State Pension: Women born in the 1950s

Ross Thomson Excerpts

Thursday 22nd November 2018 Westminster Hall

[Alex Burghart]

The focus of the debate is compensation for the women involved. It is a fact that the Scottish Government could do more than they are doing.

[Ross Thomson (Aberdeen South) (Con)]

I want this issue to be addressed at UK level—that is absolutely right—but devolution across the UK means that different choices can be taken by those who are in power. It is not just section 28 that gives the Scottish Government the powers to act. Section 26 allows them to make short-term payments to people who need them to

“avoid a risk to the well-being of an individual.”

I genuinely believe that the Scottish Government should act where they can, and they should not play politics with this issue.

[Alex Burghart]

I am sure we all agree that that was a very interesting intervention. Once again, the SNP wants all the power and none of the responsibility. The Labour party has made multiple suggestions about how it would address the situation, and many Opposition Members seek the full compensation package of £70 billion. They proposed in their manifesto to keep the state pension age at 66, which reversed the Labour decision of 2007. It would cost at least £250 billion more than the Government’s preferred timetable, and that is not covered by the party’s 2017 manifesto.

In addition, I understand that there are particular legal difficulties in reintroducing a different retirement age for men and women. Unquestionably, any amendment to the current legislation that introduced a new inequality would be challenged. This is an unsatisfactory situation. I admire the very good campaign that the WASPI campaigners have put together. Having met them, I know that they are principled people who wish to see policy change for entirely understandable reasons. However, I see the cost of change as absolutely prohibitive, and I see no solution from either Opposition party.

--- Later in debate ---

[Jim Shannon]

The hon. Gentleman is absolutely right. They thought they had planned for their pension age, but suddenly found that it was grasped away from them at the last moment. The impact on women throughout Northern Ireland is incredible. I have said this before, and I will keep on saying it: we need to do the right thing. The hon. Member for North Ayrshire and Arran said that we must do the right thing. I am here to do the right thing and make sure it happens.

This equalisation was initially brought about in 1995, when an EU directive prompted the Government to equalise retirement age for men and women—then 65 and 60 respectively. The Government chose to level it at 65, and it was decided to increase women’s SPA in stages between 2010 and 2020. Women born in 1950-51 would retire at 61, those born in 1952-53 would retire at 62 and so on until 65 was reached for all post-1955 women in 2020.

I am unsure how we got to the stage at which we are asking women to work into their 70s and beyond. People are working longer, but they will not live longer if we make them work longer. I believe that enough is enough. I am not alone in that view. I read an article—the hon. Member for North Ayrshire and Arran referred to it—that said:

“A United Nations independent expert has affirmed the stance taken by campaign groups including the Women Against State Pension Inequality…that certain women have been affected disproportionately by recent pension age changes.”

We cannot ignore the United Nations—we often refer to it.

“Philip Alston’s report Statement on Visit to the United Kingdom on extreme poverty and human rights, out on Friday (16 November), showed the number of pensioners living in poverty in the UK had risen by 300,000 to 16 per cent in the four years to 2016/17. This was despite measures such as the triple lock guarantee. But he found a group of women born in the 1950s had been particularly impacted a ‘poorly phased in’ change in the state pension age.

Mr Alston said: ‘As was made clear to me in a number of submissions and through powerful personal testimony, a group of women born in the 1950s have been particularly impacted by an abrupt and poorly phased in change in the state pension age from 60 to 66.

The impact of the changes to pensionable age is such as to severely penalise those who happen to be on the cusp of retirement and who had well-founded expectations of entering the next phase of their lives”—

as the hon. Member for Ipswich (Sandy Martin) said—

“rather than being plunged back into a workforce for which many of them were ill-prepared and to which they could not reasonably have been expected to adjust with no notice.’”

[Ross Thomson]

I want to share the experience of Ann from my constituency, whom I met on Friday. Three months prior to her 60th birthday, she had to leave work due to a health issue. She lived alone and had no income, and therefore had nothing to resort to bar her life savings. She is now living on a very small work pension, but had to add to that significantly from her savings. Over the years, she had done exactly what the hon. Gentleman spoke about. She had planned how to spend her savings, but she now has to use them for ordinary living expenses instead. There is an inherent unfairness in that.

[Jim Shannon]

The hon. Gentleman is absolutely right. He has told us the experience of his constituent, as I have done—many of mine tell me the same thing. They are not physically able to continue to work and have planned their future in what they thought was the right way, only to find that it has been—if I may use this word—stolen from them by this system. I could not do anything other than come to the debate in Westminster Hall to speak on behalf of the 5,800 constituents of mine who have indicated their distress and need for the Government to address the issue.

I understand that others want to speak and I want to try and keep to the timescale that you indicated, Mr Bone, so I will conclude. It is clear that others can see what the Government cannot. We must address the issue, and address it now. I hope the Minister will outline how he intends to address it rather than—with respect—wash his hands of it. It is time for action, not for words. Enough is enough.