State Pension Age (Women)

Debate between Rachel Reeves and Mark Durkan

Wednesday 11th May 2011 Westminster Hall

[Rachel Reeves]

Yes. That is another point that my hon. Friend the Member for Erith and Thamesmead made earlier. Many of the women who will be affected by this change have written to us, but even more women have not done so. The reason they have not written to us is not because they are happy and fine with these changes. By and large, it is because they are not aware of them. They are aware that they will have to work for longer than they had previously thought, because of the changes made in 1995 that will equalise the state pension age for men and women by 2020, but they do not know that those additional changes are coming down the line. So they are making changes now—as I said before, many of them are moving to part-time work so that they can care for elderly parents or young grandchildren—unaware that these additional changes are coming down the line. I think that people will be particularly worried or scared about what the future holds for them.

[Mark Durkan (Foyle) (SDLP)]

I thank my hon. Friend for giving way. Does she agree that, if those women do not hear the Minister say that he is revising these proposals because they represent an unintended anomaly, they can only conclude that they are being selected as the victims of an intentional injustice and that they are to suffer a drive-by hit on their pension rights?

[Rachel Reeves]

Yes. The hon. Gentleman’s intervention also touches on a point that my hon. Friend the Member for Wirral South (Alison McGovern) made earlier when she talked about the importance of people having trust in the pensions system. Unless we trust the pensions system and can have some certainty about what the future holds for us, it is very difficult for people—both men and women—to prepare for the future.

I want to quote something else that the Minister has said. In October 2009, he said:

“The Tories still seem to think that as long as women have husbands they don’t need to worry about their pensions.”

I wonder whether he has changed his views now that he is in government with the Conservatives. As the hon. Member for Mid Dorset and North Poole said earlier, women have been consistently badly served by the pensions system, both occupational and state. In opposition, the Minister campaigned for women pensioners, but now that he is in government he is hurting them hard. I wonder why he is doing that, when he is under no obligation to do so. I repeat that these changes were not in the coalition agreement, so he has no reason to support them.

Of course, the Minister has claimed that these women have jobseeker’s allowance to fall back on. But as hon. Members have already said, that does not seem to be the point. Talking about JSA is an insult to those who have worked their entire lives, especially because JSA only provides about half the income that the pension credit provides and about two thirds of the income that the basic state pension provides. These women do not want a handout. They legitimately want to receive the pension that they have contributed to on the date that they were promised it. Again, that brings us back to the issue of trust. It is so important that people have trust in the pensions system.

We have heard a lot of stories today about how these changes will affect great numbers of women, because every one of those 500,000 women who will have to wait an additional year before they receive their state pension has a personal story. We have heard some of those stories already. I want to tell Members two stories that I have heard that I think are particularly powerful. The first is from Barbara Bates, who says:

“From the age of 15, I have worked every day of my life, apart from a few years when I stayed at home to care for my disabled husband until his death in 2003. Since 1995, I have thought that I would retire in 2018, when I will be 64. I have based all my plans for the future on this. I now have to wait an extra two years to retire—in April 2020, when I will be 66. I feel robbed—robbed of two years of freedom, and robbed of more than £10,000 that I would have received as my state pension. The basic state pension will be my only retirement income, and I have no extra means of coping financially. I will have no option but to try and carry on working. I have osteoarthritis in my thumbs and wrists now, which makes the lifting and cleaning work in my job harder: I’m not sure how I’ll manage to the age of 66.”

I will read out another story, from Linda Murray:

“I started working at 16 and have worked full-time ever since, apart from a brief period of part-time work when I was caring for my mother. I work in a very physically demanding job, at a dry cleaners, for 46 hours each week just to make ends meet. I have never had the means to save for a private pension. When I started work, private pensions were not readily available for ordinary workers. We paid our contributions and assumed that we would draw a state pension and that it would be sufficient. Due to my circumstances, I know that full retirement is no longer an option. My plan was to greatly reduce my hours when I received my pension and return to part-time work. Now I estimate that I would need to save at least £12,000 just to be able to work part-time from the age of 64. Saving anything is impossible. I will not be able to continue working these demanding hours until the age of 66 and I am deeply worried about my future.”

It is people such as Linda and Barbara who I think most of us went into politics to serve, yet the Minister, who in opposition campaigned so much for women, is now hitting them hard, as I said earlier. These are stories, not numbers, and they hit home hard. It is wrong to hurt a group of women disproportionately, by giving them such little notice of a change when they have such little chance of making up the difference in income that they will lose.

Labour accepts and celebrates increasing longevity and therefore we accept that there is a need to increase the state pension age, as we did when we implemented the recommendations of the Turner report. However, making changes to pensions must be done in a fair way, giving people enough time to prepare for them.

What Labour now proposes is no more changes before 2020 and, if the Government accept the amendment to the Pensions Bill that they rejected in the House of Lords, we will support the state pension age increasing from 65 to 66 between 2020 and 2022. That would achieve a £20 billion reduction in expenditure, would affect equal numbers of men and women and, crucially, would affect 1.2 million fewer people than the Government’s current plans. It would give people nine years—not just five—to adjust to the changes, and no one would have to wait more than a year longer than expected to claim their state pension, to which they had contributed throughout their lives.

We will not let this matter go and nor, do not think, will the women affected. We must hold the coalition to account on its agreement.