State Pension Age: Women

Rachel Maclean Excerpts

Wednesday 29th November 2017 Commons Chamber

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

When people ask me what it is like at Westminster, I often observe that I live in a parallel universe from the Tory party—I am sure its Members feel the same about me. We all inhabit a political bubble, but let me recall some of the concerns I have heard from Tories recently: whether Big Ben is going to bong, whether Clerks in the House are allowed to wear wigs, whether it is credible for MPs to ask questions in the Chamber without wearing a tie—these are some of the things that have concerned Tories recently. I have also heard them say that when they visit jobcentres people tell them, “It’s great being on universal credit. When I’m on universal credit, I find work”. They do not see the irony that they are meeting these people in the jobcentre. The Under-Secretary of State for Work and Pensions, the hon. Member for Hexham (Guy Opperman), said that WASPI women should be able to get apprenticeships, and the Chancellor recently said that there were no unemployed people. They have also said that the majority of people knew about the changes to the pension age. They live in a different world from me.

[Rachel Maclean (Redditch) (Con)]

What exactly is wrong with a 65-year-old woman taking up an apprenticeship? I am not talking about all women, but why would the hon. Gentleman deny any woman the chance to work at 65?

[Alan Brown]

That is a nonsense argument. I would hope that that woman would not get paid the apprenticeship levy. The Government have a shocking minimum wage for apprenticeships. The hon. Member for Taunton Deane (Rebecca Pow) stood up during the Budget debate and said that the people of Taunton Deane had thousands of pounds more in their pockets. It really is a different world.

People on universal credit struggle as their debts increase. Food bank usage is up. Only this month, a British Medical Journal study estimated that up to 120,000 deaths in England and Wales could be attributed to the Tory austerity policy since 2010, and people over 60 are most at risk. This only touches on the world that some of the WASPI women inhabit: having to sell homes and downsize to survive; mental health problems associated with the stress; the humiliation of seeking jobs; marital pressure and break-ups; just living with the daily anger and disappointment at being let down by the state and a Government who refuse to listen.

In a previous SNP Opposition day debate, the then Secretary of State challenged our £8 billion costed proposal to reverse the Pensions Act 2011. He said that we need to look at the longer-term horizon and that it would cost £30 billion to 2025. Well, just a few months later, the Tories trooped through the Lobby following the Budget and voted for £30 billion of tax cuts, including £23.5 billion in corporation tax giveaways. So even if it would cost £30 billion, it could have been found, and it was there in the last Budget. The Budget, which has just been passed, contained a £3.2 billion stamp duty tax giveaway that will only increase house prices, £3.7 billion for Brexit preparations and an additional £7 billion for a national productivity fund. I welcome that money, but it shows that the magic money tree exists and that money can be found whenever the Tories want it.

We have heard the argument that the state pension age equalisation is all because of the bad EU—it is EU rules that have forced it upon us—yet I have not heard one of the mad Brexiteers in the Government come to the Chamber and say, “One of the benefits of leaving the EU is that we can reverse the 2011 Act”. They have never said, “Let’s stick it to the EU, take it on and give these women what they deserve”. It is high time they gave them what they deserve, and it is high time the Government started listening.

--- Later in debate ---

[Rachel Maclean (Redditch) (Con)]

It is a pleasure to speak in this debate. As time is short, I will focus on a few key issues. I cannot support the motion for a few crucial reasons, the first of which is that the SNP has not clarified its own domestic position adequately to the House. We have heard that there have been many debates on the issue, and the Minister has clarified that there are powers available in the Scotland Act 2016, passed by this House, so I ask SNP Members to consider why the SNP has not addressed this itself in Scotland. Is it simply because it faces declining popularity in Scotland, as reflected in our having more Scottish Conservative MPs?

We all have met WASPI women in our constituencies, and I have spoken to women who have been affected. I am very much aware that these women have been working hard since they were 14 or 15 and have often borne the brunt of caring responsibilities. They have brought up families, and they definitely feel a sense of injustice.

[Mike Amesbury (Weaver Vale) (Lab)]

Surely this is about justice, about doing the right thing for WASPI women and about Conservatives joining Opposition Members on the issue. The 31 Conservatives who claim to be supporting the WASPI women—and rightfully so—should join us in the Lobby. Let us have some justice and some proper transitional arrangements.

[Rachel Maclean]

I thank the hon. Gentleman for his intervention, but the basis of the claim in the motion is that nothing has been done, and that is simply not the case. This Government have already allocated more than £1 billion to help women. We have heard this morning from the First Secretary of State that the pension age will be equalised by next year. Although I accept that there are women who feel a sense of injustice, this motion is not the way to deal with it. Let us instead look at what the Government have done to improve the lives of older people up and down this country, including in Scotland.

