Transitional State Pension Arrangements for Women

Debate between Shailesh Vara and Fiona Mactaggart

Wednesday 24th February 2016 Commons Chamber

[Mr Vara]

I am simply speaking from my personal experience of speaking to women. There are women who have said to me that they want the restoration of the 1995 rules. Colleagues in this House have had people in their surgeries speaking of 1995. The hon. Gentleman may not have had that—he may be out of touch, but the rest of us are not. When we talk of £77 billion or even £30 billion, we are not talking about a few million pounds or a few billion pounds. In both contexts, we are talking of tens of billions of pounds. That situation is simply not sustainable.

[Fiona Mactaggart (Slough) (Lab)]

When the hon. Gentleman says that £30 billion was saved as a result of the 2011 changes, what he is saying is that there was a transfer from one of the poorest groups in our society, which is women in their 50s. That group of women saw the largest growth in unemployment under the coalition Government and are more likely to have to work after retirement than men. When they do so, two thirds of them work on the lowest wage levels, unlike men who work after retirement, two thirds of whom work on the highest wage levels. What does he have to say about picking the pockets of the poorest women in our society?

[Mr Vara]

I will address some of the points that the right hon. Lady makes, because there is a broader context to this debate, rather than simply the issue of the pension age. Given the opportunity, I would like to make some progress.

People are living longer and leading healthier lives. Of course, that is to be welcomed, but it does increase the pressure on the state pension scheme. As a Government, we have a responsibility to keep it affordable and sustainable for future generations.

Oral Answers to Questions

Debate between Shailesh Vara and Fiona Mactaggart

Monday 7th September 2015 Commons Chamber

[Mr Vara]

May I gently remind the hon. Gentleman that the original increase in ages was started under a Labour Government? We have relaunched the campaign to ensure that the target group of people—those who are within 10 years of retirement from April 2016—take an active role in trying to find out how they will benefit under the new state pension.

[Fiona Mactaggart (Slough) (Lab)]

The Minister will be aware that the Association of British Insurers published figures this summer about the new pension freedoms which show that people with big pots are buying income drawdown and that people with small pots are cashing out. He knows that women live longer than men and that they have smaller pots than men, so what is he doing to ensure that women’s income in retirement is properly protected?

[Mr Vara]

Let me be absolutely clear: this Government will not dictate what anybody should do with their pension pots. What we have put in place is the means by which people—both men and women—can seek advice. As I mentioned earlier, there is the Money Advice Service, which has on its books more than 2,250 firms across the country that can give advice. It is for people to take that advice and then to decide. We will not dictate how people should deal with their money.