Women’s State Pension Age: Ombudsman Report

Paul Maynard Excerpts

Thursday 16th May 2024 Commons Chamber

[Wendy Chamberlain]

I am grateful to my hon. Friend for her intervention, and I absolutely agree with her. We have had the report for some time, and I think the Government should be making a statement to say that they support it. It is quite clear that plenty of work has been done by both the APPG and the ombudsman to outline what a compensation scheme should look like.

My hon. Friend is right about the mental impact. I met a constituent of mine, Heather, several weeks ago. She is a single woman, so she does not have a partner’s or spouse’s income—that is the assumption made about women—to rely on. She has had to give up work as a teacher earlier than expected due to ill health, and feels that the injustice is compounded by the Government not having yet acknowledged the ombudsman’s report properly.

The DWP has had full notice of the investigation by the PHSO and its findings, and I would argue that they should therefore have had the opportunity to plan accordingly. With regard to the infected blood scandal, the Government have said that when the report is finally published on Monday, they will make a statement on what they will do very quickly thereafter. I feel, therefore, unmoved by the argument that they need more time to respond to the ombudsman’s report, when they have known for some time that it was coming. The first report on maladministration was published almost three years ago, so I just do not accept that the Government and the DWP have not had the time to consider the likely outcome of the findings. We knew that a recommendation for compensation was likely, so I would have expected the DWP to have started making plans for administering it.

While sitting in the Chamber, I have been notified by my researcher that I have had a response to a written parliamentary question, which states that the Department did not have sight of a draft copy of the PHSO’s report at the end of last year. My researcher has also confirmed with the WASPI campaign—I have met Angela Madden and others several times—who say that that is not the case, and that the Government did have sight of the draft report. I would be grateful for clarity from the Minister on that. I am happy to give way to him now—[Interruption] —or perhaps he can comment on that written response to the parliamentary question in his closing remarks. Is it correct that the Government did not have sight of the draft report at the end of last year?

[The Parliamentary Under-Secretary of State for Work and Pensions (Paul Maynard)]

On a point of order, Mr Deputy Speaker. Opposition Members are complaining about the fact that I dip my head in order to listen, and suggest that is somehow evidence of me not listening. I take exception to their criticism of my body position.

[Mr Deputy Speaker (Mr Nigel Evans)]

Your comments stand on the record.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Work and Pensions (Paul Maynard)]

It is a pleasure to serve under your chairmanship, Madam Deputy Speaker. I am grateful to the Backbench Business Committee for finding the time to host the debate. We have heard from Members on both sides of the House and from across the whole country, who have spoken both eloquently and passionately on behalf of their constituents. I know that many in the Public Gallery, as well as those listening remotely, who will be taking a close, scrutinising interest in this matter. I am always conscious that it is on behalf of those women that we are deliberating.

I pay tribute to those in my own constituency who have campaigned long and hard and met me down the years, even in recent weeks. I readily acknowledge the strength of feeling on both sides of the House. The Government are listening. What colleagues have had to say during the debate, which I have heard, will be taken fully into consideration.

In the oral statement made to the House on 25 March, the Secretary of State explained that the ombudsman’s report is complex, with the events that it considers spanning about 30 years. He committed to provide an

“update to the House once we have considered the report’s findings.”—[Official Report, 25 March 2024; Vol. 747, c. 1281.]

I understand the wide interest in this matter across the Chamber. We are all united in wanting a resolution. The ombudsman’s investigation has taken five years and produced a substantial report that requires careful and considered scrutiny. It is only right that we should give it that scrutiny. The Government are giving full and proper consideration to the ombudsman’s report, and that work is ongoing. The issues to be decided are significant and complex and require detailed understanding and deliberation.

I would like to remind the House of the Government’s strong track record of supporting pensioners. In 2024-25, we will spend more than £167 billion on benefits for pensioners. That is 6% of GDP and includes spending on the state pension, which is forecast to be about £138 billion in 2024-25. We are honouring the triple lock, having increased the basic and new state pensions by 8.5% in April. In 2024-25, the full yearly amount of the basic state pension will be £3,700 higher in cash terms than it was in 2010. We now have 200,000 fewer pensioners in absolute poverty after housing costs.

