Prison Officers: Retirement

Lord Bellamy Excerpts

Thursday 30th March 2023 Grand Committee

[The Parliamentary Under-Secretary of State, Ministry of Justice (Lord Bellamy) (Con)]

My Lords, I thank the noble Earl, Lord Attlee, for tabling this Question and all noble Lords who have spoken this afternoon. I will try to explain the Government’s position but, before I do so, it is right for me to highlight and pay tribute to the vital role that prison officers play in keeping the public safe and rehabilitating offenders. Prison officers and probation staff are vital key workers; many go above and beyond the call of duty to keep safe the public, their colleagues and those committed to their care. One is hugely impressed by the commitment of prison staff, who work in the most challenging of circumstances.

I will first make a clarification regarding a phrase used in the Question and at times this afternoon: the “retirement age” of 68. This is the age at which the state pension is fully payable, so we are not talking about a retirement age; we are talking about the age at which a full pension is payable. Nothing prevents anyone retiring before 68; many in the prison service retire before that age and very often return part-time or do other jobs. We are talking about the state pension age and the fact that, in line with the rest of the Civil Service, prison officers at the moment qualify for the full pension at that age.

I should say to noble Lords, although I am not fully apprised of the details, that I think there is a Statement today about the fact that the Government are considering the point at which to introduce the age of 68. There is talk of deferring the introduction until after the next general election in 2026, having regard to changes in life expectancy following the pandemic and other factors. However, this afternoon, let us continue with the hypothesis that we are talking about a difference between the state pension age which applies to all prison officers and the whole of the Civil Service, as compared to the lower pension age that applies to police officers and firefighters. I think I can leave out of account the armed services because we are probably in general agreement that that is a different case, for fairly obvious reasons.

It is also worth recording that, as I understand it, as of today, about half the prison service in bands three to five, who joined before 1 April 2015, are on legacy pension arrangements of one kind or another. In those cases, their retirement age may well be 60 or 65, depending on the legacy arrangement in question. It is perfectly correct that the full pension age refers to recruits joining after 1 April 2015, and it is likely to be between 65 and 68, depending on the precise date of birth of the individual in question. As noble Lords have observed, that results from the reforms proposed by the noble Lord, Lord Hutton, in the Hutton report in 2011, subsequently enacted in the Public Service Pensions Act 2013.

The answer to the first part of the Question as tabled is that 68 is the full pension age because this is the age which applies to the Civil Service generally, which comprises hundreds of thousands of people, and reflects the recommendations of the noble Lord, Lord Hutton. It is quite true that his recommendation 14 proposed an exception for the uniformed services, but he defined uniformed services as the Armed Forces, police and firefighters. He suggested in those cases that the normal pension age should be 60, which was in fact an increase from 55. But he did not, as has been pointed out, include prison officers.

In effect, the thrust of this Question is whether prison officers’ retirement age should be reduced from that which applies across the public sector now to that of police and firefighters. For various reasons, the Government’s position is that such a reduction is not appropriate in the present circumstances—or, to put it another way, the Government are not yet persuaded that such a reduction is appropriate. I deliberately put it in that slightly softer way because I entirely accept the comments that have been made that the Government would wish to have a constructive relationship with the trade unions and, particularly, with the Prison Service. I will come back to the questions that have been asked in that regard.

The short answer to the Question that has been posed is that despite the very persuasive points that have been made by noble Lords today, the Government do not currently consider that the job of a prison officer, very demanding though it is, is sufficiently comparable with that of a firefighter or a policeman to justify a downward reduction in the qualifying age for full pension.

Firefighters have exceptional fitness requirements much more stringent than those for prison officers. They do life-threatening work. Similarly, the work of police officers, generally speaking, involves a higher degree of risk of fatality or serious injury. Since the noble Lord, Lord Hutton, did not include prison officers, it would not, in the Government’s view, be appropriate to reopen that issue.

Certain general points arise in this respect. The first is that in most western societies such as this one, the general trend is to raise the pension age. We know that that is happening as a result of longer life expectancy, ageing populations and falling birth rates. Looking at it for a moment in a global view, any responsible Government concerned with controlling public expenditure in the future would have to think very hard before reversing the trend—actually lowering a pension age. We have seen the opposite problem in France, where they are trying to raise a pension age. Fortunately, we have not had the same problem in this country. But, in current circumstances, to reduce the pension age would be going against the grain of wider economic trends and demands. That is a first point.