The investment in the NHS has meant that we have seen people receiving better healthcare, enabling them to live fuller active lives, which means participating in the workforce for longer. I was surprised to hear that it might be an insult for a woman aged 65 to be offered an apprenticeship. I know women of 65 who find that a great opportunity—why write off women just because they are 65? The idea does not apply to all women—no one is saying it does—but research shows that when women take up such opportunities at the age of 65, they report increased satisfaction. We all know that participating in the workforce is one of the best ways to improve mental health and a whole range of other outcomes. I reject the suggestion that it is insulting. Government Members like to think about how we can create more opportunities for our people to participate and live fuller lives, at all stages of their lives. It is incumbent on Members from all parties to recognise that and support it.

We need to look into some of the statistics that Opposition Members have made claims about. Having read some briefings, I do not recognise some of the statistics on maladministration, an issue that the Minister addressed. We need to be honest about the communication programme and the fact that women have been able to plan for their retirement. The crux of my argument is that there is no suggestion that the SNP proposal is costed, and I dispute the figure put forward by its Members.

[Ian Blackford]

Will the hon. Lady give way?

[Rachel Maclean]

I am sorry but no, I will not. I need to finish.

[Ian Blackford]

On a point of order, Madam Deputy Speaker. This is important. I pointed out earlier in the debate that the SNP published the Landman report last year and it was fully costed. The hon. Member for Redditch (Rachel Maclean) has made an error by saying that our proposal has not been costed. It has been costed precisely and she should recognise that.

[Madam Deputy Speaker (Dame Rosie Winterton)]

That is not a point of order, it is a point of debate, and it has simply reduced the time available for other people to speak.

[Rachel Maclean]

Research has suggested that it might cost £36 billion to implement the proposals. When I speak to WASPI women in Redditch, how am I supposed to say to them, “Let’s not spend money helping your children and grandchildren”—

[Madam Deputy Speaker]

Order.

--- Later in debate ---

[Caroline Dinenage]

I am not going to give way to the right hon. Gentleman. He made criticisms in relation to the Budget and the Chancellor, but he went on to speak for a considerable time today, taking more than 40 minutes for himself and depriving Back Benchers of the chance to have their say. I will make some progress—[Interruption.] I want to address some of the issues that have been raised by SNP Members, so if the right hon. Gentleman would like to listen, I will do so.

As has previously been stated—my hon. Friend the Member for Aberdeen South (Ross Thomson) pointed this out—if the Scottish National party disagrees with any of the UK Government’s welfare reforms, it has the power to do something about it in Scotland.

The right hon. Member for Ross, Skye and Lochaber (Ian Blackford) has mentioned on several occasions that the Scottish National party’s Westminster parliamentary group published a report by Landman Economics, which modelled—[Interruption.] I thought he would be keen to listen to this. The report modelled the impact of a number of options for compensating women affected by the 2011 Act. Of these, the Scottish National party’s preferred option was to abandon that Act entirely, returning us to the timetable under the Pensions Act 1995.

The SNP-commissioned report put the cost of this option at £7.9 billion for the period between 2016-17 to 2020-21. As it stands, that is simply unaffordable, but it has the double misfortune of also being wrong. The Landman report significantly underestimates the full costs of returning to the 1995 Act’s timetable. The Government estimate that the cost over that period would be about £14 billion—nearly double—and that figure includes the impact of lost revenue from tax and national insurance, which the Landman report does not fully take into account.

What is worse is that the SNP’s position applies the costs only to the five-year window between 2016-17 and 2020-21. The costs beyond this horizon are simply not included in the option put forward. If the changes we are implementing did not happen, the actual costs to working-age people would be more than £30 billion over an extended period, which is equivalent to over £1,100 per household. I am sure the right hon. Gentleman would like to justify that to his constituents.

The Scottish National party has also suggested using the national insurance fund to pay for the cost of scrapping the Pensions Act 2011. However, that is not the intended use of the fund, and it is worth reiterating that today’s national insurance contributions fund today’s pensions, with an excess of only two months’ outgoing payments at any given time.

The new state pension is actually much more generous for many women, who were historically worse off under the old system. By 2030, over 3 million women stand to gain an average of £550 extra per year as a result of these changes. The acceleration of the increase in the state pension age for both women and men is necessary to ensure the state pension system’s sustainability in the light of increasing life expectancy and more pressure on public resources. In fact, by 2035, there will be more than twice as many people aged 100 and over as there are now.

Failure to act in the light of such compelling evidence would be reckless. Given the increasing financial pressure that I have described, we cannot and should not unpick a policy that has been in place for 22 years. It is simply not affordable, especially when we take into account the fact that the average woman reaching state pension age will get a higher state pension income over her lifetime than an average woman reaching state pension age at any earlier point.

It is important to appreciate the modern lived experience of later life in the 21st century, which has altered significantly since the inception of the state pension in the 1940s. Longer life, better health and continued activity in later decades are reshaping the profile and participation of older people in our society. This includes sustaining work and other economic activity as those over 60 continue to learn, earn, contribute and participate.

[Rachel Maclean]

Contrary to the assertion by SNP Members that it is an insult to offer an apprenticeship, does my hon. Friend agree that saying that is actually an insult to women who would like to take up—