Transitional State Pension Arrangements for Women

John Glen Excerpts

Wednesday 24th February 2016 Commons Chamber

[Owen Smith]

With respect, I did not have an opportunity because I was not here at the time. The hon. Gentleman is right that successive Governments have lessons to learn from this sorry affair, but the truth, as I intend to spell out, is that a change was first mooted in 1991, and the then Tory Government made no substantive efforts between 1991 and 1997, when they left office, to offer people a proper notice. Thereafter, the Labour Government did attempt to do that, and I will enumerate exactly the ways we tried to make amends. However, the problem was compounded by the coalition Government’s actions in 2011. If anybody has lessons to learn, it is the Conservative party, which has the greatest responsibility for these changes, and which now has a duty to make amends.

[John Glen (Salisbury) (Con)]

Will the hon. Gentleman give way?

[Owen Smith]

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

These things started back in 1991. That was when the Tory Government first consulted on their intention to shift the state pension age for women to 65 from 60, where it had been since the 1940s. Then, in the 1993 Budget, the Chancellor formally stated his intention to make this move, and he legislated for it through 1994 and 1995. The Pensions Act 1995 stipulated that the pension age would rise by five years during the decade from 2010 to 2020. That meant that women born between April 1950 and December 1959 would have to wait between one month and five years more before they could draw their pensions.

One would have thought that such a massive change—the biggest change to women’s pensions in half a century—would have been communicated with great care and, in truth, fanfare, but it was not. Some of the women concerned were as young as 39 at the time, so it is unlikely that they were looking carefully at the financial papers or paying much attention to the Government’s scant efforts to tell them about the changes.

[John Glen]

Does the hon. Gentleman accept that, in 2004, the Work and Pensions Committee found that three quarters of women between the ages of 45 and 54 at the time were aware of the changes in the 1995 Act? I accept that there were mistakes by parties on both sides of the House in terms of communication, but three quarters of women knew 12 years ago about the changes.

[Owen Smith]

I am pleased to swap stories about what people knew at the time, because the truth is that the question asked in that 2004 survey by the then Labour Government, who were concerned that the previous Tory Government had not made proper provision for women, was, unfortunately, not as straightforward as it should have been. Other surveys—five or six—from academics and others in the pensions world found that about 70% to 80% of the women involved did not know that the changes were taking place. It is no surprise they did not know, because the Conservative Government at the time spent very little money advertising the change. There were a few adverts in the newspapers, and letters were available to individuals if they requested them, but many did not.

--- Later in debate ---

[Ian Blackford]

I never realised the Tories were so hard of hearing. I thought I made that quite clear in my earlier remarks, but I will do it again. We are asking for the Government to make clear what they will offer in mitigation for pensioners. I gave the example of the review of pension tax relief. If they can find the money for £176 billion for weapons of mass destruction, they can find the money to do the right thing for pensioners.

[John Glen]

I recognise the passion the hon. Gentleman is bringing to the debate, but I am very concerned that the WASPI campaigners will be misled and be unable to understand clearly what the SNP will commit to if it is to bring forward the amelioration it says is so necessary. If he and his party want to be taken seriously, it is incumbent upon them to have a clear, costed proposal to bring to the House today.

[Ian Blackford]

This is remarkable. The difference between our Government in Scotland and the Tory Government in London is that we have a Government who are popular and responsible. There is a very easy answer to this: give us the powers over pensions. Give us our independence and we will do the right thing for our people and rectify the wrong that has been done by the Conservative Government.

--- Later in debate ---

[John Glen (Salisbury) (Con)]

It is a pleasure to contribute to the debate. I rise to represent the views of Linda Anderson and others from the WASPI campaign group in Salisbury who came to see me just last week. It was clear from their representations that they feel a grave sense of injustice. They have had different experiences in what they have received over the years and in their understanding of the different entitlements they should have had, but I too have been disappointed by the lack of clarity in the alternatives that have been presented in this debate. We had a powerful speech by the SNP Front-Bench spokesman, but we did not have clarity or costings on the amelioration that his party proposes. As my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard) said, the Opposition spokesman offered a menu of options, but we did not have any price tags and we did not have any choices.

I want to set out what I would do and say how much it would cost, because it is important that we have some integrity in addressing the campaigners who have come to see all of us. There has been far too much emotive talk from people trying to get alongside the WASPI campaigners by saying, “It is my party that will do something about this”, and making grave accusations about a Government who have made significant changes to raise pensioners’ standard of living and to put in place mechanisms to ensure that changes in life expectancy are reflected in the provision that the Government make for senior citizens.

It is clear that the pathway to equalisation was set a long time ago, and that there was some communication after the legislation was passed in 1995, but I want to go back to the Work and Pensions Committee report in 2004. There is no ambiguity in what that report said about the Omnibus survey of women in 2004 aged 45 to 54. That survey found that 73%—nearly three quarters—of those women were aware of the changes. That was 12 years ago. I say that not to deflect from the sense of injustice of the WASPI campaigners but to suggest that there has been a range of experiences and different levels of awareness of the changes. It is therefore difficult to get absolute clarity on who knew what when.

However, there does seem to be a real injustice for that group of people, who are now very near their pensionable age, or what they thought would be their pensionable age, which has now been extended. Their lifestyle will be compromised. Their partners or husbands are often already retired, and there will be grave implications for their quality of life. So what I propose is that the group of pensioners in that early-50s cohort are given the option to take their pension earlier. Their pension would be reduced, but it would be a relatively small amount for two or three years, and it should be cost-neutral to the Government even taking into account the cost of the administrative changes involved. That is a reasonable approach, because it says, “There’s a good chance that three quarters of you will have heard about this, but if you didn’t, this option exists.” I urge the Front-Bench team to consider that and come back at the end of the debate with its response.