State Pension: Women born in the 1950s

Jim Shannon Excerpts

Thursday 22nd November 2018 Westminster Hall

[Patricia Gibson]

I will just finish the quotation from the rapporteur. He continued:

“The impact of the changes to pensionable age is such as to severely penalize those who happen to be on the cusp of retirement and who had well-founded expectations of entering the next phase of their lives, rather than being plunged back into a workforce for which many of them were ill-prepared and to which they could not reasonably have been expected to adjust with no notice.”

I would be keen to hear the Minister’s response to the rapporteur’s words. If he wishes to intervene to rebut them, I would be delighted to give way, but in the absence of his seeking to intervene, I will take an intervention from the hon. Member for Coventry South (Mr Cunningham).

[Jim Shannon (Strangford) (DUP)]

The next best thing!

[Mr Cunningham]

I do not know about that. I congratulate the hon. Lady on securing this timely debate. We have had many such debates, but the Government do not seem to get the message. From the start of the recession until now, women have carried the burden of the recession. In tax adjustments, the Government saved something like £14 billion at the expense of women. The amount the Government are saving through not doing the right thing by these women probably runs into billions. A fraction of those billions could take care of the problem.

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Member for North Ayrshire and Arran (Patricia Gibson) on securing this debate. She has been a stalwart in speaking out for the WASPI women. I was very happy to be a co-signatory to her request to the Backbench Business Committee for this debate, and I am happy to add my support.

I know that I speak for so many others when I say that my constituents in Strangford were gutted to find that no change has been made to the nefarious decision to deny women their hard-earned pension. An email I received said that there was a sense of

“despair amongst our WASPI women with increasingly negative effects on mental and physical health and catastrophic financial situations.”

I cannot underline enough those women’s mental and physical health and their catastrophic financial situations. The people I have spoken to are greatly affected by those three things.

It is little wonder that those women feel like that when it appears that the political route has led nowhere. The Bill supported by the all-party group on state pension inequality for women has been kicked into the long grass. For that reason, the WASPI women have, alongside their political campaign, been progressing on the legal front. They believe that proving that the DWP failed in its duty and committed maladministration is the most cost-effective and quickest way for the 3.8 million women affected by the changes to the state pension age in the Pensions Acts of 1995, 2007 and 2011 to achieve justice and recompense.

I am aware that the Parliamentary and Health Service Ombudsman has begun his preliminary inquiry. He is starting with the 1995 Act and is looking at whether the DWP failed in its duty to inform women of the significant change to state pension age, which had been 60 for women since 1948. If he finds that the DWP failed in its duty and committed maladministration, he should make recommendations about what the Government should do to make amends. That would be an important way of addressing these issues. Those recommendations should perhaps include recompense for the losses suffered by all women adversely affected by the changes.

It is time that we did the right thing for those women. In my constituency alone, 5,800 women have been adversely affected. I am not saying that every one of them has come and spoken to me, but a great proportion have. They worked their fingers raw and had their end goal in sight, but the certainty of a pension was removed from them with very little notice. They did not have the ability to change the course of their financial future. They were told the facts of the case and were left to deal with it. The women who have spoken to me include not only civil servants who planned their financial future and are now cast into uncertainty, in doubt about how their well-deserved retirement will pan out, but women who have literally scrubbed on their hands and knees. They are saying, “Jim, I don’t know how I can physically do this anymore.”

[Sandy Martin]

The point is not just that those people worked hard all their lives and then suddenly found that their pension age had been increased, but that they were not given the time to plan their lives in advance. In many cases, they finished work and found that they would not get their pension for years afterwards.

[Jim Shannon]

The hon. Gentleman is absolutely right. They thought they had planned for their pension age, but suddenly found that it was grasped away from them at the last moment. The impact on women throughout Northern Ireland is incredible. I have said this before, and I will keep on saying it: we need to do the right thing. The hon. Member for North Ayrshire and Arran said that we must do the right thing. I am here to do the right thing and make sure it happens.

This equalisation was initially brought about in 1995, when an EU directive prompted the Government to equalise retirement age for men and women—then 65 and 60 respectively. The Government chose to level it at 65, and it was decided to increase women’s SPA in stages between 2010 and 2020. Women born in 1950-51 would retire at 61, those born in 1952-53 would retire at 62 and so on until 65 was reached for all post-1955 women in 2020.

I am unsure how we got to the stage at which we are asking women to work into their 70s and beyond. People are working longer, but they will not live longer if we make them work longer. I believe that enough is enough. I am not alone in that view. I read an article—the hon. Member for North Ayrshire and Arran referred to it—that said:

“A United Nations independent expert has affirmed the stance taken by campaign groups including the Women Against State Pension Inequality…that certain women have been affected disproportionately by recent pension age changes.”

We cannot ignore the United Nations—we often refer to it.

“Philip Alston’s report Statement on Visit to the United Kingdom on extreme poverty and human rights, out on Friday (16 November), showed the number of pensioners living in poverty in the UK had risen by 300,000 to 16 per cent in the four years to 2016/17. This was despite measures such as the triple lock guarantee. But he found a group of women born in the 1950s had been particularly impacted a ‘poorly phased in’ change in the state pension age.

Mr Alston said: ‘As was made clear to me in a number of submissions and through powerful personal testimony, a group of women born in the 1950s have been particularly impacted by an abrupt and poorly phased in change in the state pension age from 60 to 66.

The impact of the changes to pensionable age is such as to severely penalise those who happen to be on the cusp of retirement and who had well-founded expectations of entering the next phase of their lives”—

as the hon. Member for Ipswich (Sandy Martin) said—

“rather than being plunged back into a workforce for which many of them were ill-prepared and to which they could not reasonably have been expected to adjust with no notice.’”

[Ross Thomson]

I want to share the experience of Ann from my constituency, whom I met on Friday. Three months prior to her 60th birthday, she had to leave work due to a health issue. She lived alone and had no income, and therefore had nothing to resort to bar her life savings. She is now living on a very small work pension, but had to add to that significantly from her savings. Over the years, she had done exactly what the hon. Gentleman spoke about. She had planned how to spend her savings, but she now has to use them for ordinary living expenses instead. There is an inherent unfairness in that.

[Jim Shannon]

The hon. Gentleman is absolutely right. He has told us the experience of his constituent, as I have done—many of mine tell me the same thing. They are not physically able to continue to work and have planned their future in what they thought was the right way, only to find that it has been—if I may use this word—stolen from them by this system. I could not do anything other than come to the debate in Westminster Hall to speak on behalf of the 5,800 constituents of mine who have indicated their distress and need for the Government to address the issue.

I understand that others want to speak and I want to try and keep to the timescale that you indicated, Mr Bone, so I will conclude. It is clear that others can see what the Government cannot. We must address the issue, and address it now. I hope the Minister will outline how he intends to address it rather than—with respect—wash his hands of it. It is time for action, not for words. Enough is enough.