Pension Equality for Women

Peter Aldous Excerpts

Thursday 14th December 2017 Commons Chamber

[Peter Aldous (Waveney) (Con)]

Owing to my cold, I will not be able to speak quite as passionately and as loudly as the hon. Member for Swansea East (Carolyn Harris). I congratulate the hon. Member for Easington (Grahame Morris) on securing this debate. He has played an important role in continuing to highlight the very difficult situation in which many women born on or after 6 April 1950 find themselves as a result of the changes to the state pension age in the 1995 and 2011 Acts. This unfairness needs to be addressed and we need to get on with finding a solution.

I fully support the case for equalising the retirement age and the need to raise the pension age. The latter is required on the grounds of increased life expectancy and financial sustainability. However, such changes have a profound impact on people and the lives they live. Such changes need to be properly researched, to be subject to full consultation and then to be introduced in a fully transparent way. Those steps have not been taken in this instance. Even though the Pensions Act providing for the pension age for women to increase from 60 to 65 was enacted in 1995, government waited 14 years, until April 2009, before it began writing individually to the women affected. That lack of notification meant they had no time to make alternative arrangements for their retirement.

At the time of the 2011 Act, it was clear that there was a problem, and women were raising their concerns with me. As a result, the Government did make changes to limit the impact on those most affected. With hindsight, it is clear that the full scale of the problem was not recognised and that legislation should have been preceded by a full impact assessment.

The WASPI briefing for this debate highlights the unique barriers many women born in the 1950s face in mitigating this sudden change in their circumstances: many have no other source of income, and until the 1990s many women were not allowed to join company pension schemes; many women face difficulties in returning to the workforce and may be suffering from long-term health problems; many, on the expectation of an earlier retirement, have taken on caring responsibilities; and for some, divorce settlements were calculated on the assumption that the state pension was going to be received earlier. Baroness Altmann, in her February 2016 article, provides a compelling case as to why this matter needs to be revisited.

The message from the Waveney constituency and from Suffolk is that this situation must be addressed. When many of us presented petitions in this Chamber last autumn, I was in second place, behind the hon. Member for Kingston upon Hull North (Diana Johnson), in terms of the number of people who had signed up —2,249 Waveney constituents had done so. Last year, Conservative-run Waveney District Council unanimously endorsed this petition, and last week Conservative-run Suffolk County Council unanimously backed the campaign for equality of pension provision for women. In Suffolk, there has been a tradition of women going out to work, whether in factories, agriculture, fishing, food processing or clerical posts. This was often part-time work, often on low salaries. These changes are disproportionately affecting a lot of them and their families.

[Sandy Martin (Ipswich) (Lab)]

I hope the hon. Gentleman and you, Madam Deputy Speaker, will forgive me for intervening. I just wanted to say that the hon. Gentleman has my full support, and that the reason I am not speaking in this debate is simply that so many other people are down to speak. The whole of Suffolk is behind him on this one.

[Peter Aldous]

I am grateful for that endorsement from Suffolk.

I acknowledge the challenges the Government face in finding a way forward that is affordable and that complies with equalities legislation. However, it is clear that a particular group of people have been unfairly penalised. I thus support the motion, and I urge the Government to find a way forward that is fair, fully considered and affordable.

--- Later in debate ---

[Tim Loughton (East Worthing and Shoreham) (Con)]

Another day, another debate on pensions for women born in the 1950s. We have now had many more debates on this subject than Elizabeth Taylor had husbands, and much like her seventh husband, I find it difficult to know what new to bring to the bedroom, if not the debate today.

This situation is not going to go away. I am proud to be the co-chair of the all-party group, and I am pleased to have co-sponsored the debate here today. WASPI is not just those groups calling themselves WASPI; it is hundreds of thousands and millions of women who find themselves in this position. I welcome the work that the all-party group is doing and the survey that we have sent out. I hope that we will get some concrete data back, and I will certainly support the Bill when it comes to the House in April.

There are three main problems. First, no one is complaining about equalising the pension age; it is the process and mechanism of doing so that is at fault. The impact on a specific group of women—more than 3 million now—is disproportionate. It is calculated that 33% of men will retire with just the state pension to rely on, but 53% of women will do so. The issue is much more important to women.

The second problem is the arbitrary cut-off date that many women have suffered retrospectively. The pension age of a woman born on 6 May 1953 will now be November 2016—a loss of some £2,000 on what she might originally have expected. The pension age of someone born a year later on 6 May 1954 will now be January 2020, a loss of £20,000. That is a huge difference for the sake of 12 months.

[Peter Aldous]

My hon. Friend is making his case very well. Does he agree that, before the 2011 changes were introduced, some sort of analysis should have been done to address the problems he identifies?

[Tim Loughton]

That is right, because there is a cliff edge effect. I am afraid that we hear time and again from Ministers that £1 billion transition money was given in 2011, but of course half that money went to men to make up for their transition differences. Women did not benefit disproportionately from that additional money, ungenerous though it was.

The third problem is the lack of notice. Many women, even if they got the notice, were not in a position to make preparations and alter their lifestyle to enable them to survive through their 60s. Many of them have caring responsibilities. They have depleted savings. They have disabilities.

Of course, there are other disadvantages that women suffered. Women were, and still are, paid less than men. Women’s pension savings are typically 66% less than men’s. Back in the 1970s—the decade when most 1950s-born women started work—women were often ineligible to join their employer’s pension scheme, and they were often passed over for promotion in favour of male colleagues. That is the legacy that these women bring with them now. There are other disadvantages. The 2001 changes to the widow’s pension mean that those widowed prior to their state pension age no longer receive a full widow’s pension until they reach their full SPA, which has now, of course, been delayed.

We need to find a solution. The Government need to listen, get round a table and discuss this. There are many different transition arrangements we could bring in. Scaremongering that it is going to cost tens of billions of pounds is really not helpful. We can do things around bus passes and the winter fuel allowance that would have a meaningful effect for many women, but we need to help those who are in most need and who are suffering now.

It is important to reiterate that this is not a benefit; it is an entitlement. Some of these women could have paid national insurance contributions—I appreciate that that is not directly linked to a pension—for as long as 50 years by the time they retire. It is reasonable for them to expect that they would start to benefit at the time they contracted to when they started working and paying their employment dues to the Treasury. I also echo the points made by my co-chair, the hon. Member for Swansea East (Carolyn Harris), about women overseas.

We have a duty of care to these women—a specific set of women who should not be affected in the future because we have changed the law. That duty of care needs to be honoured before more women suffer or, worse, come to the end of their lives. As my co-chair said, they are feeling cheated, disrespected and angry. Last year, the Prime Minister said she wanted a country

“built on…fairness…where everyone plays by the same rules”.

Let us start by demonstrating that and by righting this injustice now.