State Pension: Women born in the 1950s

Peter Bottomley Excerpts

Thursday 22nd November 2018 Westminster Hall

[Mr Peter Bone (in the Chair)]

Before we begin this important debate, it might help Members to know that the Prime Minister will make a statement in the House at 3 o’clock. If Members wish to speak in this debate they must return for the wind-ups, which will start at approximately 4 o’clock. Nine Back Benchers have indicated that they wish to speak. I do not intend to impose a time limit.

[Sir Peter Bottomley (Worthing West) (Con)]

On a point of order, Mr Bone. I am sorry to interrupt proceedings before they have really started. Thank you for your guidance, although I am not one of the Members who will speak; I am unable to because of other engagements. Could the debate be relayed to another room, so that the many people who cannot get into the Strangers Gallery can listen to it? They have come here for that, and are currently excluded. It would be kind to let them hear it.

[Mr Peter Bone (in the Chair)]

Thank you for that important point of order. I entirely understand the frustration. I do not schedule debates. The debate could have been scheduled in the House where there would have been enough room for everyone. However, rather than postponing or stopping it, I think we should continue. It may help people to know that when debates happen in Westminster Hall a similar one often happens in the House at a later date. We should crack on with today’s important debate.

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[Patricia Gibson]

I agree with everything the hon. Gentleman says. One of the most frustrating things that WASPI women have found in their quest for justice is not that they are not getting what they are asking for—bad as that is—but the wall of silence with which they have been met. It is as though they do not exist. That is not acceptable.

[Sir Peter Bottomley]

There have been too many occasions on which Pensions Ministers have said how many years women will get a pension for—once they get it. Can we make it plain that the question is what happens in the years before they get the state pension?

[Patricia Gibson]

The Scottish National party commissioned independent research into how this could be resolved, but the Government rejected it. As far as I can see, they have rejected every other potential solution proposed from every quarter. I would like the Minister to tell us how he thinks the matter can be progressed, because doing nothing is not a sustainable option—certainly not for the WASPI women.

--- Later in debate ---

[Alex Burghart]

Presenting the case in the way that the hon. Gentleman does is slightly misrepresentative, because the cost of not bailing out the banks would have been extraordinarily high and would have seen businesses all over the country go bankrupt and people go out of work. It would have damaged their lives and would have become a cost to the state. I simply cannot see things in the binary way that he sets them out.

In 1942, William Beveridge wrote about the purpose of his pensions proposals, saying that

“giving to each individual an incentive to continue at work so long as he can, in place of retiring, is a necessary attempt to lighten the burden that will otherwise fall on the British community, through the large and growing proportion of people at the higher ages”.

Under the last Labour Government, it was acknowledged that we must not reach a position where women would be expected to spend 40% of their adult lives in retirement—that proportion is due to increase continually. No Government could have sustained that without dramatically curtailing services for younger people. On top of those demographic concerns, the Pensions Act 2011 had to deal with the circumstances that were dictated by the great financial crisis of 2008.

[Sir Peter Bottomley]

My hon. Friend talks about the introduction in 1908 of the state pension age of 70, but he could have told us that it was reduced to 65 in 1925, and that the inequality of the earlier retirement age for women was introduced, I think, in 1940. I am not arguing with him; I am trying just to set the scene.

[Alex Burghart]

I am grateful for my hon. Friend’s scene setting. Forgive me if I skipped a sentence earlier— I should have said that the retirement age of 65 was introduced in the Contributory Pensions Act 1925, so I am grateful to have been put right.

The Pensions Act 2011 dealt with the circumstances of 2008 and was introduced in the context of the emergency Budget brought forward by the then Chancellor in 2010, which offered the triple lock. To remind Members, that guarantees, each and every year, a rise in the basic state pension in line with earnings, prices or a 2.5% increase, whichever is the greatest. That policy meant that between April 2010 and April 2016, the value of the state pension rose by more than 22%, compared with growth in earnings of about 7.5% and growth in prices of 12%. Pensioners saw their incomes rise at almost double the pace of the average worker in that period. In 2018-19, the state pension is more than £1,450 a year higher than it was in 2010.

We know that the triple lock will be in place for the duration of this Parliament. For people reaching state pension age after April 2016, a new pension has been introduced at a single flat rate of £159.55 a week, which also has been triple-locked. All the women affected by the 2011 state pension age changes will draw their state pension under the new system.