Government who are taking the plight of the WASPI women seriously. What is it going to take for the Government to recognise that they must do something to deal with the unfairness of the sharp increase in pensionable age? Over the last few weeks, 240 petitions relating to the WASPI campaign have been presented to Parliament by Members on both sides of the House, which shows that this issue affects all parts of the UK. Parliament and the petitioners should be given more respect by the Government, and I hope that when the Minister responds to the debate he will withdraw their amendment. The issue is not going to go away: the WASPI woman are angry, and will be lobbying MPs in the weeks and months ahead. The Government must act.

This is not the first time that women have had to campaign to defend their rights. In the House, we frequently pay homage to those in the suffragette movement who campaigned for voting rights for women. There are similarities between the suffragettes and the WASPI women. The suffragettes were known by the acronym WSPU, which stood for the Women’s Social and Political Union, and they were well known for wearing purple, as do the WASPI women. The Government of the day, of course, stood steadfast against the demands of the suffragettes for many years before they were eventually forced into doing the right thing. My message to the present Government is not to be as pig-headed as previous Governments in opposing a campaign which, as I have said—and as was pointed out earlier by the hon. Member for Bolsover (Mr Skinner)—is not going to go away. I say to them. “Show compassion. Show that you can do the right thing.”

[Kirsty Blackman (Aberdeen North) (SNP)]

Does my hon. Friend share my bafflement that in the face of evidence, in the face of campaigning and in the face of the many women who come through the doors of our surgeries to raise this issue, the Government have not yet changed their mind? This is not about equalisation; this is about a campaign against the WASPI women.

[Ian Blackford]

My hon. Friend is quite correct. The Government ought to reflect on all the petitions that have been launched in good faith, including by Conservative Members.

[Lady Hermon (North Down) (Ind)]

The hon. Gentleman will understand that in Northern Ireland this change is having a negative impact on thousands of women. I am one of them, but I will have a pension from this House; thousands of women will not enjoy that privileged status. On 13 July, a new Prime Minister walked into No. 10, giving an opportunity for this Government to set a different tone. The Prime Minister has a golden opportunity to deliver on the hopes and expectations that she revealed on the steps of No. 10.

[Ian Blackford]

The hon. Lady makes a strong point. I appeal to the Government to listen to what is said by Members in all parts of the House, including on the Government Benches. They can do the right thing today and deliver justice for the WASPI women. They have a chance to show that they really do care about the women who have been left behind.

Although it is simply shocking that we are still debating this issue without resolution, should we be surprised? Historically, women have suffered decades of gender inequality, and while the Tories tell us that the changes are about equalisation and fairness, they continue to push women further into hardship by delaying their pensions and ensuring that their austerity cuts continue to fall firmly on their shoulders.

[Dr Alasdair McDonnell (Belfast South) (SDLP)]

Does the hon. Gentleman agree that the WASPI women should be commended for the civil, decent and reasonable way they have campaigned? We have met them all in our constituencies. He just made the point that women had a gender pay gap and a resulting pension gap even before the changes, so an already unfair situation is compounded. Does he agree that the failure to introduce better transitional arrangements exacerbates the existing inequality?

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[Ian Blackford]

I fully agree. I commend the dignity shown by the WASPI women in their campaign. They have been an inspiration to us all.

[Maggie Throup (Erewash) (Con)]

Will the hon. Gentleman give way?

[Ian Blackford]

No. I have to make progress, because many others want to speak. I have been generous in giving way.

We also need to remind the Government that the House has already backed a motion calling on them to take action. It was passed on 7 January this year, and it is worth reflecting on its contents. It called on the Government

“to immediately introduce transitional arrangements for those women negatively affected by that equalisation.”