A second point, if I may make it—and I would be interested to know whether noble Lords agree—is that we are, as a society, moving away from the idea of a job for life, or that you start a career and continue in that career, like the distinguished examples given by the noble Lord, Lord Thomas, of his father and by the noble Lord, Lord Balfe, from his long career in the trade union movement: starting at 16 and remaining typically in that same occupation for many years. These days, people move around a great deal. The expectation that today someone of 18 would think of remaining with the Prison Service until he is 68 would be open to question, frankly, because modern youth, certainly the ones that one knows of anecdotally in one’s immediate circle, do not really think in those terms.

So the Government are cautious about acting on the basis that someone at the age of 20, deciding whether to join the Prison Service, is at all focused on whether their full pension would be payable in 2071, 2068 or 2063. In the Government’s view, that is not the kind of thing that affects recruitment or retention. So that is a further general point in relation to the impact—which is probably contestable—that this pension age has on the decision of a recruit to either join, or stay in, the Prison Service. These are rather detached points, and the cause and effect that has been raised is not entirely persuasive in the Government’s view, to put it as softly as that.

Thirdly, the issue of the contributions was raised. Under the standard Civil Service pension scheme, the employee rate is about 4.6%, and there is an employer contribution of 27%, which is pretty generous, compared to police and firefighter schemes, where the rate is between 12% and 14%. It is possibly the case that there is link between pay and pensions, and one has to look at them as package, as it were. In 2017, and on an earlier occasion in 2013, the Government considered, and negotiated with the prison officers, a package that would have involved a lower pension age but also had various points about pay and conditions. The POA voted on the package, and it was rejected.

So it is not as if the Government have not done anything in this respect; they have addressed questions of pay and pensions. The 2017 negotiations—they might be the Liz Truss negotiations to which the noble Lord, Lord Ponsonby, referred—did not reach agreement. The Government would say that that was not for lack of trying on the Government’s part, because a package was sufficiently agreed by the parties to be put to a ballot, but the ballot did not work. My noble friend Lord Attlee said that a retirement age of 65 had been “conceded” in the negotiations but, if I am correct, that would have been in the context of the wider package. I do not think that anything, as such, has been conceded separately as an appropriate retiring age for prison officers.

I will pick up the remaining points. I entirely accept my noble friend Lord Balfe’s suggestion that the Government desire a constructive relationship with the Prison Service. I am not in a position to commit the Prisons Minister to discuss this with the Prison Officers’ Association as a separate point, but the Minister is in constant touch with it, and I am sure that this, among other issues, will come up.

On this particular issue, there is a slight complication at the moment as a result of the McCloud judgment, which has thrown in some doubt the 2015 pension reforms as regards the younger members of the various pension schemes. There is a question about whether there is an age discrimination issue in those reforms. That is currently under consideration by the Cabinet Office, and, as I understand it, a remedy will be duly developed across the Civil Service to deal with that judgment. That may change the landscape a bit, but I think a detailed discussion of pensions should probably take place when that remedy is clear—or is announced or agreed, whatever the situation is—and would probably need to take place in relation to discussions about pay as well.

In relation to pay, the Minister for Prisons, my colleague Minister Hinds, has only today been giving evidence to the Prison Service Pay Review Body. Prison officers received a pay award last year, which has been welcomed. There are some signs of improved recruitment and retention. We have an extra 4,000 officers compared with 2017. Retention is still an issue in some prisons, but not in all prisons; some parts of the country have no trouble at all in recruiting and retaining prison officers. In general, the retention rate on average—I mean the rate of those not retained—is around 15% annually. Across both the public and private sectors, the national average is about 14% and in the Civil Service it is about 12.5%, so it is not completely out of line. But that is an average, and there is not a problem everywhere; it is only a problem in some cases. There are very focused efforts on trying to improve that situation, but the Government are not persuaded that there is a real link between the ultimate pension age at which the full pension is payable and the problems of retention and staffing in prisons. I think that they are due primarily to other factors and not the pension issue, although I accept that the pension issue has some symbolic value.

However, this is a difficult issue, and the Government would not wish to indicate that the position is for ever closed. It depends on what the remedy is that comes out of McCloud and further discussions. I would not presume for a moment to be able to replicate or follow the magnificent example of Viscount Monckton of Brenchley, who was mentioned earlier as a very fine Minister of Labour in the 1950s Conservative Government, but I hope that we find a way to move forward constructively with all parties on this question.

Committee adjourned at 4.47 pm.