[Grahame Morris]

I am grateful to the Minister for sharing those figures. I am aware that people are a bit sceptical about statistics—someone said in the Select Committee the other day that 83.6% of all statistics were made up; I am not sure if that is true. Can I just advise the Minister of this? We have the poorest pensioners in Europe. Just 5.7% of our UK GDP is spent on state pensions and pensions benefits, compared with 16% in Italy, 13.9% in France, 11.9% in Spain, and an OECD average of 8.2%. His suggestion that our pensioners are generously provided for does not stand up to scrutiny.

[Paul Maynard]

I am grateful for that contribution. I heard the hon. Gentleman make those comments in his speech as well. I am trying to remember the precise figures, but I cannot, so I will write to him. More generally—this point is often made to me by pension experts—the international numbers are not directly comparable because each welfare system is entirely different, particularly in the public-private split in how pension systems are funded. To say that one percentage is generous while another percentage is not generous is not quite the point. I shall write to him none the less, because I think that he will find the fine print useful for his future contributions.

[Sir George Howarth]

The Minister said that the Government are to give the ombudsman’s report serious consideration before they decide what to do. How long does he think that process will take?

[Paul Maynard]

If I may, I will answer that in a moment, because I will now turn back to the report. In laying the report before Parliament, the ombudsman brought matters to the House’s attention, making it clear that Parliament has a role in responding to the report. The Government intend to engage fully and constructively with Parliament. I view this debate as a crucial part of that process.

I remind the House about what the ombudsman’s report says—and indeed does not say. The ombudsman has looked not at the decision to equalise the state pension age but rather at how that decision was communicated by the DWP. That is important to understand, as the motion calls on the Government to

“deliver prompt compensation to women born in the 1950s who had their State Pension age raised.”

Importantly, the ombudsman’s report hinted at the Department’s decisions over a narrow period between 2005 and 2007, and their effect on individual notifications. The ombudsman has not found that women have directly lost out financially as a result DWP actions. The report stated:

“We do not find that it”—

the DWP’s communication—

“resulted in them suffering direct financial loss.”

The final report does not say that all women born in the 1950s will have been adversely impacted, as many women were aware that the state pension age had changed. The stage 1 report found that between 1995 and 2004, the DWP’s communication of changes to the state pension age reflected the standards that the ombudsman would expect it to meet. That report also confirmed that accurate information about changes to the state pension age was publicly available in leaflets, through the DWP pension education campaigns and DWP agencies and on its website. However, when considering the Department’s actions between August 2005 and December 2007, the ombudsman came to the view that they resulted in 1950s-born women receiving individual notice later than they might have done had different decisions been made.

I welcome the wide-ranging contributions from Members on behalf of their constituents.

[Alan Brown]

The ombudsman clearly said that the DWP was guilty of maladministration during the period of 2005 to 2007. Does the Minister accept the finding that the DWP was guilty of maladministration, and should put its hands up to that?

[Paul Maynard]

I recognise that there will be an appetite from some Opposition Members for the Government to respond item by item to different parts of the ombudsman’s report, but the Government wish to respond in full when they have reached a conclusion from their deliberations. I will not go down the path that the hon. Gentleman seeks to take me along.

Some of the detailed commentary from Members today illustrates the interlocking considerations at play, depending on how each Member of Parliament responds to the report. The fact that so many have spoken today demonstrates the importance of this issue. Many parliamentary activities are worth noting to understand how they fit in. The Chair of the Work and Pensions Committee, the right hon. Member for East Ham (Sir Stephen Timms), mentioned the evidence session held last week and the recommendation that he has made to the Department, which I read after he mentioned it, so I have only just seen it.

Late last month I was able to meet the hon. Member for Salford and Eccles (Rebecca Long Bailey) and my hon. Friend the Member for Waveney (Peter Aldous), the chair and co-chair of the all-party parliamentary group, to discuss our initial views of the report and what steps they intended to pursue to take further evidence. I am looking forward to seeing what they have to say. I have noted the evidence given last week to the Select Committee. I also took careful note of what occurred in the Scottish Parliament. The many views expressed so far provide valuable input to the ongoing deliberations.

Let me come to the question from the hon. Member for North East Fife (Wendy Chamberlain) about the written answer she received. I will take my glasses off to read this, because the print is very small and not clear: in November 2023, alongside other interested parties, the DWP received a copy of the PHSO’s revised provisional views on injustice, which was stage two of the inquiry, and remedies, which were stage three, for comment. The DWP responded with its comments in January 2024. The Department was notified by the PHSO on 19 March that the final report would be received on 21 March 2024, at a meeting between the permanent secretary and the ombudsman. I note that the hon. Lady’s written question was about the final report as opposed to the preliminary report.