Why have the Government ignored the will of this House? Does parliamentary democracy mean anything, or can it simply be ignored by a Government who choose to disrespect not only this House but the 2.6 million WASPI women? It is an affront to democracy that despite this House having voted for the Government to take

“action to alleviate the injustice facing women affected by the acceleration of the increase in the state pension age”,

the Tories are intent on resisting the will of the people. It is abundantly clear that we have won the argument. As well as winning the vote unanimously in Parliament for the UK Government to introduce transitional arrangements for the WASPI women, the Tories continue to shrug their shoulders at the will of the House. In various debates on this issue, we have won the argument. The UK Government must realise that, with the support of Members on both sides of the House, we will not be abandoning the WASPI women as they have done. We and the constituents we represent should be given more respect and consideration by the UK Government.

[David Rutley (Macclesfield) (Con)]

On the point of fairness, will the hon. Gentleman give way?

[Ian Blackford]

Fairness! [Laughter.] For the last time, and because of his sheer cheek, I give way to the hon. Gentleman.

[David Rutley]

Not once has the hon. Gentleman told the House that he will pay the £38 billion price tag. That will increase national debt, and future generations will have to pay for it by having a much higher pensionable age. How does he answer that question about fairness?

[Ian Blackford]

That was pathetic.

There will come a time when not only the SNP but the Government Back Benchers who have pledged to support the WASPI women and the general public will question the role of this place, if it is not to listen and respect the will of the people. With internal dissent growing in the Tory party over cuts to employment and support allowance and the reduction in the work allowance, the cracks are beginning to appear. Maybe now is the time for them to change tactics and start listening to the Conservatives they claim to represent. I understand the motivation of those Members who have put their names to amendments (a) and (b), but I ask them to support the SNP today.

The SNP commissioned research to challenge the UK Government’s figures. A number of options are available to the Government, but we believe option two can give immediate relief to those women who are next to face delay in this Parliament. The Government must act now.

[Several hon. Members rose—]

[Ian Blackford]

With your forbearance, Mr Speaker, I am aware that I have been on my feet for quite some time and I want to move on to my concluding remarks. I have been generous in allowing others to come in, but I will not be taking any further interventions so that I can finish and allow others to speak.

Our report is a stepping stone. It should be adopted to help to end this injustice. We hope the UK Government welcome the report and act now to end this inequality. The SNP Westminster parliamentary group’s report detailed modelling by Landman Economics of the impact of different options for compensating women affected by the 2011 Act. One option was a return to the timetable in the 1995 Act, whereby women’s state pension age would rise from 63 in March 2016, to 65 in April 2020. The report estimates that reverting back to the 1995 Act for women would cost £7.9 billion between 2016-17 and 2020-21.

The Government estimate that the accelerated state pension age in the Pensions Act 2011 saved about £30 billion from both women and men from 2016-17 to 2025-26. However, that is simply not the case. The £8 billion cost is affordable given the surplus in the national insurance fund, which rightly should be used to end this injustice. The fund is in surplus and, according to the Government’s own Actuary’s Dept, is projected to be at a £30 billion surplus at the end of 2017-18. It is time the Government paid out. After all, the WASPI women paid in and helped to create this surplus. They now need to be given their due.

The Minister said that it is simply too expensive and that public spending is complicated. We will not be fobbed off. The report was carried out by a credible and sound model that has been used previously by independent economists. Again, the matter returns to priorities—too expensive by comparison with what other expenses? The Tories have a choice here: this is not a necessity.

While we are trying to get the Government to act, others elsewhere are doing just that. Measures were brought forward by the Polish Government on 16 November to reverse the increase in pensionable age from the previous planned state pensionable age of 67 to 60 for women and 65 for men as of October 2017. The Polish Prime Minister claimed that there were enough state funds from more efficient tax collection for earlier pensions. Well, well! Of course, the parallel here is that we know the national insurance fund is in surplus. We can afford to put in place mitigation. If Poland can do it, what about a rich country like the UK? It is all about choices.

We published in our report the scale of increase in pensionable age in each European country. Only two countries are seeing a rapid acceleration of pensionable age for women in line with the UK: Italy and Greece. Is anyone on the Government Benches prepared to defend the increase in women’s pensionable age of three months per month? We have given the Government an option and, unlike their Trident nuclear weapons commitment, it is costed. I say to the Government that we are not going away. More importantly, the WASPI women are not going away.

