Women’s State Pension Age: Ombudsman Report
Debate between John McDonnell and Paul Maynard(6 months, 1 week ago)
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Paul Maynard
Sorry, I won’t.
During the course of the ombudsman’s investigation, state pension age changes were considered by the courts. In 2019 and 2020, the High Court and Court of Appeal respectively found no fault with the actions of DWP. The courts made clear that under successive Governments dating back to 1995, the action taken was entirely lawful and did not discriminate on any grounds. During those proceedings, the Court of Appeal held that the High Court was entitled to conclude as a fact that there had been
“adequate and reasonable notification given by the publicity campaigns implemented by the Department over a number of years”.
We recognise the importance of providing information in good time about the state pension age to help individuals to plan for their retirement. Since 1995, the Government have used a range of methods to inform people about the increases in state pension age, including the provision of detailed and personalised information. The methods have included leaflets explaining the legislative changes, pensions education campaigns, press advertising and direct mailing exercises to millions of people. People have been able to request personalised state pension information since the 1980s.
John McDonnell
We do not know the timing of the general election—possibly November, but maybe later—but it is likely that we will have only about 10 sitting weeks between now and a general election. Can I impress on the Minister to take back to his fellow Ministers that we need the proposals rapidly in those 10 weeks, and certainly before recess, if we are to get a viable scheme through Parliament?
Paul Maynard
I am happy to confirm that I will take that message back. I have heard it clearly today. I understand the points about the Work and Pensions Committee’s findings, too. The right hon. Gentleman will have heard the Secretary of State—and me, in oral questions on Monday—say that we wish to have no undue delay. That remains the case. I recognise that people are frustrated by that phrase, but it is an accurate phrase. We do not wish undue delay. As I keep saying, it is a complex issue. It is not just a matter of ticking a box. It needs to be gotten right, and we understand all the ramifications and options that are open to us.
Between April 2000 and February 2021, the DWP provided more than 41.2 million personalised state pension statements, and it continues to do so. As well as issuing letters to the 6.9 million women and men born in the 1950s notifying them of the state pension age increase, the DWP sent around 17.8 million automatic state pension forecasts between 2003 and 2006, which included a leaflet explaining that the state pension age for women was increasing.
As I have outlined, the Government recognise the importance of this issue. The ombudsman report has been laid before Parliament, and we have been invited to take a view and engage with this issue. Today is one part of that. We will listen to the views of the House with great seriousness. The report is currently being given active and extensive consideration within the Department, by me and by the Secretary of State. We will seek to provide a further update without, as I say, undue delay, and I hope to give the issue the airing that it deserves as soon as that is practically possible.
State Pension Changes: Women
Debate between John McDonnell and Paul Maynard(8 months, 2 weeks ago)
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Paul Maynard
I have already given way, and I am running out of time. I do apologise.
I have listened carefully to the arguments that have been made today. I would like to set out further the range of support available both for those making provision for their retirement and for those who have reached state pension age.
In 2016, the state pension was reformed with the introduction of a new state pension to be simpler and more sustainable. It had the clear objective of providing the foundation for private saving. In this way, the state provides a base to which people can add to provide the pension they want through their retirement.
The new state pension improves outcomes for many women, carers and self-employed people, who often did less well in the past. State pension outcomes are projected to equalise for men and women more than a decade earlier than they would have under the old system. On average, women receiving the new state pension receive about £18 a week more than women under the pre-2016 system. Under the new state pension system, women currently receive an average of 97% of the amount that men receive, compared with 85% under the pre-2016 system.
Automatic enrolment has helped millions more women to save with a pension, many for the first time. Participation rates for women are catching up with those for men. Pensions participation among eligible women working in the private sector was at 86% in 2022, up from 40% in 2012.
Pension credit is extra money to help with daily living costs for people over state pension age and on a low income. It tops up a person’s other income to a minimum of £201.05 a week for single pensioners and £306.85 a week for couples. People with a severe disability, carers and those who are responsible for a child or young person who lives with them can get more. Pension credit can also include extra amounts for certain housing costs such as ground rent or service charges. The pension credit case load is just under 1.4 million people, of whom 66% are female; in fact, of the total case load, 63% are single women. People receiving pension credit may also get help with other costs, including rent, via housing benefit, and council tax.
The latest statistics show that by 2021-22, the poverty rate for pensioners had decreased by two percentage points since 2010. For both female and male pensioners, there was a decrease of two percentage points over the same period. In 2021-22, there were 200,000 fewer pensioners in absolute poverty, after housing costs, than in 2010. By 2024-25, working-age and extra-costs disability benefit rates will increase by 6.7%, and relevant state pension rates, including the standard minimum guarantee in pension credit, by 8.5%, following the 10.1% increase in April 2023.
Paul Maynard
I am about to conclude, because I have only a minute left before the hon. Member for Strangford needs to have his concluding say.
I thank the hon. Member for Strangford for raising such an important issue, which I know concerns very many people—thousands across each of our constituencies. I have the greatest sympathy for anyone who has found themselves in difficult circumstances, but I believe that the welfare state can be and is effective in providing support for those who need it. In particular, there is a range of established support that this Government provide for people either nearing or over state pension age. Additionally, we have made cost of living payments available to those who are most vulnerable.
As I have outlined, the Government take the matter of state pension age extremely seriously. The Department is committed to giving the best service it can, and we will very carefully consider the ombudsman’s final report.