Women’s State Pension Age: Ombudsman Report

Margaret Greenwood Excerpts

Thursday 16th May 2024 Commons Chamber

[Margaret Greenwood (Wirral West) (Lab)]

I pay tribute to all the WASPI women and others campaigning on this issue in Wirral West and across the UK, and those who are in the Gallery this afternoon. I stand in solidarity with them—I myself am a 1950s-born woman. I pay tribute to all who have sadly passed away, too.

I believe it is important to consider the broader pensions landscape, and the discriminatory and quite frankly sexist nature of provision that has adversely affected 1950s-born women. For example, rules that required a fixed number of qualifying years to be eligible for a pension have disproportionately adversely affected women. In 1973, the right to a deferred pension was introduced for those who left service on or after 6 April 1975, provided that they were over 25 years old and had completed at least five years’ service. One WASPI campaigner told me that she had worked for the Army for four years and then left after she had had her baby. She received no pension for those years, which is grotesquely unfair. That five-year qualifying period, which clearly discriminated against women, was reduced to two years from April 1988, and so it remains for the Army and civil service today. Again, I believe that this is discriminatory, and I ask the Minister to look into it.

Part-time workers have been similarly adversely affected by the design of pension schemes. There is insufficient time to provide detail today; however, women have clearly been disproportionately affected by that, too, as they are by the current earnings threshold of £10,000 per year for auto-enrolment. Again, I ask the Minister to look at addressing that discriminatory element of what is otherwise a very important policy that affects large numbers of women and men on low pay.

Women born in the 1950s have already been adversely affected by pensions policy. The pensions gender gap is still high: analysis by the DWP published in 2023 put that gap at 35%, meaning that women have 35% less private pension wealth than men at age 55, the minimum age at which most people can start to take their pension. Women have less state pension, too: analysis by the Institute for Fiscal Studies last year showed that women born in the early 1950s receive around 5% less state pension income than men.

The reasons included having spent less time in paid employment compared with women born in later periods, and the way that the rules for entitlement to the state pension before the introduction of the new state pension in 2016 created a significant gap between pensions for men and women. For example, before 1978, married women could opt to pay a married women’s stamp, meaning that they paid lower national insurance contributions and then received a lower state pension. It is scandalous, too, that many of the women who paid that married women’s stamp did not receive all the pension that they should have been entitled to, due to the complex rules and computer errors by the DWP.

Then, of course, the gender pay gap means that women are paying on average less into their occupational pensions. All those things are still affecting women today, so it is in that context that I ask the Minister to act swiftly in relation to the parliamentary and health service ombudsman’s report on women’s state pension age. The WASPI campaign has shone a light on how the changes affected women: many 1950s-born women found out about the changes to their state pension age at a time that was too late for them to alter their retirement plans. Others have said that they had no idea that they would have to wait longer to receive their state pension. As a result, many women have suffered financial hardship and emotional distress.

A survey of around 8,000 WASPI women carried out in December of last year found that in the previous six months, 55% of WASPI women had seen their economic position get worse, 49% had struggled to pay essential bills, and shockingly, 25% had struggled to buy food. As we have heard from Members right across this House, our constituents have spoken about how they have been personally affected. One woman in Wirral West told me that she had struggled to feed herself and had had to sell her home as a result of how she was affected. Another constituent wrote to me recently to say that she feels robbed of her future, and still feels that she is being ignored. It is insulting to those women that the Minister has barely acknowledged the clear maladministration that the ombudsman says occurred. Can he tell us today when his Department will acknowledge that maladministration, and will he apologise for it?

Because of “significant concerns” that the ombudsman has

“that DWP will fail to remedy the injustice”,

it has taken the “rare decision” to bring matters to Parliament’s attention, and specifically to ask Parliament

“to intervene and identify a mechanism for providing appropriate remedy”.

