Construction Workers: Pension Age

Matt Rodda Excerpts

Wednesday 12th July 2023 Westminster Hall

[Matt Rodda (Reading East) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Davies. I congratulate the hon. Member for Midlothian (Owen Thompson) on securing today’s debate, and I thank him for his work in this important policy area. I also thank colleagues from across the House who have taken part in the debate. I will address a number of issues, including the wellbeing of construction workers, how they can take their pension early in some cases, the importance of support for people looking for work and, indeed, the state pension age.

I turn first to the wellbeing of construction workers and those in similar industries. I think it is fair to say—I hope we all agree—that construction is clearly a very important industry. Despite improvements to health and safety, there are still significant risks to workers in the industry, and I believe that it is important for the Government to take action to protect workers and to reduce risks at work. As has been noted by the shadow Secretary of State for the future of work, my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner), we need a new deal for working people, and an incoming Labour Government will create the right and safe conditions for proper competition and growth.

I am pleased to support the need for safety, both as a shadow Minister and as a constituency MP. There is much more to do to improve safety at work, and further action should be taken in this important area. For example, I believe that there needs to be a review of health and safety at work to make sure that outdated legislation is fit for purpose—something that I think other Members may have implied but that was not commented on. I also believe that those who are not able to work should receive support. There needs to be welfare reform to help support more people to make the breakthrough into sustained employment and, indeed, to progress in work. Without action, we risk condemning a generation to a life on the margins.

Today, unemployment is up, with 1.3 million men and women unemployed. The number of people out of work due to sickness has risen to a record high of 2.5 million, and 760,000 young people are not in education, employment or training—all at a time when we have millions of vacancies in the labour market. That is why reform is so urgent. After 13 years of Conservative Governments, too many people are trapped on welfare, sadly going nowhere. It is an unforgivable waste of their potential. We need reform, and we need new thinking.

I want to talk about the state pension and to briefly recap on some of the changes to state pension age, because there has obviously been a lengthy discussion of aspects of the policy. From the 1940s until April 2010, the state pension age was 60 for women and 65 for men. Legislation to increase the state pension age was introduced in stages, with the Pensions Act 1995 including provisions to increase the state pension age for women aged between 60 and 65 in a series of stages between April 2010 and 2020, to bring it into line with the state pension age for men. The Pensions Act 2007 made provision to increase the SPA from 65 to 68 in stages between 2024 and 2046, and the Pensions Act 2011 brought forward the completion of the increase in the women’s SPA to 65 to November 2018.

As a result of those Acts, the current timetable is for the SPA to rise to 67 between 2026 and 2028, and to 68 between 2044 and 2046. The announcement that the Government are not going ahead with accelerating the state pension age rise is welcome. It is the right decision, but it is the clearest admission yet that a rising tide of poverty is dragging down life expectancy for so many. Life expectancy appears to be stalling and even going backwards in some of our poorest communities, as was hinted at by hon. Members who spoke earlier. I am afraid that that is a damning indictment of 13 years of failure under the current Government and, indeed, the coalition Government. I hope the Minister will acknowledge that later.

The hon. Member for Midlothian has called for the state pension to be available early for some construction workers, and I appreciate that he spoke about that today. As I said, I congratulate him on securing the debate. However, I believe that the approach he suggests could lead to a series of unintended problems for the Department for Work and Pensions in administering the state pension. It is important to remember that other help is available, and I want to see the help and support improved. I would also like to make a broader point to him: it is very important that our pension system offers security and predictability for people of working age who are saving for a pension. I am grateful to him for securing today’s debate, and I look forward to hearing the Minister’s response to the matters raised.