In conclusion, today is Scotland’s national day. With deference to Rabbie Burns, if he will forgive me, I would like to adapt one of his better known pieces of work:

“Women, wha hae wi’ WASPI bled,

Women, wham WASPI has af times led;

Welcome to your gory bed,

Or to victory!

Now’s the day, and now’s the hour;

See the front o’ battle lour;

See approach proud Theresa’s power—

Chains and slavery!

Wha will be a traitor knave?

Wha can fill a coward’s grave!

Wha sae base as be a slave?

Let her turn and flee!

Wha for Pensions rightly earned

Freedom’s sword will strongly draw,

WASPIs stand, or WASPIs fa’,

Let them follow me!

By oppression’s woes and pains!

By your daughters in servile chains!

We will drain our dearest veins,

But they shall be free!

Lay the proud usurpers low!

Tyrants fall in every foe!

Liberty’s in every blow!—

Let us do or die!”

Justice for the WASPI women!

The Tory Government have ducked their responsibility for the WASPI women for too long. It is time to face up to the reality. Pensions are not a privilege; they are a contract and the UK Government have broken it.

[Several hon. Members rose—]

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[Damian Green]

It is obviously impossible to talk about individual cases without talking to the individuals. All I can say is that the DWP tried hard after the 2011 Act and wrote more than 5 million letters to people’s most recent addresses.

[Ian Blackford]

rose—

[Damian Green]

I feel that the hon. Gentleman has had his fair share of the time, having used more than 35 minutes of a three-hour debate, and I want to turn to the specific option that he proposed. He mentioned the Landman Economics report that modelled the impact of several options. The SNP’s preferred option would roll back the 2011 Act entirely, returning to the timetable in the 1995 Act. He said that that option would cost £8 billion, but I disagree. Our analysis suggests that the cost has to go beyond 2020-21 and must include the effects on national insurance payments and tax collection, which his economic model entirely ignores, and that it would cost over £30 billion.

Even if we accept the hon. Gentleman’s figures, his other suggestion is that the costs could be met from the surplus in the national insurance fund that he conveniently discovered. In fact, there is no surplus in the fund because it is all used to pay contributory benefits. If we take from the national insurance fund £8 billion, £30 billion or whatever number one cares to mention, we take it from people who receive benefits. The surplus of £16 billion that he identified is two months’ expenditure—an advisory level recommended by the Government Actuary as a prudent working balance. The money has been put there by a Treasury grant to maintain the fund at the recommended long-term balance. The Government Actuary does not forecast a long-term surplus, so this convenient pot of money for the SNP does not actually exist.

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[Ian Blackford]

Will the Secretary of State give way?

[Damian Green]

All right, I will finish this point in a minute.

[Ian Blackford]

I am grateful. I actually talked about a cost of £8 billion for this Parliament, which is affordable given the current surplus in the national insurance fund. Please do not twist what I said.

[Damian Green]

I did not twist what the hon. Gentleman said at all. Is he prepared to take £8 billion from people who receive contributory benefits? That is the only way that he could pay for it.

Returning to the hon. Gentleman’s characterisation of the national insurance fund, he gave the impression that it involved an individual contract. As he knows perfectly well, the national insurance scheme operates on a pay-as-you-go basis, meaning that today’s contributors are paying for today’s social security entitlements and pensions. Those who previously paid contributions were paying for the pensioners of that time. In other words, contributors do not accumulate an individual pension fund. It is not like any individual’s pension fund of moneys paid, which is personal to them. Instead, payment of contributions allows them, or their spouses, to access a range of social security entitlements. It is not an individual contract or fund. I gently suggest that the hon. Gentleman knows that perfectly well.

Moving on to the issues that affect the WASPI women, I absolutely accept that getting into work will be difficult for some older women, so I want to say what we are doing to help them and also what we are doing for those who simply cannot work.

--- Later in debate ---

[Mr Vara]

I will not give way, because I want to leave other hon. Members as much time as possible in which to speak.

