Transitional State Pension Arrangements for Women

Justin Tomlinson Excerpts

Wednesday 24th February 2016 Commons Chamber

[The Parliamentary Under-Secretary of State for Disabled People (Justin Tomlinson)]

I am sorry that the limited time available prevents me from paying credit to all the Members who have spoken today. There has been real passion, and well thought out and measured responses on both sides of the House, drawing on the challenges we face, the concerns raised directly by residents and the work of the WASPI campaign, to which many Members are paying close attention.

I pay credit to the hon. Member for Washington and Sunderland West (Mrs Hodgson) and to the hon. Member for Burnley (Julie Cooper), who made the shortest speech today and gave some people some extra time. I understand the challenge that my hon. Friends the Members for East Worthing and Shoreham (Tim Loughton) and for Mid Bedfordshire (Nadine Dorries) have found themselves in. It is a difficult decision, particularly to go against our own Government. My hon. Friends the Members for Blackpool North and Cleveleys (Paul Maynard), for Weaver Vale (Graham Evans), for Salisbury (John Glen) and for Gloucester (Richard Graham) set out in great detail the wider issues and challenges we face. The key to that was eloquently put by my hon. Friends the Members for Sherwood (Mark Spencer) and for Bexhill and Battle (Huw Merriman).

The Opposition have set out six options, which are very attractive. How simple life would be if we could simply say yes to all six, or any number of those six options. However, the challenge is that not a single one has been costed. Not a single one has suggested what we should not be doing. There is occasionally vague guesswork on what could pay for something. I was in two debates yesterday in Westminster Hall. The same vague ideas were expressed on how things could be paid for.

[Barbara Keeley]

Will the Minister give way?

[Justin Tomlinson]

Because of the lack of time, I will not give way.

We have to look at the acceleration of state pension age equalisation, which is being introduced by this Government in order to achieve gender equality in state pension provision and to provide a sustainable system that can work for future generations. Often that is forgotten. It is always about now, not those future generations, our children and our children’s children, to whom all too often politicians have bequeathed yet more debt.

In recent years, because of higher life expectancy and the difference in state pension ages, women on average have been receiving considerably more state pension over their lifetime than men. Not only was equalisation necessary to meet the UK’s obligations under EU law, but it provides the foundations for a fairer state pension that treats men and women equally.

[Ian Blackford]

Will the Minister give way?

[Justin Tomlinson]

I apologise to those who want to intervene. Those who debated with me in Westminster Hall know that I will always try to answer as many questions and interventions as possible. We simply do not have time today.

Equalisation provides the foundations for a fairer state pension that treats men and women equally. That is something we can all agree on, on both sides of the House. The changes to state pension age were fully considered when the 2011 Act was passed. The Government listened to concerns at the time and adopted a concession worth over £1 billion, which benefited almost a quarter of a million women. Eighty-one per cent. of women affected will experience a delay of 12 months or less, compared with the previously legislated timetable.

The Government are also committed to helping older workers stay in the labour market and have extended the right of flexible working to all employees to help achieve this. We are now seeing record numbers of women in employment—over 1 million more since 2010. With the introduction of the national living wage, over two thirds of those who will directly benefit will be women. That is something we can all be proud of. For those who are having difficulties working, the Government provide the same support for women as for men of the same age—in work, out of work, and disability benefits.

I also appreciate the comments made about Government communication. My hon. Friend the Member for Weaver Vale made great play of this. All Governments of all political colours have always wrestled with the question of the best way to communicate. The DWP did write directly to all the individuals affected by the 2011 Act using the address details recorded by Her Majesty’s Revenue and Customs at the time. More than 5 million letters were sent at the time. A service has also been available for individuals to request their state pension estimates, and this service has been providing individuals with their state pension age since 1995. We have taken these lessons on board with the auto-enrolment scheme, with which we are seeing very successful engagement.

We must view these changes as part of the wider pension reforms. Those reaching state pension age from April of this year onwards will receive the new state pension, a reformed system that particularly benefits women who would have had poor outcomes under the current system. Over 3 million women stand to gain an average of £11 per week as a result of the changes by 2030.

In conclusion, I remind the House of the reasons for the reform of our state pension system. To function effectively, it has to be fair, affordable and sustainable. These changes made to the state pension age under the Pensions Act 2011 make an important contribution to achieving these aims.

Question put.