Transitional State Pension Arrangements for Women

Mark Durkan Excerpts

Wednesday 24th February 2016 Commons Chamber

[Mr Vara]

I am grateful to my hon. Friend for his comments. If I am allowed to make some progress, I will talk about transitional arrangements and what we are doing.

[Mark Durkan (Foyle) (SDLP)]

Will the Minister give way?

[Mr Vara]

I will give way later, but I wish to make some progress.

There has been much debate about this issue, and we have had several debates about it in recent weeks. It comes down to two fundamental issues. First, there have been calls to undo the 2011 pension changes. The cost of that would be more than £30 billion. Secondly, there are calls by some to go even further and unravel the 1995 pension reforms.

--- Later in debate ---

[Mark Durkan (Foyle) (SDLP)]

In common with others, I regret that much of the debate from the Dispatch Box was focused on fixing the blame rather than fixing the problem, but at least the hon. Member for Pontypridd (Owen Smith) put forward a six-pack of options, which he rightly asked the Government to consider. Let us remember that the salient point about the motion is that it

“calls on the Government to bring forward proposals for transitional arrangements for women adversely affected by the acceleration of the increase in the state pension age.”

That is logical, reasonable and compelling, which is why the hon. Member for East Worthing and Shoreham (Tim Loughton) is prepared to support it. I ask some of his hon. Friends to join him in supporting it, not least those who valiantly fought over Equitable Life and called on the taxpayer to restore Equitable Life members to some position of equivalence. If they were prepared to fight for the Equitable Members Action Group and were indignant over Equitable Life, they should not be indifferent to the WASPI women and what they face. We should respond to them with justice.

It is not just a matter of a breach of trust and a breach of contract, because there is also the question of moral hazard. If Parliament says, “We can be quite capricious with the state pension”, we send out a signal to all the private pension providers that they can do what they want, that politicians will be in no place to reprimand them and that the regulator will not be able to interfere. We send out a very dangerous signal, too, to those younger people who were encouraged to have confidence and show responsibility in their pension planning. We send out a signal to them that what happened to their mothers shows that even when provision for pensions is made, people do not get what they thought they were going to get. It says that the pensions rules can be changed, so younger people will ask why bother with them—just see what they get when they get there.

We should not offer the mixture of conceit and deceit that we heard from some Conservative Members. We were told by the hon. Member for Bexhill and Battle (Huw Merriman) that the matter is settled and therefore cannot be touched. When was it settled? It was settled by Parliament in 2011, and he argued that it was the settled will of Parliament, which cannot be touched. These are the same people who tell us about parliamentary sovereignty and how one Parliament cannot bind another. They tell us that they want to stand up to the EU all over the place, but they are of course hiding behind a completely false explanation of EU rules and EU requirements in defence of this injustice.

This is an intentional injustice that has been visited on these women. It is not just, as the hon. Member for Sherwood (Mark Spencer) tried to tell us, that a line has to be drawn somewhere. These are not just haphazard victims of a drive-by cut in the name of austerity; they have been carefully selected and calculated as the victims. Why? These women have been used to inequality and injustice all their lives; they have been on the receiving end of inequality in respect of gender pay gaps and denial of access to second pensions at a time when their male colleagues were given access to them. The aim now seems to be, “Let’s give them one more twist of injustice in the name of equalisation as they come to the end of their working lives.” That is an absolutely travesty; it offers people stone for bread. This Parliament should be doing better than that.

As for the “settled will”, legislation that is currently going through Parliament will change legislation that was passed in the last Parliament. The Financial Services Act 2012 and the Financial Services (Banking Reform) Act 2013 were passed in the last Parliament, and they are being changed by legislation that is going through the House now. The Enterprise Bill is changing legislation that was passed in the last Parliament. The Trade Union Bill is changing legislation that was passed in the last Parliament. Yesterday we debated the Welfare Reform and Work Bill, which, of course, is also changing legislation that was passed in the last Parliament. The Government can change legislation to introduce cuts, but they cannot change legislation to bring justice to people.

We should compare the present position with the position in 2011. What we have now are pension freedoms, and a tax windfall for the Treasury. The Government should bear in mind the new fiscal ambit that comes with those pension freedoms, and use it to introduce pension justice—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. I call the shadow Minister.