State Pension Age Equalisation

Nicholas Dakin Excerpts

Wednesday 2nd December 2015 Westminster Hall

[Barbara Keeley]

The hon. Gentleman was here in 2011, when some of the affected women lobbied their MPs about the proposals in the then Pensions Bill. Saga commented:

“Putting pensions on a sustainable long-term footing does not justify the sudden increase being imposed on one group of women at such short notice”—

that is exactly the point he raises—

“especially when the Government knows that these particular women are more vulnerable than men and have little or no private pension wealth. Also, many are already out of the labour market and have made careful plans for their future, which are now in disarray.”

Ironically, the then director general of Saga is now the Conservative Minister for Pensions in the other place. When I wrote to her on behalf of a constituent earlier this year she told me:

“I tried hard in 2011 but there is nothing more I can do I’m afraid. It is not in my power.”

[Nic Dakin (Scunthorpe) (Lab)]

I congratulate my hon. Friend on securing this important debate. At the time, many of us pointed out the iniquities of the proposals. I commend her on continuing to try hard and on not giving up as quickly as the noble Lady appears to have done.

[Barbara Keeley]

My hon. Friend spoke on Second Reading of the 2011 Pensions Bill, which I will address later.

Perhaps the Pensions Minister would benefit from understanding her powers. She was appointed after the general election, but her powers include the power to argue for changes needed to remedy injustice. I hope that Members on both sides of the House will focus on that injustice. The changes made in the 2011 Act were controversial, and hon. Members from all parties raised the particular impact that the changes would have on women born in the 1950s. As I have mentioned, the Secretary of State for Work and Pensions repeatedly referred to transitional arrangements on Second Reading, including, I think, in answer to a question asked by my hon. Friend the Member for Scunthorpe (Nic Dakin). The Secretary of State said:

“I recognise the need to implement the change fairly and manage the transition smoothly…I say to my colleagues that I am willing to work to get the transition right”.—[Official Report, 20 June 2011; Vol. 530, c. 50.]

The changes were not managed fairly, and the Secretary of State did not put transitional arrangements in place, which is why I applied for this debate to discuss the issues caused by the changes.

--- Later in debate ---

[Barbara Keeley]

Indeed. As we are living longer, so the number of carers is increasing. A Carers UK survey this year found that nearly a third of the female carers who responded and who were aged 60-plus said that they had retired early to care. The problem for women who fall into that group is compounded because, as Carers UK knows, retiring early in itself has a long-term impact on family finances. Of female carers aged 60-plus who retired early to care, 36% said that they were struggling to make ends meet, and of those struggling 40% were using their own savings to get by. Marian, a campaigner from Women Against State Pension Inequality—or WASPI; it is remarkable how that is abbreviated—contacted me yesterday. She has given up work at the age of 62 to care for her mother and brother, both of whom have dementia. Her only source of income is a small private pension of £2,500. Her husband will have to support her until she is 65. Marian tells me she only found out about her changed state pension age when she looked it up online.

[Nic Dakin]

Is it not ironic that people like Marian are saving the state a lot of expense through the work they are doing as carers, yet the state is not keeping to its deal with them, which it made a long while ago?

[Barbara Keeley]

That is absolutely true. The two years’ notice is clearly an issue when someone is deciding to retire to care for two people with dementia, particularly when looking after two people with dementia saves the state a great deal of money.

There are many such stories and examples. By not providing adequate notice of the change and by speeding up the process without putting in place any suitable transitional protection, the Government are failing to support the women born in the 1950s who are affected by their policies. Having promised much during debates, the only concession the Government made was to ensure that the additional increase in the state pension age could not be more than 18 months, but that small concession is of little comfort to those women who were not even informed of the change until very close to the age at which they expected to retire. They have worked hard and contributed to the system.

Throughout their lives, this generation of women has been disadvantaged in the workplace in terms of pay because of their gender. Even now, women in their 60s earn 14% less than men. Many of the women do not have private pensions. Until 1995, women who worked part-time were not allowed to join company pension schemes, and others did not qualify because they took time away from work owing to ill health or a caring role. Very many have no other sources of income, and they now find that once again they are being treated unfairly because of the way changes to the state pension have been enacted and because they are women.

I urge the Minister to look again at the issue and to look at ways of providing adequate transitional protection —the transitional protection that his ministerial colleagues repeatedly mentioned in the debates on the Pensions Act 2011.