We must also mention other countries. Nine EU countries, including Germany, Denmark and the Netherlands, introduced equalisation as far back as 2009. I conclude by simply saying one thing: we have had many debates on this issue and the Government have repeatedly made their position clear, which is that they do not intend to revisit this issue. The issue was not in the Labour or the SNP manifesto, and by continuing to debate it, Labour and SNP Members are doing a disservice to the good women affected by giving them false hope. They should understand that doing so is opportunism pure and simple and political irresponsibility of the highest order. They should not give these good women false hope, and they should recognise that the Government will not give way.

[Ian Blackford]

On a point of order, Mr Deputy Speaker. We are being traduced by the hon. Gentleman. For clarification, this matter was in our manifesto, and perhaps the hon. Gentleman will correct what he has said.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

I think we all know that that is not a point of order, but, not to worry, it has been put on the record.

--- Later in debate ---

[Alex Cunningham]

No, I will not.

Assuming that the SNP Scottish Government do have the powers to help the WASPI women, Scottish Ministers should overcome their shyness, make a real decision and agree to step in and aid the 250,000 women in Scotland. Not to do so will be seen as a missed opportunity.

[Ian Blackford]

rose—

[Alex Cunningham]

The hon. Gentleman, who opened this debate, spoke for 35 minutes; I have 10 minutes.

If the Scottish National party in government in Scotland did that, it would further highlight the injustice faced by other WASPI women across the rest of the UK who would still get nothing. That is why we must have a UK-wide solution to the problem. We do not want one that sees British women in different parts of the United Kingdom treated differently on social security because of where they live.

We have said that the proposals are not fair, have not been implemented properly and are damaging the most vulnerable, but the Government have made it clear that they do not care about the plight of women up and down this country. Those women are frightened of these proposals because they do not know how they will cope. The Secretary of State spoke about the older people’s champion. We could have a champion in each and every department across the country, providing a special helpline for the women affected.

Under our proposals, we are calling on the Government to extend pension credit to those who would have been eligible under the 1995 timetable, so that women affected by the chaotic mismanagement of equalisation will be offered some support until they retire. That will make hundreds of thousands of WASPI women eligible for up to £156 a week. We will not stop there. We are developing further proposals to support as many of the WASPI women as possible. Importantly, they will be financially credible and will be based on sound evidence and supported by the WASPI women themselves.

It is disappointing that the SNP chooses to cost only the option in the Landman report—the one mentioned in the motion—to the end of this Parliament. This accounting trick has led it to promise the WASPI women that it has a long-term solution, but that is not the case. The measure will cost £8 billion until 2020, but more than £30 billion if it is to help affected women up to 2026. Sadly, this has confused the debate, when clarity was needed. As I have mentioned, if the SNP actually wanted to support the WASPI women rather than play games, it would have acted already in Scotland.

The Government could have done something in the autumn statement to support these women and then used the Pension Schemes Bill currently in the other place to put the changes into law. They still have time to do so in the new year.

I have had numerous emails, phone calls and meetings with women all over the country who are begging and pleading for Parliament to act. They are at their wits end. If they are not already suffering the full impact of the changes, they are dreading them, as they know this Government will require them to survive on very little—including those who are single or incapable of working.

My party believes in standing up for the most vulnerable, and that is what we are doing today. We will to do that tomorrow, and we will continue to support the WASPI women in this fight. For that reason, we will support the SNP motion today, but we hope to have the real cost of its proposed solution up to 2026 properly acknowledged. Only Labour is taking a detailed look at the evidence and trying to find the best way forward to help dig both the Scottish and UK Governments out of the hole they are now in. Let us make it clear once again: it is not a Scottish, English, Irish or Welsh solution that we need, but a UK-wide solution, and this Government must act.

--- Later in debate ---

[Richard Harrington]

I am sorry, but, for the moment, there is not time to take interventions.

