Gender Pensions Gap

Lord Davies of Brixton Excerpts

Monday 27th June 2022 Lords Chamber

Asked by

[Lord Davies of Brixton]

To ask Her Majesty’s Government what steps they are taking, if any, to address the gender pensions gap.

[The Parliamentary Under-Secretary of State, Foreign, Commonwealth and Development Office and Department for Work and Pensions (Baroness Stedman-Scott) (Con)]

My Lords, this Government recognise the challenge of the gender pensions gap, primarily resulting from labour market participation differences. We are working with employers and partners on ways to address this, including by promoting women’s progression in workplaces and introducing shared parental leave and mandatory gender pay gap reporting. Automatic enrolment and the new state pension are enabling more women to build up pension provision in their own right, reducing historic inequalities in the pension system.

[Lord Davies of Brixton (Lab)]

My Lords, I thank the Minister for her reply and the Government’s recognition of the seriousness of the pensions gap. However, she must also know that her reply was insufficient in tackling this problem. The problem of the pensions gap is multifaceted: it is double the gap in pay—so, clearly, there are many issues involved here. Will the Minister agree that, to a significant extent, it is a carers’ pensions gap, and that any solution must involve better pensions for unpaid carers? The only solution to that will involve action by the Government directly to provide pensions for carers.

[Baroness Stedman-Scott (Con)]

I can respond to the noble Lord: where carers are working, they will be automatically enrolled, if eligible, into a workplace pension. If they earn below £6,240, they can still ask to be enrolled into the scheme, even though they are not automatically put into it. We have committed to remove the lower earnings limit; that benefits lower earners, including carers, working part-time. In addition to carer’s credit, there is a wide range of national insurance credits available to help people maximise their state pension.