Luke Myer
Main Page: Luke Myer (Labour - Middlesbrough South and East Cleveland)Department Debates - View all Luke Myer's debates with the Department for Work and Pensions
(1 day, 16 hours ago)
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Manuela Perteghella
Absolutely. I will ask the Minister to take action later in my remarks.
Luke Myer (Middlesbrough South and East Cleveland) (Lab)
My constituents Phil and Ann have contacted me about the so-called clawback policy, which would see them lose about £2,000 a year from their pensions when they reach state pension age. They, like many former employees, believe that this is an unfair and morally questionable approach. Does the hon. Lady agree that that cannot be the right approach and that it must be reconsidered?
Manuela Perteghella
Yes. The hon. Member makes a good point.
The lack of transparency allowed this policy to persist under the radar. The formula used is regressive and unfair. For a start, the deduction is based on the full state pension rate one year before retirement, not on salary or actual state pension received. It is then divided by 80 and multiplied by years worked. The result? The longer someone worked and the less they earned, the more they lose. That injustice falls heaviest on women.