State Pension Age: Women

Debate between James Cartlidge and Ian Blackford

Wednesday 29th November 2017 Commons Chamber

[Ian Blackford]

I know that many Members want to speak, so I will make some progress and let people in later.

This is about women who have paid national insurance in anticipation of receiving a pension and have been hit with the bombshell that their pension was being deferred—in some cases by up to six years—with only 15 months’ written notice. Members should dwell on that. They were looking forward to retirement, but they received a letter telling them that they were going to get as little as 15 months’ notice of an increase in their pension age. Can anybody on the Government Benches defend that? Will anybody stand up and tell the House and the public that giving someone 15 months’ written notice of an increase in their pension age is acceptable? Is anyone prepared to do that? If so, I will happily give way.

[James Cartlidge (South Suffolk) (Con)]

rose—

--- Later in debate ---

[James Cartlidge]

We recognise people’s concerns about the notice, but to rectify the situation requires public funds. In a previous debate, the right hon. Gentleman said that his party’s position was to pay for that from the surplus in the national insurance fund. Is that still his party’s policy?

[Ian Blackford]

Well, there we are. Given the opportunity to defend the indefensible, we again get spin. Let me make things absolutely crystal clear. The national insurance fund is sitting at a surplus in the region of £30 billion, and that surplus has been generated by the women who have paid national insurance. All that we have asked for is that the women be given what they are entitled to receive. A pension should be seen as a right, but the Government have changed the terms and conditions of that right without consulting those who have paid in for a pension. As many of the campaigners have said, “We paid in, you pay out.”

This campaign is at the heart of SNP policy. We have long fought for the Government to rectify the shambles and give the WASPI women the pensions they rightfully deserve. I speak on behalf of SNP Members when I say that we will never rest until justice is delivered for the women affected. The Government have failed time and time again to address the injustices of a lack of notice for the acceleration of the state pension age. There is an opportunity today for the Government to admit that effective notice was not given of an increase in pensionable age. The process of increasing pensionable age must be slowed down.

--- Later in debate ---

[Ian Blackford]

I am grateful to the hon. Gentleman. I hoped he would be backing me, and he has been resolute on this issue over a long period of time. He is absolutely right; we can find money on the magic money tree for Northern Ireland and, as I said in the Budget debate only last week, we found £70 billion for quantitative easing last year. A £70 billion cheque was written for the Bank of England to put into the financial markets, so do not tell us that the Government cannot find the money. Of course, the answer to the question is that the money is there because the national insurance fund is sitting on a surplus.

[James Cartlidge]

Will the right hon. Gentleman give way?

[Ian Blackford]

I must make some progress. I will not take interventions for a while.

The moment has never been so opportune for Members on both sides of the House to come together to do the right thing and to call for this long-standing error to be corrected. Conservative Members made a pledge to the WASPI women as recently as June 2017. Scottish Tory Members—I will not name them, but they know who they are—signed the WASPI pledge before the general election and claimed to be prepared to act against party orders on the issue. There has been a deafening silence from them on this matter since the election, and the heckling has gone.

The House might be interested to know that, in the constituencies represented by Scottish Conservative Members of Parliament, a total of 84,000 women are affected by this Government’s legislative changes. I ask this question of the Scottish Tories, in a friendly spirit, particularly to those who supported the WASPI women during the campaign: will they have the courage to join us in the Lobby this afternoon, or will they turn their backs on the 84,000 WASPI women in their own constituencies?

I flag up to them page 62 of the Scottish Conservative manifesto, which states:

“We will also ensure that the state pension age reflects increases in life expectancy, while protecting each generation fairly.”

So, today, Scots Tories, do the right thing.

--- Later in debate ---

[Ian Blackford]

Again, I am grateful for that intervention, and the hon. Gentleman is correct in what he says. This is yet another clear example of why there is absolutely no excuse for not collectively taking action today. We have a choice: we can recognise the injustices that the women have faced or we can sit on our hands and do nothing. This is about morality. It is about doing the right thing. The Minister can look up to the skies, but it is not going to remove the problem for him. I do not want to wait until the end of the debate and then get another 10 minutes of ignoring the reality of what is going on. We have had that for too long and it has to stop—it has to stop today.

The intent was there in the 1993 White Paper, but it was 2009 before any formal letters went out. Then we have the issue of phasing this in gradually. What we are dealing with is an increase in a woman’s pensionable age by three months for each calendar month that passes. It is simply scandalous that a woman’s pensionable age is increasing so rapidly. It is indefensible and it is not within the spirit outlined in the Government’s White Paper in 1993.

In October 2002, while giving evidence to a Select Committee, the DWP suggested that the role of the state was

“to provide clear and accurate information about what pensions will provide so that people will understand how much they can expect at retirement before it’s too late to do something about it.”