[Wendy Chamberlain]

It was about the draft report, but I am grateful for that clarity.

[Paul Maynard]

Members raised questions about changes to the state pension age. As I said, the ombudsman’s report is clear that it cannot consider the impact of changes in the law on state pension age. The changes are set out in primary legislation and, as such, were agreed by Parliament. The announcement in 1993 of the equalisation of the state pension age addressed a long-standing inequality between men and women. The changes were also about maintaining the right balance between the sustainability of the state pension, fairness between generations and ensuring a dignified retirement.

Changes to the state pension age were made in a series of Acts by successive Governments from 1995 onwards, following public consultations and extensive debates in both Houses of Parliament. From the 1940s until April 2010, the state pension age was 60 for women and 65 for men. The decision to equalise the state pension age for men and women dates back to 1995. It was right to address a long-standing inequality between men’s and women’s state pension age. The report of the Pensions Commission in 2005 recommended that the state pension age should increase in a staged way to 68 in the three decades following the completion of equalisation in 2020. A broad consensus on that was achieved largely due to the commission’s evidence base, which showed that state pension age should follow increases in life expectancy to help ensure the affordability and sustainability of the state pension.

Legislation passed in 2007 introduced a series of increases, starting with a state pension age of 66 between 2024 and 2026, and ending with an increase to 68 between 2044 and 2046. As has been observed, the Pensions Act 2011 accelerated the equalisation of women’s state pension age by 18 months and brought forward the increase in men’s and women’s state pension age to 66 by five and a half years, relative to the previous timetables. The changes in the 2011 Act occurred following a public call for evidence and extensive debates in Parliament. During the passage of the Act, Parliament legislated for a concession worth £1.1 billion. The concession reduced the proposed increase in state pension age for more than 450,000 men and women, and meant that no woman saw their state pension age change by more than 18 months relative to the timetable set by the Pensions Act 1995.

[Ian Blackford]

Will the Minister give way?

[Paul Maynard]

Sorry, I won’t.

During the course of the ombudsman’s investigation, state pension age changes were considered by the courts. In 2019 and 2020, the High Court and Court of Appeal respectively found no fault with the actions of DWP. The courts made clear that under successive Governments dating back to 1995, the action taken was entirely lawful and did not discriminate on any grounds. During those proceedings, the Court of Appeal held that the High Court was entitled to conclude as a fact that there had been

“adequate and reasonable notification given by the publicity campaigns implemented by the Department over a number of years”.

We recognise the importance of providing information in good time about the state pension age to help individuals to plan for their retirement. Since 1995, the Government have used a range of methods to inform people about the increases in state pension age, including the provision of detailed and personalised information. The methods have included leaflets explaining the legislative changes, pensions education campaigns, press advertising and direct mailing exercises to millions of people. People have been able to request personalised state pension information since the 1980s.

[John McDonnell]

We do not know the timing of the general election—possibly November, but maybe later—but it is likely that we will have only about 10 sitting weeks between now and a general election. Can I impress on the Minister to take back to his fellow Ministers that we need the proposals rapidly in those 10 weeks, and certainly before recess, if we are to get a viable scheme through Parliament?

[Paul Maynard]

I am happy to confirm that I will take that message back. I have heard it clearly today. I understand the points about the Work and Pensions Committee’s findings, too. The right hon. Gentleman will have heard the Secretary of State—and me, in oral questions on Monday—say that we wish to have no undue delay. That remains the case. I recognise that people are frustrated by that phrase, but it is an accurate phrase. We do not wish undue delay. As I keep saying, it is a complex issue. It is not just a matter of ticking a box. It needs to be gotten right, and we understand all the ramifications and options that are open to us.

Between April 2000 and February 2021, the DWP provided more than 41.2 million personalised state pension statements, and it continues to do so. As well as issuing letters to the 6.9 million women and men born in the 1950s notifying them of the state pension age increase, the DWP sent around 17.8 million automatic state pension forecasts between 2003 and 2006, which included a leaflet explaining that the state pension age for women was increasing.

As I have outlined, the Government recognise the importance of this issue. The ombudsman report has been laid before Parliament, and we have been invited to take a view and engage with this issue. Today is one part of that. We will listen to the views of the House with great seriousness. The report is currently being given active and extensive consideration within the Department, by me and by the Secretary of State. We will seek to provide a further update without, as I say, undue delay, and I hope to give the issue the airing that it deserves as soon as that is practically possible.