State Pension Age: Women

Lord Evans of Rainow Excerpts

Wednesday 30th November 2016 Commons Chamber

[Graham Evans (Weaver Vale) (Con)]

Will the hon. Gentleman give way?

[Ian Blackford]

I hope that the Government are beginning to get the picture. For each month that passes, women’s pensionable age is increasing by as much as three months. We should just dwell on that—a three-month addition to pensionable age for each month that someone was born later than their neighbour, friend or colleague.

I spoke about a woman born in March 1953 who retired this year at age 63, but a woman born a year later, in March 1954, will not retire until September 2019, when she will be aged 65 and a half. [Interruption.] Conservative Members seem to think that this is funny, but we are talking about women who are being significantly disadvantaged over too sharp an increase in women’s pensionable age. Those Members might find that acceptable, but I am afraid that I, my colleagues and many millions of other people in the country certainly do not. A woman born six months later, in September 1954, will have to wait until she is 66 in September 2020. Over an 18-month period, a woman’s pensionable age will have increased by three years.

As we keep saying, we are not against equalisation of the state pension age—[Interruption.] My colleagues and I have said that in every speech we have given in this House. We have made it crystal clear, as have the WASPI women, that we agree with equalisation. It is the pace of change that is the problem, and Conservative Members are burying their heads in the sand over it and are refusing to face the reality.

[Ian Blackford]

Absolutely. Of course we have to face the gender inequality that has been with us, with women paid less for such a long time and women gaining less access to occupational pension schemes, but Government Members just seem to want to make things worse. As we keep saying, we are not against equalisation of the state pension age; it is the pace of change and the lack of appropriate notice that are the real issues.

[Graham Evans]

Will the hon. Gentleman give way on that point?

[Ian Blackford]

I will give way one more time.

[Graham Evans]

I am most grateful. If Germany can introduce equalisation of the pension age in 2009, why cannot the United Kingdom do the same? We are behind the game.

[Ian Blackford]

I am absolutely dumbstruck! I do not know how many times we have to say it, but we are not against equalisation. We support it. It is the pace of change imposed by the Government that is the problem.

While we are on the subject, the Government might wish to consider the fact that the Polish Parliament met on the 16th of this month and agreed to reverse the increases in pensionable age because they recognised the unfairness. Perhaps we should take a leaf out of the Poles’ book, rather than this one.

--- Later in debate ---

[Graham Evans (Weaver Vale) (Con)]

I am grateful to you, Mr Deputy Speaker, for giving me the opportunity to speak in this important debate. I am a little surprised that there are so few Members on the SNP Benches.

There is a clear need for equalisation of the state pension age. We are all agreed on that. We have an ageing population. People are leading healthier, longer lives. Given that an ever greater proportion of the population are drawing pensions, while an ever smaller proportion are contributing through national insurance, the pension system risks becoming unsustainable without the important measure that we debated and voted on in 2011.

On the most fundamental level, however, we as a House should champion equality. The new single-tier pension is much fairer and simpler. People who have worked for 35 years will receive £8,000 a year. It is a very simple process: 35 years of work will give us £8,000. I have already worked for 35 years, but I will not qualify for my pension until I am 67; the same applies to Mrs Evans. As we all live longer and healthier lives, that will increase, I am sure. Let us make that clear, here and now. The single-tier pension also takes into consideration for the first time the time off that people take to have children—maternity and paternity leave.

I supported the measure. When I was a member of the Work and Pensions Committee we investigated the matter. I contacted the DWP to find out my retirement date, and I have to say to the Minister that the document I received was rather drab—not the most exciting document to read. The first time I went through that process, in 2013, I was told I was going to retire at 65; when I did it in 2014, the answer was 66; and the following year it went up to 67. I had to read the documents very carefully indeed, so I think people can be forgiven for not realising that their retirement date had changed. I encourage the Government to take a look at the personalised documents that are regularly produced, with a view to perhaps introducing a little colour—for example, making the retirement date red and easier to see.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

I am grateful to the hon. Gentleman for his comments about information, but this is not a small mistake. I have constituents who will lose £30,000 or more by the shifting of the goalposts. Does he not think that because of the failure to communicate the changes, the Government have a duty to look again at transitional arrangements for the women affected?

--- Later in debate ---

[Graham Evans]

I do not agree, because, to be fair to the DWP, it has communicated with people. I think it could communicate better, as I have just described, but following the 1995 Act the Department issued a leaflet, among other press and publicity measures including direct mailings, to advise the public of the changes. In 2004, during the 13 years of Labour Governments, the DWP ran an information campaign distributing more than 2 million pension guides alongside adverts in the press and women’s magazines to complement an interactive online state pension calculator. In addition, all state pension statements issued from 2001 would have included as standard the new state pension age as determined by the 1995 changes. Since then, more than 11 million statements have been issued.

The Government have been notifying women of the changes. Those most affected by the 2011 changes were written to directly. That involved sending out more than 5 million letters between January 2012 and November 2013. Research carried out by the DWP found that 6% of women who were within 10 years of pension age thought that their state pension age was still 60. However, those efforts were not wholly successful. Had they been, we would not be here now debating this subject. There are lessons to be learned by Governments of all colours, present and future, on effective communication of such important matters. Those who planned for their retirement want to live the retirement they planned for.

After the 2011 changes, the Government passed an amendment to the Bill that provided £1.1 billion-worth of transitional funding, delaying the equalisation of the state pension age. We have already considered this matter and taken mitigating action. The new state pension has been brought forward a year and many women will be significantly better off than they would have been. By 2030, more than 3 million stand to get an extra £550 a year. Likewise, the introduction of the triple lock, which ensures that the state pension rises by inflation, wages or 2.5%, whichever is greater, ensures that the basic state pension will be over £1,100 a year higher than it was at the start of the last Parliament.

To undo the 2011 changes would cost £30 billion in addition to the loss of £8 billion in tax revenue. To undo the 1995 changes—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order.