The ombudsman’s report sets out what that remedy might look like. It also says that it is

“open to DWP to forestall this process”

by acting on what the ombudsman says to Parliament. Will the Minister take this opportunity to do just that—to look carefully at what the ombudsman has said, and come forward with fair and fast compensation for the women affected? Jane Cowley, the WASPI campaign manager, said last week at a Work and Pensions Select Committee oral evidence hearing that

“We have attempted to meet with the Minister throughout our campaign but unfortunately those requests have never been accepted.”

This is incredibly disappointing. That campaign is acting on behalf of 3.5 million women adversely affected—it is utterly astonishing that the Minister should show them such little respect.

Time is of the essence for the Government to put things right. According to the WASPI campaign group, by this weekend, 280,000 WASPI women will have died since their fight for justice began. To put it another way, as has already been said in this House, one woman dies every 13 minutes. The Government talk about supporting all pensioners to have a dignified retirement, but can the Minister honestly stand at the Dispatch Box and say that his Government are treating these WASPI women with the dignity and respect they deserve? Last week, at the Select Committee’s oral evidence hearing, Angela Madden, the chair of the WASPI campaign, expressed frustration that the DWP

“have never accepted that they have done anything wrong”.

When will the Government remedy the injustice that so many 1950s-born women have faced? Ministers must apologise to those women who have suffered as a result of Government failings, and must bring forward fair and fast compensation as a matter of urgency.

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak today on behalf of the WASPI women. Every right hon. and hon. Member who has spoken in this debate has done so with a heartfelt desire on behalf of their constituents, and I wish to do the same. A lot has been said, but I want to offer a Northern Ireland perspective in the debate. It unites the voices of those in this Chamber when we speak on behalf of all our constituents within the United Kingdom of Great Britain and Northern Ireland.

In Northern Ireland there are some 77,000 WASPI women—ladies who deserve to have their pension but have been denied it. Tragically, many have passed away. In my Strangford constituency we have approximately 5,000 who should qualify as WASPI women. Although I am the only Northern Ireland MP in the Chamber now, I know that many of my colleagues from other parties have spoken on this issue. I had a well-attended debate on 12 March; it was unfortunate that in that debate Members only had about three minutes. In today’s debate at least Members have had at least 10 or perhaps even 15 minutes, depending on when they came in. I asked a question on the same issue on 25 March in this Chamber and again on 2 May.

This debate is vital, but—and I say this almost as a question—is it necessary? Hon. Members will say, “What do you mean, is it necessary? That’s almost a contradiction.” But it is not. The debate is not necessary: the problem is crystal clear and undisputed, at least by every person who has spoken. That being the case, we should recognise this and grant the compensation in a timely manner. That is what the debate is about. That is what we are asking for, and everyone from all political parties is united on that. We have the ombudsman’s report. Why, then, do we need to debate this issue again today, if the problem and the solution are clear and expected? That is the way I see it.

I congratulate the hon. Member for North Ayrshire and Arran (Patricia Gibson), as I often do, on setting the scene; I know this issue has been a passion of hers in this House. I also congratulate the hon. Member for Kilmarnock and Loudoun (Alan Brown), who will sum up for the SNP at the end of the debate, on his Bill, which I have signed, along with others. The Government could grasp that Bill, push it through and have it all done by July. I also did not know until this debate, when the right hon. Member for Hayes and Harlington (John McDonnell) spoke, that he and the right hon. Member for Islington North (Jeremy Corbyn), who is not in his place, had a Bill or a process ready to bring forward. Would it be onerous or unrighteous of me to say that perhaps that is something that could be used as a text to move it forward? Right hon. and hon. Members have brought lots of ideas forward.

I say this with great respect to the Minister, who is an honest man and a gentleman, and who does his job well: the Government are dragging their heels. As we have said on multiple occasions, each day that passes means that another lady has been wronged. My constituents and others are missing out not simply on justice—that is reason enough—but on the quality of life that should have been theirs. Parties across the Chamber have come together to reiterate that, but the power for change—and the reason change is not coming forward—lies with the Government. That is the way I see it.

