Oral Answers to Questions
Debate between Shailesh Vara and Baroness Keeley(8 years, 4 months ago)
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Jessica Morden (Newport East) (Lab)
4. If he will make it his policy to introduce transitional protection for women adversely affected by the acceleration of increases in the state pension age.
Barbara Keeley (Worsley and Eccles South) (Lab)
9. If he will make it his policy to introduce transitional protection for women adversely affected by the acceleration of increases in the state pension age.
The Parliamentary Under-Secretary of State for Work and Pensions (Mr Shailesh Vara)
Transitional arrangements are already in place. We committed over £1 billion to lessen the impact of the changes for those worst affected, so that no one will see their pension age change by more than 18 months compared with the previous timetable. We have no plans for further changes.
Mr Vara
The hon. Lady refers to notice. At the time of the Pensions Act 2011, more than 5 million affected people did receive notification. That was done using the addresses Her Majesty’s Revenue and Customs then had. As far as the proposals are concerned, they all, regrettably, cost a huge amount of money. We therefore have no plans to go down that route.
Barbara Keeley
In reality, it is the 1950s-born women who are bearing the cost. My constituent is 62-years-old and is about to be made redundant in July. She suffers with diabetes, a heart condition and COPD. She tells me that, owing to limited childcare, she worked part-time when her family were young and could not contribute to her pension. She is now very anxious that she will never be able to secure another job, and will not receive her state pension until she is 66. She has a large black hole now in her life. How does the Minister advise her on facing that bleak future?
Mr Vara
I assure the hon. Lady that, under the coalition Government and the present Government, we have record levels of employment for women, including older women. That is something to bear in mind. We are working extensively with employers to ensure they appreciate the value of older workers, which they do. That is why we have record levels of employment, particularly for women.
Oral Answers to Questions
Debate between Shailesh Vara and Baroness Keeley(8 years, 6 months ago)
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Mr Vara
With permission, Mr Speaker, I will take the hon. Lady’s reference, “from one Minister to another” slightly broadly and remind her that, following the passing of the Pensions Act in 1995 there were 13 years of Labour government during which a succession of Secretaries of State for Work and Pensions and pensions Ministers did absolutely nothing to try to alter the system that she and her colleagues now seek to change.
Barbara Keeley
While Ministers do nothing, my constituents and other people are really suffering. My constituent, a woman born in the 1950s, told me:
“I feel anxious and distressed about how I am going to manage without an income in what has been, for my generation, the expected retirement age.”
It is six months since we had our first debate on this, so will the Minister and the Secretary of State now commit that civil servants will assist with costing the various options for transitional arrangements that have been put forward by Labour?
Oral Answers to Questions
Debate between Shailesh Vara and Baroness Keeley(8 years, 9 months ago)
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Mr Speaker
No one could accuse the Minister of excluding from his answer any matter that might in any way, at any time or to any degree be judged to be material, and we are grateful to him.
Barbara Keeley (Worsley and Eccles South) (Lab)
The Minister talks about life expectancy, but he is not giving us the full picture. Life expectancy for women fell in 2012-13, and Salford has some of the worst life expectancy figures in the country. Female life expectancy in one ward in my constituency is only 72 years, and healthy life expectancy is only 54. Why should 1950s-born women in Salford carry the burden of the equalisation of the state pension age given that working until 66 is clearly going to be difficult for them? Those women need transitional arrangements.
Transitional State Pension Arrangements for Women
Debate between Shailesh Vara and Baroness Keeley(8 years, 9 months ago)
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Mr Vara
I will not give way; I wish to make progress.
As I was saying, we must also acknowledge the wider package of reforms that we have introduced to ensure a fair deal for pensioners.
On life expectancy, people now live longer and stay healthier for longer. I took on board what the hon. Member for Worsley and Eccles South (Barbara Keeley) said, but although she may have quoted a specific figure, other figures show that life expectancy is projected to increase for both men and women. In just a decade, the length of time that 65-year-olds—
State Pension Age (Women)
Debate between Shailesh Vara and Baroness Keeley(8 years, 10 months ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Mr Shailesh Vara)
I congratulate the hon. Member for Paisley and Renfrewshire South (Mhairi Black) on managing to secure this debate, which has attracted many Members on both sides of the House. I also commend all the colleagues who have taken the trouble to come here and speak today. I will try to address as many of their points as I can in the limited time available to me.
