State Pension Age: Women

Patricia Gibson Excerpts

Tuesday 15th November 2016 Westminster Hall

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Nuttall, and I thank my hon. Friend the Member for Ross, Skye and Lochaber (Ian Blackford) for securing the debate.

I find myself speaking on the Women Against State Pension Inequality women for, I think, the fourth time. Frustratingly, despite three previous debates and the launch of a UK-wide petition, which attracted 2,534 signatures in my constituency and would have attracted more had there been more time; despite legal action from the WASPI women being seriously on the table due to what has been, in effect, the mis-selling of this group of women’s pensions; and after a Work and Pensions Committee report concluded that

“more could and should have been done”

to communicate the changes, we seem to be no further forward. Everyone is feeling the frustration.

[Alison McGovern (Wirral South) (Lab)]

The situation is worse than the hon. Lady described. Five and a half years ago I stood in this Chamber with my colleague, my hon. Friend the Member for Leeds West (Rachel Reeves)—our then Front-Bench spokesperson—and challenged the Government on this issue. We did that again the year after and again the year after that. The hon. Lady described recent action, but the situation is even worse: we have been telling the Government that this is wrong since 2011.

[Patricia Gibson]

I thank the hon. Lady for that intervention, and I go back to my original point: after all this time, all this activity, all the warnings, and all the stories of hardship, we are still no further forward. When will this Government wake up to the fact that pensions are not a benefit? The hon. Member for Fermanagh and South Tyrone (Tom Elliott) described them as a promise. They are not a promise; they are a social contract, which has been cruelly and thoughtlessly broken. It is time for the Government to step up and take responsibility for the way in which this matter has been mishandled over a number of years, and stop dragging this misery out for the women caught up in this injustice.

[Liz McInnes (Heywood and Middleton) (Lab)]

Will the hon. Lady give way?

[Patricia Gibson]

I will not—I am very conscious that other people want to speak, so I apologise to the hon. Lady.

Around 2.6 million women have been affected by these changes, and in Scotland, the number of women affected is 243,900. On behalf of the Scottish National party, Landman Economics analysed the costs and distributional impacts of potential changes to pension arrangements for women born in the 1950s who are losing out, in the context of the surplus in the national insurance fund, which is projected to stand at around £30 billion at the end of 2017-18 according to the Government’s own figures. With that surplus now forecast to be larger than it was before, the £7.9 billion that it will cost to give those women relief and a delay in the rise of their pension age is very much affordable.

The Landman report costed a return to the Pensions Act 1995 by immediately restoring the timetable in that Act, raising the pension age for women from 63 in March 2016 to 65 by April 2020, with no further increase to 66 until the mid-2020s. That is the second most expensive option, costing about £7.9 billion over five years. That cost is not trivial, but as we have heard today, it is not prohibitively expensive either in the context of other Government spending plans. It has the merit of completely eliminating the problem of an accelerated increase in pension ages for women born in the 1950s by returning to a timetable set out two decades ago, giving women much more time—necessary time—to adapt to the changes. It would then be possible to increase women’s pension age to 66 at some later point in the 2020s. That measure has the benefit of being progressive and reducing relative and absolute pensioner poverty.

The UK Government’s position, even after all the mistakes in the process have been laid bare for all to see, has been characterised by intransigence and wilful stubbornness. It is time to do what is right, fair and just. It is time for the Government to stop telling us that they have no choice. It is time to make the right choices, and it is time for justice for the WASPI women.