Transitional State Pension Arrangements for Women

Lady Hermon Excerpts

Monday 1st February 2016 Westminster Hall

[Ms Ritchie]

I thank the hon. Lady for that very compelling intervention. That is absolutely right. Women in the lower age brackets will be deeply affected, because they will have to wait longer for their pensions. Many of them are in caring roles, perhaps because their partners are not in good health, so their family income levels are desperately below the level needed to live on.

[Lady Hermon (North Down) (Ind)]

I speak on behalf of the many women in North Down who are furious about the changes to their pension arrangements. I am one of the 1950s ladies—I am not going to declare my date of birth—so I have a personal interest in this matter. I wrote to Baroness Altmann—I had enormous regard for her before she became Baroness Altmann—at least three weeks ago and invited her to Northern Ireland to meet the affected women face to face. As the hon. Lady said, the situation in Northern Ireland is slightly more complicated than elsewhere in the United Kingdom. Does she share my bitter disappointment that I am still awaiting a reply?

[Ms Ritchie]

I thank the hon. Lady for her very helpful intervention. Of course I share her disappointment and disgust at the position being adopted by the Minister. In the other place, the Minister for Pensions did not take on board our points about the forgotten 14s. She did not acknowledge their financial position, and offered them no form of redress. I hope that the Minister here today, who responded some weeks ago, has had time to reflect and has realised that women will be expected to work for longer for a smaller pension than they had expected and planned for. We have been asked to ponder and reflect on solutions today, and the clear solution is to introduce transitional arrangements. The women behind us in the Public Gallery and throughout the UK should not have to lose out and pay the cost of a financial crash that was not of their making.

--- Later in debate ---

[Mr Vara]

I will not give way.

The Government have a duty to ensure the sustainability of the state pension scheme, and it would be irresponsible to ignore such developments.

Employment prospects for women have changed dramatically since the state pension age was first set in 1940. The most recent figures show a record female employment rate of 69.1%, with more than 1 million more women in work than in 2010. I am sure that Members welcome figures showing that the number of women aged between 50 and 64 in work is also at a record high, with more than 100,000 older women in work than at this time last year.

[Lady Hermon]

Will the Minister give way?

[Mr Vara]

I will not.

Turning to our broader reforms, we have introduced a package of measures to transform the pensions system. The triple lock is massively boosting the state pension, which will be £1,000 higher from April than would have been the case if we had uprated by earnings over the past six years. In addition, we have protected the winter fuel payment and permanently increased cold weather payments. We have created a new, simpler state pension, which will come in from April with a full rate of £155.65 a week. That means that 650,000 women will receive an average increase of £8 a week for the first 10 years. As that will be set above the basic means test for pensioners, people will have a clear platform to save on.