State Pension Age (Women)

Lindsay Hoyle Excerpts

Thursday 7th January 2016 Commons Chamber

[Alan Johnson (Kingston upon Hull West and Hessle) (Lab)]

This is a crucial debate not least for my constituents Jackie Williams and Debbie Watkins who are active in the WASPI campaign. My right hon. Friend might be pleased to know that the Minister responsible for this issue says the reason she cannot carry out the terms of this motion is that it would be impossible. He and the House might care to know that, as Ros Altmann, she was a very effective advocate on pensions issues when I was the Work and Pensions Secretary, and when we were arguing that the pension protection fund we had introduced should not be applied retrospectively, as she wished, I said it was impossible. Ros said to me, “That word doesn’t—”

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order, Mr Johnson; come on, you are in the next debate as well. In the interests of fairness, we have a very tight time limit and must have short interventions so nobody drops off the list—and I know you would not want to do that to anybody.

[Mr Howarth]

Thank you, Mr Deputy Speaker. My right hon. Friend brings a wealth of experience and understanding of this subject to the contribution he has just made and I am very grateful for it, lengthy though it may have been.

If I can continue with the quote I was midway through from my constituent, she goes on to say:

“This requirement has now been reduced to 30 years. To be faced with an overpayment in the old pension requirements of 10 years contributions which I am no longer eligible for and to have a shortfall of 6 years in the new pension requirements is beyond belief.”

I want to conclude by quoting my constituent again. Her comments illustrate why the WASPI campaign is so reasonable. She says:

“I understand that the equalisation of state pensions had to be addressed but I object to the unfair way that this was handled creating more issues of inequality in the process. Future generations will be given 10 years notice on age changes whereas I and many like me were not. I am requesting that transitional protection/arrangements be provided for the 1950s women affected by these changes.”

Of course all Governments have to consider the financial situation, make proper arrangements and understand the economic difficulties that they face, but this is a basic question of inequality and unfairness.

--- Later in debate ---

[Several hon. Members rose—]

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. There will be a five-minute limit from now on.

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[Marie Rimmer (St Helens South and Whiston) (Lab)]

I congratulate the hon. Member for Paisley and Renfrewshire South (Mhairi Black) on securing the debate. I also congratulate members of WASPI—many of the women are in the Gallery today—on its magnificent campaign. Had they not had that campaign, I fear that the problem would have gone unnoticed and certainly would not have been addressed.

The Pensions Act 1995 increased the state pension age for women from 60 to 65 over the period April 2010 to April 2020. It was not a short-notice change—the notice was 15 years. In a debate in October 2013, the Minister, Steve Webb, accepted that some women did not know about the change at the time, but went on to say:

“Although it was all over the papers at the time, these women were a long way from pension age and probably turned the page when they saw the word ‘pension’”.—[Official Report, 8 October 2013; Vol. 568, c. 54WH.]

What a way for a Government to expect people to find out!

The coalition Government legislated in the Pensions Act 2011 to accelerate the increase in the state pension age, which became 65 in November 2018. They intended to equalise the state pension age at 66 by April 2020, but that was amended. During that debate, the then shadow Minister, my hon. Friend the Member for Leeds West (Rachel Reeves), expressed concerns. Largely because of that, the date was amended and we got a reprieve of six months. The Government seem to believe that that is some compensation.

I will not say much about the impact, because hon. Members who have read about it will know. Anne Keen, one of my constituents and a leading WASPI campaigner, is in the Gallery today.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. I did not mean to do this and I have tried to ignore it, but hon. Members are not meant to make reference to the Gallery. As much as we appreciate the people here, it is meant to be about the Chamber. I am sorry about this but we must not keep making reference to the Gallery.

[Marie Rimmer]

I will not do so again, Mr Deputy Speaker.

The women affected were not informed of the changes to the system, so it came as a complete shock to Anne Keen when she discovered that her plans for retirement were in tatters 18 months before her 60th birthday. She said:

“In 2012 I received a letter saying my new state pension age was 63 years and eight months. I was absolutely shocked because I wasn’t told about it.”

She explained that people have been caught out by Department for Work and Pensions mismanagement following changes to pension law in 1995 and 2011. They were caught out again in 2011 when further increases were introduced with, they claim, little notification before their retirement age. She went on to say that many women were having to dip into their savings to survive rather than relax and enjoy their retirement as they had intended and planned. She said:

“Unless people requested a pension forecast, they would not have known about it. All we are asking for is a fair transitional arrangement”

and some consideration.

WASPI has raised important concerns about the changes, which affect millions of women who were born throughout the 1950s, and who are unfairly bearing the burden of the increase in the state pension age. In 2004, DWP research showed that only 43% of those affected by the 1995 Act were able to identify their retirement age. In 2008, the National Centre for Social Research found that only 43% of them were aware that the state pension age was 65. This change has left many women in financial hardship.

Anne Keen says that the situation is worrying. She points out that privileged people, such as MPs, judges and civil servants, have had their occupational pensions protected if they are within 10 years of normal retirement age. Why are women not being treated in the same way? Why are they not afforded the same protection?

Ten years’ notice will be given for any future changes to the state pension age so that people can cope with the change in circumstances. Is that not an admission that what has happened is wrong? The Government have said that they will not revisit the state pension age arrangements for women affected by the 1995 and 2011 Acts. These women have been dealt a severe and unjust blow. Put simply, the Government must revisit this matter and address the concerns.