I should like to begin by reminding the House of the rationale for reforming the timetable. For our state pension system to function effectively, it has to be fair, affordable and sustainable. The changes made to the state pension age under the Pensions Act 2011 make an important contribution to achieving those aims. Gender equality is one of the main purposes of the changes to the state pension age. Under the previous system, women reaching state pension age in 2010 would spend on average 41% of their adult lives in receipt of the state pension. For men, the figure was only 31%, owing to the longer life expectancy and earlier state pension age of women.
It makes little sense for women to work to a pension age originally set in 1940 which does not reflect the employment opportunities open to them in a modern society. Changes were needed to take account of increased life expectancy and to ensure fairness for working-age people who would otherwise bear the cost of this longevity. Following sharp rises in life expectancy, the previous Government acted to address this and brought forward the timetable for rises in the state pension age. This was vital if we were to continue to meet the UK’s obligations under EU law to eliminate gender inequalities in social security provision and to ensure that the state pension remained affordable and sustainable. It is also important to look at the changes in the context of our wider pension reforms and what these mean for women.
Barbara Keeley
The Minister cannot have been listening to what I said earlier. A substantial proportion of what I said showed that that is not the case, although he and his colleagues are hiding behind that argument. We were not required to do that. Some EU countries are not equalising until 2040 or 2044, and some are maintaining a difference. Will he please stop hiding behind something that is not true?
State Pension Age Equalisation
Debate between Shailesh Vara and Baroness Keeley(8 years, 11 months ago)
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This information is provided by Parallel Parliament and does not comprise part of the offical record
The Parliamentary Under-Secretary of State for Work and Pensions (Mr Shailesh Vara)
I congratulate the hon. Member for Worsley and Eccles South (Barbara Keeley) on securing the debate. I recognise that the subject is hugely important and I commend all the contributors, who have spoken eloquently and passionately. It has caused a huge amount of correspondence for all of us as Members of Parliament. In the course of my comments over the next 10 or so minutes, I shall address as many of the points made by colleagues as possible.
The debate provides me with an opportunity to set out the Government’s position on state pension age equalisation, in particular regarding women born in the 1950s. The acceleration of state pension age equalisation and the increase to the age of 66 under the Pensions Act 2011 achieved gender equality in state pension provision, while also saving more than £30 billion for the state, thereby ensuring the affordability and sustainability of our reformed pensions system. It is important to recognise that we must have a pensions system that is affordable and sustainable.
It is also important to remember that gender equality was one of the main purposes of the state pension age changes.
Barbara Keeley
We have heard equality mentioned many times. The generation of 1950s-born women have not known equality in their lives, in pay or in pensions. Why should they carry the weight of the savings that the Minister has just lauded? Why should that group of women who have suffered so much inequality in their lives carry the weight?
Mr Vara
The hon. Gentleman speaks about fairness and transition arrangements, and I will come to that, but I repeat the point that there is a cost to all of this. I am trying to make this apolitical, but given that so much political comment has been made against the Government and the previous coalition Government that my party, the Conservative party, led, I gently remind all colleagues not to forget that between the Pensions Act 1995 and the Pensions Act 2011 there was the small matter of a 13-year Labour Government, which seems to have been conveniently forgotten in everything said about communication, concessions and so on.
Mr Vara
The hon. Gentleman has said nothing that had not already been said, and I will refer to issues as I progress.
Equalisation was necessary to meet the UK’s obligations under EU law to eliminate gender inequalities in social security provision. The five-year gap in men’s and women’s state pension age dated back to the 1940s and is not fair in a world where women’s employment opportunities have opened up and provisions are made for carers. I hope that all colleagues on both sides of the House agree with that.
The resources made available allowed the new state pension reforms to take place in the form that we have introduced, benefiting those women who would have had poor outcomes under the current system largely as a result of lower average earnings and part-time working. About 650,000 women reaching state pension age in the first 10 years will receive an average of £8 a week more in 2014-15 earnings terms owing to the new state pension valuation of their national insurance record.
