State Pension Age Equalisation

Tim Loughton Excerpts

Wednesday 2nd December 2015 Westminster Hall

[Barbara Keeley]

I agree, and I thank my hon. Friend for making those points so early in the debate.

The changes brought about by the 2011 Act affect the lives of millions of women born in 1954 and throughout the 1950s who are unfairly bearing the burden and the personal costs of increasing the state pension age. The changes were controversial at the time, and there was great debate about the need to address the unfair consequences of the Act. Speaking to Channel 4 News in May 2011, the director general of Saga said:

“Men won’t have any increase before 2018 and no man will have his pension increased by more than one year. Half a million women will. We accept that the pension age will have to rise but it is the timing and the broken promise that we feel is unfair. No money will be saved during this Parliament, so it’s got not about cutting the deficit. We don’t need to hurry this through to have a sustainable pension system…Many women are furious and desperate about how they are going to manage, particularly the more vulnerable women who may already have retired, who may be ill or be caring for someone. They may have made careful plans for retirement, only to have the Government pull the rug from under their feet. They can’t just work for longer, because they may have retired already.”

[Tim Loughton (East Worthing and Shoreham) (Con)]

I congratulate the hon. Lady on securing a debate on this important issue, which has crept up on many of us and affects many more women that many hon. Members will have appreciated. Does she agree that, whatever one thinks about raising the pension age, probably the most scandalous thing is the lack of notice given to women? The 650,000 women most affected by the speed-up were born between April 1953 and 1955, and they have effectively been told between the ages of 57 and 59, a matter of months ahead, that their pension age is now no longer 60. For them, planning is just not possible.

[Barbara Keeley]

Indeed. I was going to come on to that, but I hope the hon. Gentleman will think back to the Government of 1995, who started these changes.

[Tim Loughton]

I haven’t been here that long.

[Barbara Keeley]

The hon. Gentleman was here in 2011, when some of the affected women lobbied their MPs about the proposals in the then Pensions Bill. Saga commented:

“Putting pensions on a sustainable long-term footing does not justify the sudden increase being imposed on one group of women at such short notice”—

that is exactly the point he raises—

“especially when the Government knows that these particular women are more vulnerable than men and have little or no private pension wealth. Also, many are already out of the labour market and have made careful plans for their future, which are now in disarray.”

Ironically, the then director general of Saga is now the Conservative Minister for Pensions in the other place. When I wrote to her on behalf of a constituent earlier this year she told me:

“I tried hard in 2011 but there is nothing more I can do I’m afraid. It is not in my power.”

--- Later in debate ---

[Richard Graham]

The hon. Lady is right to say that women born after April 1953 had their state pension age increase accelerated under the previous Government. Paul Lewis referred to the three waves of women affected by the changes. Nothing changed for the first wave—the 1950 to 1953 group—but things changed for women born after April 1953. It is correct to say that the state pension age was accelerated for them.

Coming back to the point on communication, it is interesting that in recent evidence to the Work and Pensions Committee, the previous Pensions Minister said that it was unclear to him at exactly what stage people affected by the 1995 Act were written to. The Minister here today referred at DWP questions to a letter writing campaign from 2009 to 2010. Can he say more about that? For example, does his Department believe that that was the first stage at which women affected were written to, or was there an earlier campaign before 2009? That would be interesting to know. To some extent, the decision in December 2013 to give people affected by future pension changes,

“at least 10 years’ notice”,

shows that the DWP has taken on board the point the hon. Member for Worsley and Eccles South made on lessons learned.

[Tim Loughton]

I agree with my hon. Friend that the principle of equalising the pension age is not what is at stake in this debate. Given the clear confusion on who was told what and when, and the fact that such changes could not be made in such an accelerated fashion now for the very reason that he just mentioned, does he not agree that some form of transitional relief should be looked upon favourably? As the hon. Member for Worsley and Eccles South (Barbara Keeley) said, it is not just the amount of pension, but the delay in other benefits, such as bus passes and free prescriptions, that negatively impacts on those women who happen to have fallen foul of the changes, simply because of when they were born.

[Richard Graham]

That is a perfectly valid point that is clearly part of the WASPI campaign, and the Minister will want to comment on it. “Transitional arrangements” is both a comfortable phrase and something with significant financial implications, and he will want to discuss that.