Women’s State Pension Age: Financial Redress Debate
Full Debate: Read Full DebateJulian Lewis
Main Page: Julian Lewis (Conservative - New Forest East)Department Debates - View all Julian Lewis's debates with the Department for Work and Pensions
(2 days ago)
Commons ChamberIt is often said in times of financial crisis that some institutions are too big to fail. Unfortunately, in this case it is a question of some campaigns being seen as being too big to succeed. I am quite sure that the real reason why the Department for Work and Pensions is so resistant to this cause is not that it does not recognise the justice of the WASPI women’s cause, so eloquently set out by the hon. Member for Salford (Rebecca Long Bailey), who has given excellent leadership on this cause through the all-party parliamentary group. Rather, behind the scenes— I do not know this, but I am sure that I am right—it is putting forward arguments along these lines: “There are so many of them; the bill will simply be too great. What’s more, they’re only going to get between £1,000 and £3,000 each, which won’t be anything like full financial compensation, so what’s the point in giving in to this demand?” I am quite sure that if the numbers were fewer and the overall bill was not so significant, we would not see this resistance to an obviously valid and viable cause.
Does the right hon. Member agree that we cannot put a price on justice?
I do indeed. Of course, in any event, the women realise that they will not get anything like full compensation, but they want the symbolic acceptance and acknowledgement of the injustice that they have received. As we have heard from those on both sides of the House, this resistance puts at stake the credibility of the ombudsman system itself. Undermining that will have a knock-on effect: in many future cases, the bill for implementing an ombudsman’s recommendations and findings will not be anything like as large, but people and institutions will be emboldened to defy the ombudsman.
One of the best short summaries of the case was put forward in a previous Labour manifesto, which said:
“a generation of women born in the 1950s have had their pension age changed without fair notification. This betrayal left millions of women with no time to make alternative plans—with sometimes devastating personal consequences.
Labour recognises this injustice, and will work with these women to design a system of recompense for the losses and insecurity they have suffered.”
Admittedly, that was the 2019 manifesto, and Labour at that time was led by the right hon. Member for Islington North (Jeremy Corbyn), but that does not mean that the manifesto was wrong in what it said. It was absolutely right in its summary and its recognition that something must be done.
Indeed, when the Secretary of State for Work and Pensions was in opposition in the last Parliament, she was cautious in what she said about the ombudsman’s report, but she did acknowledge the following:
“we will take time to give the report proper consideration too, and continue to listen respectfully to those involved, as we have done from the start.”
She added:
“we won’t be able to right every wrong overnight.”
That would have been the basis for at least an attempt to give the symbolic redress and acknowledgement that I think most fair-minded people agree is due.
If the Government had come back and said, “We can’t implement the ombudsman’s recommendations in full at the moment, but we shall try and do it in stages, or over a period, or will at least go some way towards a symbolic acceptance of the wrong that has been done,” I think most reasonable people would have understood the situation and have been willing to at least consider some sort of compromise.
Does the right hon. Member agree that this is an issue of not just policy, but dignity? These women’s voices must be heard, and the Government have a responsibility to honour commitments made, to give fair treatment, and to ensure that something is done.
Yes. In a way, the Government have fallen between two stools. The report, as we have heard, anticipated that the Government would be reluctant to the right the wrong done to so many people at once, but nevertheless the Parliamentary and Health Service Ombudsman felt that justice required compensation to be paid. It knew that there would be this Government resistance, so it must have meant a lot to the ombudsman to still go down this highly unusual route of trying to present its report directly to Parliament, because it felt it would not get far by dealing with the Government directly.
One might have expected the Government to offer a scheme that fell some way short of the ombudsman’s recommendation, but their outright rejection of any restitution at all is rather insulting to the women whose complaint was upheld by the ombudsman. As we have heard, despite the DWP claiming to accept the findings, and even apologising for its maladministration, it is not offering a penny in restitution, and is relying in its response on a deeply unconvincing polling exercise that supposedly found that nine out of 10 of the affected women knew in advance that their state pension age was going to change. If that was the case, why did so many of them carry on as if nothing was going to change at all? A few moments ago, the hon. Member for Falkirk (Euan Stainbank) asked about the nature of the sampling that was done; only some 200 women born in the 1950s were included in the sample of nearly 2,000 people surveyed, which led to that misleading result.
I know the Minister has a great deal of expertise and a strong track record on issues of this sort from his former career, before he came to this House. I therefore appeal to him to at least reach out the hand of negotiation and discussion; to accept the offer that reasonable people are making to the Government; and to sit down and talk to them, and not to let the whole thing go through the courts, which would lead to an adversarial deepening of hostility and, inevitably, a less desirable outcome for everyone concerned.
With an immediate four-minute time limit, I call Brian Leishman.
The hon. Gentleman is welcome to choose his tone; I will continue to the end of my comments. My job is to come and explain the Government’s decision, and to be held accountable for it. That is what I am doing today, and what I will continue to do over the course of my remarks. It is right that the Government are then asked questions about their decision; that is the nature of this democracy, as the hon. Member for East Wiltshire said.
An important consideration in the Government making this decision was that evidence showed that sending people unsolicited letters is unlikely to affect what they know. That is why letters are sent only as part of wider communication campaigns. This evidence was not properly considered by the ombudsman. Another consideration was that the great majority of 1950s-born women were aware of the state pension age changing, if not of a change in their specific state pension age, as several hon. Members have pointed out. My hon. Friend the Member for Salford mentioned the statistic of 43%, referring to the 2024 rather than 2023 survey. However, as she will know, that refers to all women, including some women as young as 16; if we look at the cohort of women born in the 1950s, the figure is far, far higher. On those and other grounds, we rejected the ombudsman’s approach to injustice and remedy.
Members will be aware that litigation is live, so I will not go into lots more detail on the research evidence, which is the core of that litigation. I will just say two things: first, our decision was based on published research reports, which were robust and met professional standards; secondly, the same awareness research, which the right hon. Member for New Forest East disparaged, was used by the ombudsman.
Will the Minister explain to the House why not one single speech in this debate until his has taken the line that he is taking? Everyone who has spoken in this debate believes that some compensation, at least symbolically, should be paid.
I thank the right hon. Member for his intervention. I am a liberal man. People will come to different views on the evidence. There are many Members in the House who have campaigned powerfully on this issue over many years, and I respect the work they have done on that. I am setting out a different view from the one that the right hon. Member has taken. That is the nature of policy choice, the nature of accountability, and the nature of this debate.
The ombudsman is clear that redress and compensation should normally reflect individual impact, as it did in the case of the Equitable Life compensation scheme that an hon. Member mentioned. And they spell out the challenges of assessing the individual circumstances of 3.5 million women, not least given that it took the ombudsman nearly six years to look at just six cases. The reality is that assessing them would take thousands of staff very many years. We gave detailed thought to whether we could design a fair and feasible compensation scheme. However, most of the schemes that were suggested would not focus on women who lost opportunities as a result of the delay in sending letters. Rule-based schemes, such as that suggested by the Work and Pensions Committee, would make payments on the basis of the likes of age rather than injustice. Simply playing a flat rate to all 3.5 million women born in the 1950s, irrespective of any injustice, is also hard to justify.
Fundamentally, though, our decision was not only driven by cost—to answer directly the question of the hon. Member for Falkirk (Euan Stainbank)—but by the fact that we do not agree with the ombudsman’s approach to injustice or remedy for the reasons that I have set out. Indeed, our commitment to pensioners can be seen in the significant fiscal investments that we are making in our priorities for pensioners, including raising the state pension and rescuing the NHS.