To encourage and enable those who want to work longer is a priority for the Government. That is the real solution to ensuring a comfortable and fulfilling later life. People having fuller working lives would not only help our pensions system to remain sustainable but could greatly benefit the economy. Research by the National Institute of Economic and Social Research has shown that adding just one year to people’s working lives would add 1% to GDP a year.
Recent polling indicates that many people want to work longer. A YouGov survey has shown that 74% of people in their 50s who have not retired would like to be in work between the ages of 60 and 65. To help older workers in the labour market, the Government have extended the right of flexible working to all employees. In the same YouGov poll, more women than men said that they would prefer to work flexibly or part-time before retiring. Of course, working longer also provides the opportunity to build up a bigger retirement income.
We know that some people cannot work. For some, that is because they have caring responsibilities; others will suffer from disability, making the continuation of work difficult. We must remember that women affected will be eligible for the same in-work, out-of-work or disability benefits as men of the same age.
For those who cannot work because they have caring responsibilities, carer’s allowance will be available. Those who get carer’s allowance are also awarded national insurance credits automatically.
Barbara Keeley
The Minister needs to understand that the question is not whether women born in the 1950s need more national insurance credits. Almost every WASPI campaigner I have met has 40 to 44 years of credits already. There is no question of their needing to pay any more national insurance.
Mr Vara
I do not think that the hon. Lady speaks for everyone. I am sorry that she derides the additional benefits that the Government have sought to introduce; I am sure that some women out there will appreciate the fact that, in 2011, credits were introduced to help grandparents and other adult family members who look after a child under 12 to help working parents. It is noteworthy that independent analysis by the Institute for Fiscal Studies has shown that the rise in women’s state pension age since 2010 has been accompanied by increases in employment rates for the women affected.
The reforms would leave more of those women, and their male counterparts, who really need the state pension better off than if we had retained the current arrangements. That is a better use of taxpayers’ money than spending on transitional arrangements, which will inevitably prolong gender inequality. I am minded to say that removing state pension age gender inequality is right.
When the first contributory state pension was established in 1926, men who reached 65 could expect to live for another 11.3 years. In 2014, however, a man who reached 65 could expect to live for another 21.5 years. Importantly, the Government listened to concerns expressed at the time of the 2011 Act and shortened the delay that anyone would experience in claiming their state pension, relative to the 1995 timetable, to 18 months. That concession, which came after the speech by the Secretary of State on Second Reading that has been referred to, benefited almost a quarter of a million women who would otherwise have experienced delays of up to two years. A similar number of men also benefited from a reduced increase. The concession was worth some £1.1 billion in total, and, as a result, 81% of women affected will experience a delay of 12 months or less.
It is argued by some that these women were not given adequate notice of state pension age equalisation. I do not accept that. Following the 2011 Act, the Department for Work and Pensions wrote to all those directly affected to inform them of the change to their state pension age, using the address details recorded by Her Majesty’s Revenue and Customs at the time.
I am conscious of time, I so will conclude. The decision to increase women’s state pension age is designed to remove the inequality between men and women. The cost of prolonging this inequality would be several billions of pounds. Parliament extensively debated the issue and listened to all arguments both for and against the acceleration of the timetable to remove the inequality. The achievement of this by 2018 was considered and approved by Parliament and there are no plans to make any policy changes.
Oral Answers to Questions
Debate between Shailesh Vara and Baroness Keeley(9 years ago)
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Barbara Keeley (Worsley and Eccles South) (Lab)
The Under-Secretary of State for Justice, the hon. Member for North West Cambridgeshire (Mr Vara), said earlier that letters were sent to all women born in the 1950s to inform them of changes to the state pension age. I have to say to him that the campaigning group, Women Against State Pension Inequality, disagrees with him. I have constituents who were not informed of the changes, and they suddenly discovered that they were not going to retire soon and that they had many years to retirement. Will the Minister look again at that issue and reconsider whether that group of women affected—there are many hundreds of thousands of them—can now have transitional protection?