State Pension Age (Women)

Yasmin Qureshi Excerpts

Thursday 7th January 2016 Commons Chamber

[Yasmin Qureshi (Bolton South East) (Lab)]

rose—

[Mhairi Black]

I want to make some progress.

Some people say, “You should not have to be written to. It’s your pension, you should be keeping an eye on it. You should be looking out for reports and things, and take responsibility.” But when giving evidence to the Work and Pensions Committee, financial journalist Paul Lewis told us that after researching this himself he could barely find any reporting of the issue at all in 1995. There were a few small press cuttings from the business pages at the back of some newspapers. A freedom of information request revealed that the Government did fund “broader” awareness campaigns, which ran in waves between 2001 and 2004, but that these campaigns

“did not focus on equalisation in particular”.

In fact, only one of the press adverts in those campaigns was focused on this issue—one press cutting roughly seven years after this had already been passed into law. It is quite evident that this whole thing became a total mess. I do not know whether it was not reported deliberately, for political reasons or fear of ramifications, or whether it was a genuine accident, but what I do know is that women were not notified. It was not reported and they were not given enough time to be able to make appropriate arrangements.

This brings us on to the Pensions Act 2007, which increased the equalised state pension age from 65 to 66 between 2024 and 2026. It gave all affected people 17 years’ notice. That is fair enough, but then we come on to what the hon. Member for Denton and Reddish (Andrew Gwynne) mentioned, the Pensions Act 2011. That came along and said, “Forget the 17 years’ notice, we’re going to rush this through. We need to do this right now.” The 2011 Act accelerated pension age equalisation for women and the subsequent increase to 66, effective from October 2016 onwards, meaning that affected women had only five years’ notice to try to remedy life plans that had been in place for years.

--- Later in debate ---

[Yasmin Qureshi (Bolton South East) (Lab)]

When the latest changes to pensions were made in the Pensions Act 2011, Labour Members objected to them. We had many debates about the issue—I remember speaking in them—and focused especially on the double-whammy effect on women, but the Government went ahead and passed the legislation.

I want to explain to the Minister what my constituents have written to me—I will read some of it out—about how women are being affected by the changes. Every one of the women who has contacted me has said that they agree with state pension age equality, but they object to and have difficulty with the way in which it has been implemented, particularly the acceleration of the increase and the lack of information.

Some of my constituents who are directly affected by the changes have told me that, even now, they have not received any communication or formal notification of the changes from the Department for Work and Pensions. That is utterly unacceptable, given the gravity of the changes. Posting notices in women’s magazines and Sunday supplements is both patronising and ineffective. None of the women I have spoken to are readers of such publications; they found out about the changes through word of mouth.

As the increase in the pension age is literally life-changing, far more notice should have been given ahead of the changes, and the Government should have ensured that everyone affected can plan for their future. One lady I spoke to told me that she has lived at the same address for the past 30 years and has not received anything. There is no excuse for that. To suggest that people somehow knew what was happening is wrong.

[Oliver Colvile (Plymouth, Sutton and Devonport) (Con)]

I fully recognise that there has been a breakdown in communication from successive Governments, but does the hon. Lady have a practical solution to deal with that?

[Yasmin Qureshi]

I will come on to the practical solution later in my speech.

Women have told me that their other major concern is that, even when they have been notified, they have not had enough time to prepare for the major changes in their lives. One of my constituents is 62 years of age and she was due to retire at 62 years and three months. However, she will now have to work until she is 65. Understandably, that has caused a great deal of distress and uncertainty for her, because she had been planning to retire in a few months’ time. Her plan was to co-ordinate her retirement with the birth of her grandchildren so that she could look after them and not have to resort to having the Government pay for their childcare. The changes have thrown her life into turmoil and, of course, the Government will now end up paying for that childcare.

Another constituent has told me that, anticipating retirement at 60, she took voluntary redundancy aged 58 and a half when her company was seeking to downsize. She was later informed that she will not be able to access her state person until she is 66 years of age. She now finds herself unemployed and having difficulty finding another job, because of her age. She has been left in financial hardship as a result of not being notified about the changes to the state pension age until it was too late. She is not the only example; many thousands of women across the United Kingdom are in the same boat.

The discrepancy of two years and two months for women born between April and December 1953 is simply confusing and unfair. The Chancellor of the Exchequer and the Government were told as much in the debates in 2011. It means that, for some constituents, the difference is about £14,000, which is a lot of money. Again, it is not just a few of my constituents who have been affected, but women across the country.

Hundreds of thousands of women have had significant changes imposed on them not just once, but twice, with a lack of appropriate notification, and retirement plans have been shattered, with devastating consequences. The Government seem to have failed to recognise the severe impact that the speed of the implementation of those changes has had on those women. The changes have not affected men to the same extent, as their state pension age has not been increased by such a large amount and they have had much more notice. The pension system has historically discriminated against women, and the new changes are yet another example of that.

I urge the Government to reconsider the provisions and to diminish their impact by making transitional arrangements that are fairer for those women affected.

[Victoria Atkins (Louth and Horncastle) (Con)]

I have listened with great interest to the hon. Lady’s speech and to those of other Labour Members, particularly to their references to transitional arrangements. I wonder whether she could help me. What does she mean by and what would she suggest as “transitional arrangements”, how much will they cost and how will we find the money?

[Yasmin Qureshi]

I am glad that the hon. Lady has given me extra time for this speech. There are many different ways in which to deal with the issue; there is not one panacea or simple solution. If the Government want a comprehensive response from me about the way forward, I am very happy to put together a detailed plan about how to deal with this issue.

[Stephen Kinnock (Aberavon) (Lab)]

Conservative Members are constantly asking what a practical transitional plan might look like. Surely it is the responsibility of the Government to bring forward such a plan, which the House can then debate. This is an abdication of responsibility.

[Yasmin Qureshi]

I entirely agree with my hon. Friend. It is typical of this Government’s approach to such things.

[Mark Durkan]

My hon. Friend may recall that a further transitional arrangement was proposed when the Bill went through in 2011. In October 2011, an arrangement was proposed that would have meant nobody had to wait more than a year, rather than up to 18 months, to reach their pension age. It would have cost £10 billion over 10 years, and it would have meant having a common state pension age in 2022. That was proposed, but the Government rejected it.

[Yasmin Qureshi]

I am very grateful to my hon. Friend for his intervention, which I hope has helped the hon. Member for Louth and Horncastle (Victoria Atkins).

As I have said, I am very happy to pen a very detailed plan to help such ladies, but if I write it, I would like the Government to promise to implement it. Perhaps the Government will give me an assurance that, when I come up with suggestions about how to deal with various problems, they will say, “Yes, you are right: the hon. Member for Bolton South East has come up with a solution, and we will actually implement what she says.” Will the Minister make me such a promise?