On the many occasions I have spoken about the WASPI ladies, I have given the example of a constituent of mine who was a school cleaner—everybody’s constituencies had school cleaners like her. That lady cleaned the school toilets until she was 60, with arthritis and pain. She spent most of her time on her knees. It is always good to spend time on your knees, as long as it is in prayer, but that lady spent her time on her knees on a floor with cold tiles, and she ended up with arthritis and pains. That is the issue. She focused on the end date when she could stop putting herself in pain and start enjoying her retirement without having to worry about turning her heating on because she could rely on her pension. That lady never had a sick day in 30 years—boy, what a record! She turned up every day for 30 years to clean the toilets at the school. She deserves credit for that.

We know that lady’s generation well. There is no shame in it, but she felt shame about taking benefits, and she worked hard for the entitlement to a well-earned pension, which she thought she was getting. That pension was about nine months or a year ahead of her, when suddenly it turned out to be six years ahead of her. What—really? There needs to be action. That was done to her without so much as a by your leave or a financial plan. I hear people saying, “Well, they knew about the plan,” but many of my WASPI women did not know at all. I cannot remember which Member said that 60% of people did not know about their financial options. My constituent’s option was to continue working on her knees, scrubbing, with tears in her eyes and in pain, which meant that she had to apply for sick pay.

This Government did that to her—and I say that with respect to the Minister. That is the reason why it happened. The ombudsman said that it was not right to do that to my constituent, and that we should compensate that honourable lady and the 5,000 other WASPI women in my constituency, as well as all those across this great United Kingdom. We are no further forward in giving her that entitlement. Meanwhile, those extra years of hard labour have taken their toll physically and emotionally. I genuinely have no words to say to that lady other than: “I am sorry. I continually ask for compensation for you and the others. I am sorry that the Government got it wrong. And I am sorry that it still is not rectified.”

I do not want to heap coals of fire upon the shoulders or the head of the Minister, but the responsibility for this lies with the Government. My words to the Government are clear and direct, and I have plenty of them, but they can all be summed up in a few words: do the right thing, and do it now. That is my request. The Government know their obligation, understand their duty, and accept the rationale behind that, so all we need now is the action to make this happen.

We have seen how quickly compensation can be sorted, so why are we in this position where we are no further forward and doing the right thing seems not to be a priority? It needs to be a priority—it needs to be a priority today, following this debate. It needs to be a priority before the summer recess, whenever that comes. That is the target date that I am asking the Minister to aim for, because we need to give hope to our constituents and those WASPI women who have resolutely, courageously, and in many cases physically, withstood the test of time.

I believe that compensation should be granted in the form of a lump sum to help pay off any outstanding loans or debts, and there should then be an enhanced payment for a clear and set period of time. We have heard stories today of people who made their plans on the grounds of the pension plan that they had, only to find out that they had been disempowered, and all the plans they had made had to be scrapped. They lost their houses, their jobs and their health. What are we doing to help those people?

[Margaret Greenwood]

The hon. Gentleman is making a sensitive and excellent speech. Does he agree that this is not only about the loss of a pension from the age of 60, the fact that people have not been able to plan and so forth? For many women, their occupational pension will have been tied to the date of their retirement or their state pension—it varies a lot, depending on what the pension scheme is. Some women have lost thousands upon thousands of pounds as a result of this decision.

[Jim Shannon]

I thank the hon. Lady for that intervention. The occupational pension is another factor; it is incorporated in the plan that these people have made for their future. It is wonderful how you make a plan for the future and then the Government scupper it on you! All of a sudden, these ladies have found themselves in difficult circumstances, so I believe it is necessary to have a compensation scheme in place to help all of those ladies.

I will conclude with one more comment, ever mindful of the time limit that we all indicated we would keep to. I understand the magnitude of such a scheme, but we were able to get support quickly to households across the UK for cost of living and energy payments—something that I commend the Government on. That can be done on many occasions; we just need the commitment to make it happen. I know that the Government have the ability and the capacity to roll out all these schemes, so along with almost every other colleague in this House today, I sincerely ask that we prioritise finding a compensation formula and rolling it out. These women, our constituents—brave, courageous women—deserve no less, and we must ensure that we give them no less.