Governments have to take hard decisions. The can that was kicked down the road for many years by the Labour party had to be dealt with by the coalition Government. I would just like to refer to some of the fallacies mentioned by Opposition Members. The hon. Member for Ross, Skye and Lochaber, in moving the motion, talked about the 1995 Act as if there was absolutely no communication from the Government—as if the DWP and everybody else suddenly forgot to talk about it. Well, that is not true. There were leaflets produced. There was an extensive advertising campaign. There were articles in women’s papers. In addition, millions of people, who decided they were going to sort out their pension, applied, quite properly, to the DWP; in fact, more than 14 million people applied and received full details of what their pensions were. I mention that because it would appear that there was absolutely no communication whatever. After the 2011 Act, that was a direct mail campaign, where individual letters—

[Ian Blackford]

rose—

[Andy Burnham]

rose—

[Richard Harrington]

I will not give way. I have a very short time left.

There was actually very good communication. However, I would like to mention the various contributions we have had. My hon. Friend the Member for Mid Bedfordshire (Nadine Dorries), who was among many speakers from the Government side, said that women, including herself, were not informed following the 2011 Act. In fact, as I have just shown, millions of letters were sent between January 2012 and November 2013. She said it is difficult for women over the age of 60 to find employment, and she said nobody would employ her. Actually, more than 4 million women in her age group are in employment—more than ever.

From the Opposition, we have had the argument, which I have had to deal with on many occasions, about the state pension being a contract. It is not a view but a question of fact that the state pension is a benefit, not a contract. As my hon. Friend the Member for North West Cambridgeshire (Mr Vara) said, promises are cheap. The Government have to actually deal with facts.

I have much sympathy for Members who spoke of constituents who are finding it difficult to access the benefits system. [Interruption.] Someone has shouted from a sedentary position, “What are you going to do about it?” As hon. Members will be aware, and as the Secretary of State mentioned, we have a system of helping through the benefits system people who may need looking at. We have older claimants’ champions, and we are getting more of them. We will find a way to help people to find their way into the benefits system. For any constituents who are finding this difficult, if the Department can have their name, address and national insurance number—I have asked for this on many occasions—I will be very happy to personally see what the position is and get them the help they need to get through the benefits system. We hear a lot of talk from hon. Members about their constituents, but the actual factual details I get are few and far between.

Let me move on to the famous economic report from the Scots Nats. I commend my hon. Friend the Member for Gloucester (Richard Graham), who described it as irresponsible and inaccurate. I really could not have put it better myself, because it is, as my hon. Friend the Member for North West Cambridgeshire said, raising false hopes by saying to our constituents that this is a small problem that can quite easily be dealt with. I remind hon. Members that even the SNP costs this at £8 billion, and the Department, as I have written to the hon. Member for Ross, Skye and Lochaber, has assessed it at nearer £30 billion. We have looked at every alternative. We have looked at more than 25 options that have been mentioned to us about the WASPIs, and there simply is not a viable option, either because of cost, complexity or practicality.

The luxury of opposition is promising everybody money without having to consider how to pay for it. I view this as very irresponsible.

[Ian Blackford]

I must tell the House that the figures in this report, which has been produced by Landman Economics, are based on the Institute for Public Policy Research model, which has been tried and tested. It really ill behoves the House to traduce the economists who have produced these figures based on a Treasury model. When we had the debate two weeks ago, the Minister said that the cost was £14 billion. How come we have gone from £14 billion to £30 billion? It is the Government’s figures that do not make any sense.

[Richard Harrington]

I apologise to the hon. Gentleman—I could not hear the end of what he said because of the noise. I am not disputing that this was produced by proper economists—I accept that fact—but it is about what timescale they look at, in this case going to 2021, and how they brief. But okay, fair enough: even by the SNP’s calculations the figure is £7.9 billion, which should apparently come from millionaires or from Trident. Government is not like that; these are completely separate issues. This country has a proud record on state pensions. This Government, and the predecessor coalition before it, did not have the luxury, partly because of the economic mess Labour left us in, of kicking the can down the road and ignoring these very, very serious issues.

The benefits system is available to people, and if they are not having the access to it they should, we will help them. I give an undertaking to look at every way that the benefits system can be used to help people who are in difficulty. Contrary to what some hon. Members have said, my door is open to people so I can speak to them. I hope I have shown that. I took this job to help pensioners, not to not help pensioners. It has been irresponsible to imply—