How does “before it’s too late to do something about it” equate with 15 months’ notice? How can the Minister, and how can anyone who is not going to support our motion today, support that lack of notice? It has gone quiet now, has it not?

[James Cartlidge]

The right hon. Gentleman has to find a way to pay for this and he did say that he would still use the national insurance fund. Ruth Kelly, the then Financial Secretary to the Treasury, said the following in 2003:

“The national insurance fund provides security for those contributory benefits. It is ring-fenced and cannot be used for other Government expenditure.”—[Official Report, 21 October 2003; Vol. 411, c. 231WH.]

[Ian Blackford]

The hon. Gentleman is going to have to do better. Of course this is ring-fenced—it is for pensions. Pay it out! That is what the Government are being asked to do. As I was saying, no formal communication took place until 2009 and the task was not completed until 2012. The DWP has to take responsibility for this failure to communicate and, crucially, for the lack of time that women have had to prepare for an increase in their state pension age. Rather than recognising that women deserved to be communicated with directly, the DWP issued leaflets headlined “Equality in state pension age”. Can anybody in this Chamber remember them? No, I do not recall seeing them either. That is no surprise, as DWP-commissioned research in 2004 highlighted that only 2% of respondents mentioned that they had been notified of changes to their pension age via a leaflet. That is the responsibility that the Government took to inform people. Frankly, it is an insult that the Government at the time thought that changes that affect a woman’s retirement age could be delivered with a leaflet. That was an abdication of responsibility and we have to take responsibility for that. We should all receive an annual statement from the DWP on our expected entitlement, just as we do from private pension providers.

--- Later in debate ---

[James Cartlidge]

I think the hon. Lady is missing the point. I am not saying that to my WASPI campaigners. I am not full of righteous anger, so high on my high horse that my ears pop, like the right hon. Member for Ross, Skye and Lochaber (Ian Blackford). If we are to go out on a limb to that degree, we must have a credible policy. We must be able to say, “This is how we are going to pay for it.”

[Ian Blackford]

Will the hon. Gentleman give way?

[James Cartlidge]

I do not think that I should give way again, but I will, because the hon. Gentleman was very generous to me. However, others wish to speak, so I shall wind up my speech immediately afterwards.

[Ian Blackford]

We have tabled a very straightforward motion that asks the Government to introduce mitigation measures. The hon. Gentleman has asked for costed proposals, but we gave him one last year in the Landman report, on deferring the increase in women’s pensionable age. It would have cost £8 billion. That is one option. We have done our work; the Government have not done theirs.

Debate on the Address

Debate between James Cartlidge and Ian Blackford

Wednesday 21st June 2017 Commons Chamber

[Ian Blackford]

I thank my friend for that intervention, and I agree with him. There is unfinished business, certainly for me, having been the pensions spokesman for the SNP in the last Parliament. We will not leave the WASPI women without a voice. It is utterly disgraceful that some of the worst-affected women were given 14 months’ written notice of an increase in their pensionable age. I have said before that, in this ridiculous situation, a woman born in February 1953 would have retired in January 2016 just shy of her 63rd birthday, but a woman born in February 1964 will not retire until July 2019, when she will be 65 and a half.

Quite simply, a two-and-a-half-year increase in a woman’s pensionable age over a one-year period is unacceptable. Cridland identified in his review of the state pension age that we should not be looking at an increase in pensionable age of more than one year in every 10 years. As I have often pointed out to the Government, there is a very easy solution, which is to reverse the Pensions Act 2011. The cost of doing so would be £8 billion, which is easily affordable given that there is a surplus of £30 billion in the national insurance fund.

[James Cartlidge (South Suffolk) (Con)]

The hon. Gentleman knows full well that the policy he has set out was shot to pieces when the permanent secretary of the Department for Work and Pensions confirmed that it is not even physically possible to use the surplus; and that in many years, the fund is in deficit. Does the hon. Gentleman accept that?

[Ian Blackford]

I think the WASPI women are due an apology from the hon. Gentleman, because we cannot get away from the fact that the Government Actuary’s Department has indicated that the surplus this year is £30 billion. For goodness’ sake, let us use the surplus in that fund to introduce mitigation for the WASPI women. It is the right thing to do.

I assure the Prime Minister that this issue will not go away. Let me commend Members from across the House, including Conservative Members, who want action to be taken. We cannot defend the fact that women were given only 14 months’ notice, in some cases. That was a failure of communication, and the rise in pensionable age was far too swift. We must address the issue in this Parliament. I confirm that the SNP will not lose sight of the issue; we will stand foursquare behind the WASPI women in the months to come.