Transitional State Pension Arrangements for Women

Margaret Ferrier Excerpts

Monday 1st February 2016 Westminster Hall

[Margaret Ferrier (Rutherglen and Hamilton West) (SNP)]

Will the right hon. Lady give way?

[Caroline Flint]

I will not give way, because of the time. My constituent Margaret recognises that she is more fortunate than many. When she had been retired from teaching for a year, the teachers’ pension service wrote saying that it used the state pension age of 64—not the state pension age of 66—in its pensions calculation letter sent in July 2014, as changes in the state pension age were not in the public domain. That forecast letter stated that the state pension age was unlikely to change, but it did four months later. Seriously, if an established occupational pension scheme cannot advise clearly in July 2014, is it any wonder that so many women have found themselves unprepared for the changes to their financial and social wellbeing? Margaret has never received any information directly from DWP. She has requested all the information herself.

It is clear that mistakes have been made. Sometimes Governments get it wrong and sometimes Departments mess up. In those cases, they should try to put things right. I hope that after today’s debate, the Government will consider transitional arrangements to soften the blow. I also hope that lessons will be learned, across all levels of policy-making, about treating changes of this magnitude as a major project in which the people affected should be at the forefront of planning for change.

--- Later in debate ---

[Margaret Ferrier]

Given that many of the women affected by the changes in state pension age were in full-time employment from the age of 15 and younger, does the hon. Gentleman agree that they have more than contributed? Their full half-century of hard work should be taken more seriously by the Government.

[Scott Mann]

I absolutely agree. The ladies sitting in the Public Gallery and many others across the country have been affected by the issue and have made a full and active contribution to their national insurance contributions. It is right that their opinions are listened to, as they are today.

I absolutely understand why the Government wish to implement the changes quickly. They are working hard to eradicate the budget deficit and get us into a surplus. My concern is how the changes have been communicated and the affect that they have had on the 135,000 people who have signed the petition. Importantly, the women I have spoken to understand that the changes are being made for equalisation, but they ask for help with how they are being implemented. Some have not received letters from the DWP about the changes. Others have said that the changes have drastically changed their retirement plans. Some are set to lose tens of thousands of pounds.

The Work and Pensions Committee said in its interim report that the details sent to people affected were inadequate and confusing. It said that it had widespread concerns about women being unaware of increases in their state pension age dating back to 1995. I come here not as someone who is affected by the changes, but instead to fulfil my role as the MP for North Cornwall by speaking on behalf of those who are affected and are concerned, but who are unable to stand here today and make the case themselves. On behalf of my constituents, I simply urge the Government and the Minister to pause and consider another way of facilitating the changes that would be fairer for the taxpayer and the women in North Cornwall who are set to lose thousands of pounds as a result of something they have little control over. I further urge the Minister and his Department to consider the Select Committee’s findings and to contact all women affected, laying out how they will each be affected by the age changes, how they will benefit from the new single-tier pension, and on balance how they will be positively or negatively affected.

[Mr David Hanson in the Chair]