State Pension Age (Women)

Debate between Tim Loughton and Drew Hendry

Thursday 7th January 2016 Commons Chamber

[Tim Loughton]

I will not give way again, because so many other Members wish to speak.

It is right for the rise in the pension age to reflect growing life expectancy, but a number of recent medical and actuarial studies show that life expectancy for women aged 65, 75, 85 and 95 fell in 2012, while rates among men continued to rise. There are big discrepancies in life expectancy among some of the poorest women in society, and, of course, those born in the 1950s—the ones whom we are discussing today—are the most reliant on the state pension, and therefore the most vulnerable to the changes. There are grounds for querying why members of that group are being hit disproportionately.

There is also the question of whether the women were given proper and adequate notice. I think we all agree that that clearly did not happen. The money expert Paul Lewis, who has helped to articulate this campaign so successfully, has given details about how little notice some women received:

“Approximately 650,000 women worst affected by the speed up— those born 6 April 1953 to 5 April 1955—were written to in…February 2012.

That means they got their letters between the ages of 57 and almost 59 that their pension age would not be 60.”

Some women received no notification at all.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Will the hon. Gentleman give way?

[Tim Loughton]

I will not give way.

Those women had precious little time in which to make alternative arrangements, even if they could afford to. That could not happen now because of changes introduced in the state pension review of 2015. However, Angela Heasman, one of my Shoreham constituents, pointed out:

“A very important point that I feel has been missed here is that if one considers what if ten or 15 years notice bad been given? For the women, like myself, who are low earners in part-time work, they would not have had enough or any disposable income to pay into a private pension on top of the high and ever rising contributions to National Insurance.

To put this in perspective, in order to save enough into a private pension for an annuity of £6,000 pa you are looking at…£100,000. This is why for low paid people their National Insurance contributions are all they can afford and consequently totally dependent upon a state pension. Therefore even ten years notice is not enough time for the low paid to pay into a private pension that would equal the State Pension.”

She suggested that

“the reintroduction of Pension Credit, which is means tested, would alleviate, at a stroke, those who find themselves in this invidious position. If Pension Credit could be reinstated from 60, and add on Pensioner Benefits this would lift those who are genuinely hit the hardest out of extreme poverty.”

I ask the Minister to consider that suggestion.

It is difficult for many older women to stay in the workplace or get back into it. Unemployment rates among women over 50 are well above the national average. The gender pay gap is at its worst for women in their 50s—exactly the sort of women whom we are discussing.

Recent comments from Steve Webb, the former Pensions Minister, strongly indicate that he acknowledged that the Department for Work and Pensions had been at fault in failing to provide adequate notice for the women affected when he made a big fuss about negotiating a six-month concession at the time. That has been compounded by his recent comment that the Government had “made a bad decision” about the state pension age, and had been badly briefed.

During previous debates, when the last changes were made, the Minister gave strong indications that transitional arrangements would be made for the worst affected, but that has not happened. Why not? Will the Minister please revisit that undertaking?

As I said earlier, I have received many e-mails from around the country and from my own constituents. Let me end my speech by quoting the closing paragraph of a letter from a woman in Worthing. She wrote:

“I have also heard some MPs say that older people should downsize their homes to free up the housing stock for families. We did this so that our larger house, where my husband had lived all his life, could be enjoyed by a family but we are quickly using up any money for normal day to day expenses…It seems that we older women who have contributed to society are considered unimportant and not worth the financial support that we have earned over the years.”

I believe that we risk breaching the trust of women who have made many sacrifices, and who do not now have the expectations for their retirement that they were led to believe they would have.