Pension Equality for Women

Debate between James Cartlidge and Christine Jardine

Thursday 14th December 2017 Commons Chamber

[James Cartlidge]

That is not a function of the state pension system. I will resist the bait to which the hon. Lady tries to get me to rise.

It is important that we remember the costs involved. The DWP spends £264 billion a year, of which the largest part is for the state pension. At £111 billion, it is by far the biggest single piece of public expenditure. That sum gives out a state pension of on average just under £160 a week—not exactly a king’s ransom. Of course pensioner poverty would be far higher in the current age were it not for the fact that many of this generation of pensioners are fortunate enough to have occupational pensions—and good luck to them. My parents are in that generation, many of whom own property. Savills estimates that the housing equity of people over 65 is about £1.5 trillion, so that generation has been cushioned to a certain degree. It has also been cushioned by the Government’s actions to protect pensioner benefits and introduce the triple lock, all of which have protected state pension expenditure from the necessary savings made in other Departments.

[Christine Jardine]

Does the hon. Gentleman not agree that, regardless of the figure that he quoted, the people who are paying the price for this are women born in the 1950s?

[James Cartlidge]

Actually my point was going to be that everyone will end up paying the price. Of course this debate is about a specific cohort that has been hit quite directly and over a specific period, and there is also the whole issue of notification. However, although young people going into the workforce know about the change in the retirement age and have had notification, that does not mean they will be able to save adequately for a pension. It also does not mean that they will be able to afford one, or to get a foot on the housing ladder, and they probably will not have an occupational pension. We cannot look at this issue in isolation; we need to look at the whole system.