State Pension Triple Lock

Debate between Laura Trott and Paula Barker

Tuesday 8th November 2022 Commons Chamber

[Laura Trott]

My hon. Friend, on this as with so many other things, is absolutely right. I will make some progress now on my speech.

At the heart of the 2016 reforms we made to the state pension was a correction of some of the historic unfairness in the previous system, particularly for women, the self-employed and lower-paid workers.

[Paula Barker]

Will the Minister give way?

[Laura Trott]

I am just going to make some progress, I am sorry.

That means women no longer need to rely on the pension contributions of their husbands, and it is more generous to those who spend time looking after their children, as my hon. Friends the Members for Guildford (Angela Richardson) and for Broadland (Jerome Mayhew) pointed out. As a result, more than 3 million women stand to receive an average of £550 more a year by 2030.

[Paula Barker]

Will the Minister give way?

[Laura Trott]

I am sorry, but as I said, I will make some progress.

Under the state pension, outcomes are projected to equalise for men and women by the early 2040s, more than a decade earlier than they would have done under the old system.

The other important pillar of the 2016 state pension reforms was automatic enrolment. That was raised by my hon. Friends the Members for South West Hertfordshire (Mr Mohindra), for Rother Valley (Alexander Stafford), for Broadland and for Heywood and Middleton. Automatic enrolment into workplace pensions has had a transformative effect on pension-saving participation. As my hon. Friend the Member for Broadland pointed out, private savings for pensions went down under Labour.

Over 10.7 million people have been automatically enrolled into a pension by more than 2 million employers in every sector of the economy, seeing an additional £33 billion saved into workplace pensions each year compared with 2012. Automatic enrolment has helped many previously under-represented groups to begin pension savings, such as low earners, young people and women.

[Laura Trott]

But it was not implemented under the Labour Government.

In 2012, 40% of eligible women working in the private sector participated in a workplace pension. As of 2021, that had increased to 87%—higher than for eligible men.

[Paula Barker]

Will the Minister give way?

[Laura Trott]

I will make a bit of progress; I have been quite generous on interventions.

We know that the coming months will be tough for everyone, but especially for pensioners. I thank all hon. Members who have raised cases on behalf of their constituents. The Government fully understand the difficulties that pensioners will face this winter and will stand by those in the most need. That is why the Government have made substantial support available for pensioners struggling with the cost of living this winter. As my hon. Friends the Members for Wantage (David Johnston) and for Gloucester (Richard Graham) pointed out, we have not heard much from the Labour Front-Bench team today about what their plan would be for this winter.

We have a plan that includes the £650 cost of living payment for those on pension credit to help with the rising cost of living. There is a £400 reduction on energy bills for all domestic electricity customers over the coming months and the £150 council tax rebate received by 85% of all UK households. Those on state pension will also receive an increased £500 winter fuel payment if they are under 80 or a £600 winter fuel payment if they are 80 or over. In total, that will mean that all pensioners receiving the state pension could receive up to £850 of additional support in the coming months and that pensioners on the lowest income who are claiming means-tested benefits will receive up to £1,500.