State Pension Age (Women)

Debate between Justin Madders and Baroness Keeley

Thursday 7th January 2016 Commons Chamber

[Barbara Keeley]

Before the 1995 Act changes, the independent Social Security Advisory Committee said that savings made on raising the state pension age should be spent on the most vulnerable groups, with help specifically for low-paid women, women returning to work and carers. That advice was not followed. Recently, a court in the Netherlands ruled that raising the state pension age could be considered a breach of the European convention on human rights. A woman in her 60s appealed against a two-year increase in her pension age because it created an “individual and excessive burden” on her. The court found in her favour. It is welcome that some Conservative Members who voted for the acceleration of the state pension age in 2011 are now supporting the WASPI campaign. However, other Conservative Members are blaming European legislation for the shabby treatment of the pensions of 1950s-born women—but the facts are against them.

When the Minister answered the debate on 2 December, he said:

“Equalisation was necessary to meet the UK’s obligations under EU law to eliminate gender inequalities in social security provision.”—[Official Report, 2 December 2015; Vol. 603, c. 145WH.]

The same point has been made to WASPI campaigners in replies from Conservative MPs. However, research done by the House of Commons Library and my own research show that that is not the case. EU law allows countries to have differences in their state pension age, and it also allows lengthy transitional arrangements to be made.

Library research notes that directive 79/7/EEC requires

“the progressive implementation of the principle of equal treatment for men and women in matters of social security.”

[Justin Madders (Ellesmere Port and Neston) (Lab)]

My hon. Friend is making an excellent point about the fact that we need to reach a level of equality on this issue, but she is absolutely right that it is the pace of change and the transitional arrangements that are so unfair. Does she not agree that the continual changing of the goalposts goes against the sense of fair play, justice and fairness on which this country should be based?

[Barbara Keeley]

Absolutely. Furthermore, this background of EU law is not really a cause of the problem. The directive allows for different state pension ages. Indeed, article 7 of the directive specifically states that the determination of the state pension age is the right of member states. A 2007 European Commission report confirmed that different state pension ages are allowed. Equalisation of state pension ages is therefore described as “an objective to be strived for”. The Netherlands, Portugal and France have no current difference in their state pension age, but Austria and Hungary are equalising the state pension age with long transitional arrangements. In other states, a difference in pensionable age is currently maintained, or changes are being made very slowly. State pension ages will not be equalised in Poland until 2040, or in the Czech Republic until 2044. Bulgaria and Romania are retaining different state pension ages. EU law therefore allows different state pension ages and long transitional arrangements, and the Government cannot hide behind it and use it to explain what I see as a £30 billion “pensions grab” from 1950s-born women.

Transitional protections were discussed during the debates on the Pensions Act 2011 but were not brought forward by Ministers. It is worth saying that other countries have had transitional arrangements, or have amended their legislation to help specific groups. The Netherlands has a bridge pension. Italy brought in extensive pension changes, but made exemptions for people who were made redundant or who had a defined level of contributions. Later, Italy realised that public sector workers with a contracted career exit pathway risked being left with no job and no pension owing to the reforms. It then legislated six adjustments between 2012 and 2015 to protect those workers, via special derogations. The UK can and should put in place additional transitional arrangements to address the unfair consequences of this Government’s Pensions Act.

One of the unfair consequences is having to continue to pay national insurance contributions even though many 1950s-born women have already contributed for more than 40 years. Unfair differences in pensioner benefits also exist at a regional level. In November 2012, the Greater London Authority restored to Londoners aged between 60 and the state pension age the free travel that had been lost under the Pensions Act 2011. Bringing in the 60+ London Oyster card , the Mayor of London said:

“Londoners who have grafted all their lives and expected to receive free travel on retirement, quite rightly felt cheated when the age escalator removed the Freedom Pass from their grasp.”

What about women living outside London who have “grafted all their lives” and who also felt “cheated” when the 2011 Pensions Act removed both retirement and free travel from their grasp?

The UK reforms cannot be justified on the basis that the previous system was unsustainable. Historically, the UK state pension has been one of the lowest in the OECD. EU law allows transitional arrangements, so the Government cannot justify their changes by hiding behind that law. The lack of transitional arrangements in the UK for 1950s women is due to decisions made by this Conservative Government. I urge the Minister to look again at the issue and at ways of providing adequate transitional protection.

State Pension Age Equalisation

Debate between Justin Madders and Baroness Keeley

Wednesday 2nd December 2015 Westminster Hall

[Barbara Keeley]

I thank my hon. Friend for her intervention and for applying for this debate with me, so that we could get time allocated for it.

I turn to the conclusions of Paul Lewis, a financial journalist, on the notification of the changes undertaken by the Department for Work and Pensions, because notification is a key issue. He has investigated it thoroughly, alongside campaigners from Women Against State Pension Inequality. He has written:

“Millions of women had their state pension age delayed—in some cases twice and by up to six years in total—without proper notice. That is the only conclusion to be drawn from the details of how they were informed of the changes which have now been obtained from the Department for Work and Pensions.”

Paul Lewis reveals quite a detailed list of those changes, writing:

“The Government did not write to any woman affected by the rise in pension ages for nearly 14 years after the law was passed in 1995.

More than one million women born between 6 April 1950 and 5 April 1953 were told at age 58 or 59 that their pension age was rising from 60, in some cases to 63.

More than half a million women born 6 April 1953 to 5 April 1955 were told between the ages of 57 and nearly 59 that their state pension age would be rising to between 63 and 66.

Some women were told at just 57½ that their pension age would rise from 60 to 66. Women were given five years less notice than men about the rise in pension age to 66”.

He goes on to say:

“The Government now says that in future anyone affected by a rise in state pension age must have ten years’ notice.”

Indeed, the Pensions Commission has said:

“We have suggested a principle that increases in SPA”—

that is, state pension age—

“should be announced at least 15 years in advance.”

However, Paul Lewis concludes that none of the 1950s-born women had even 10 years’ notice,

“nor did the men affected by the change.”

Women who have planned for their retirement suddenly find that they have to wait up to another six years before they can retire. Many find themselves without a job, without a pension or pensioner benefits, and without money to live on. Many of the 1950s-born women affected by the changes are living in real financial hardship, and they feel betrayed by the Government.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

I congratulate my hon. Friend on securing the debate. I am staggered to hear of the abject failure in notification and even more staggered to hear that the Pensions Minister does not feel able to do anything about it. Surely at the very least the Government should be able to ensure that these kinds of mistakes are not repeated in the future?

[Barbara Keeley]

Indeed, but there is the very important question of the impact on women now—millions of women, many of them living in real financial hardship. We must learn lessons for the future, but we also have to think of the people who are affected now.