Asked by: Baroness Kinnock of Holyhead (Labour - Life peer)
Question to the Department for Work and Pensions:
To ask Her Majesty’s Government what assessment they have made of the continuing impact of the alterations to the state pension age on women born in the 1950s, on or after 6 April 1951.
Answered by Lord Freud
The decision to equalise the State Pension age for men and women dates back to 1995 and addresses a longstanding inequality. Since April 2010, women’s State Pension age has been gradually increasing for those born after 6 April 1950. Following sharp increases in life expectancy projections, and therefore the increase in the number of people living longer in retirement, this timetable was accelerated by the Pensions Act 2011.
The Government listened to concerns expressed by those affected by the Pension Act 2011 changes, and took action to limit the maximum change to State Pension age to 18 months, a concession worth over £1billion.
All those affected by the faster equalisation timetable will reach State Pension age following the introduction of the new State Pension, which is more generous for many women who have historically done poorly under the current system.
The average woman reaching State Pension age in the first forty years of the new State Pension is estimated to receive 10 per cent more State Pension over her lifetime than the average man.
Women retiring today can still expect to receive the State Pension for 26 years on average – several years longer than men. And this generation of women will spend a higher proportion of their lives in retirement than any before.
Asked by: Natalie McGarry (Independent - Glasgow East)
Question to the Scotland Office:
To ask the Secretary of State for Scotland, what recent discussions he has had with the Department for Work and Pensions on the effect of the Government's changes to the state pension age on women living in (a) Glasgow and (b) other parts of Scotland.
Answered by David Mundell
The difference in State Pension ages for women and men represented a longstanding inequality. The last Government introduced changes to the State Pension age through the Pensions Act 2011 for women and men, following extensive debates in both Houses of Parliament.
The UK Government has committed over £1 billion to ensure that the maximum change to women’s State Pension age was limited to 18 months compared to the previous timetable, and transitional arrangements are already in place for this to take effect.
All women affected by faster equalisation reach state pension age under the new state pension system, which is more generous to many women than the previous system. In the first 15 years, around 650,000 women will receive £8 per week more on average, due to the new state pension valuation.
Asked by: Louise Ellman (Independent - Liverpool, Riverside)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, whether he plans to meet with Women Against State Pension Inequality campaigners; and if he will make a statement.
Answered by Justin Tomlinson - Minister of State (Department for Energy Security and Net Zero)
The Secretary of State has met with a number of his constituents who have raised this issue, and with Tim Loughton, who has been involved in the WASPI campaign. He has made clear that he will not be bringing forward further concessions or changes.
Asked by: Owen Smith (Labour - Pontypridd)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, if he will meet representatives of the Women Against State Pension Inequality campaign.
Answered by Justin Tomlinson - Minister of State (Department for Energy Security and Net Zero)
The Secretary of State has met with a number of his constituents who have raised this issue, and he will be meeting with Tim Loughton, who has been involved in the WASPI campaign, very soon. He is clear that there are no plans to change policy.
Asked by: Julie Cooper (Labour - Burnley)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what assessment his Department has made of the effect of raising the state pension age on income inequality between men and women of the same age.
Answered by Justin Tomlinson - Minister of State (Department for Energy Security and Net Zero)
The average woman reaching State Pension age last year (2015) gets a higher state pension income over her lifetime than an average woman who reached State Pension age at any point before her – despite the equalisation of State Pension age. Also, over a lifetime, the average woman who reached State Pension age last year will receive more than the average man. This is consistent with the trend going forward, with, for those reaching State Pension age between 2016 and 2060, women receiving 10 per cent more new State Pension lifetime income than men.
Further information on the impacts of the new State Pension can be found at:
Women live longer than men, on average, and as a consequence spend a longer proportion of their lives above State Pension age. Without equalisation, in 2010, women would spend on average 41 per cent of their lives in retirement, compared to men at 31 per cent. Even after equalising women’s State Pension age with men’s, women will spend on average around two years more in receipt of their state pension because of their longer life expectancy. Women reaching 65 in 2018 are expected to live until 88.9 years, whilst the figure for men is 86.7 years.
The new State Pension is being introduced for those who reach State Pension age from April 2016. In the first ten years after implementation over 650,000 women will benefit from the new State Pension valuation of their National Insurance record, receiving on average £8 a week more in state pension. Around 75 per cent of women (and 70 per cent of men) who reach State Pension age under the new system in the first fifteen years will have a higher value State Pension when compared to the value of the State Pension they would have received under the old system. The new system will bring forward by a decade the point at which women have equivalent State Pension outcomes to men (by the early 2040s instead of the early 2050s).
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. For those who are unemployed, or unable to work, working age benefits are still available.
Asked by: Charlotte Leslie (Conservative - Bristol North West)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what the average financial cost is to an individual woman who has seen her state pension age increased by the maximum 18 months.
Answered by Justin Tomlinson - Minister of State (Department for Energy Security and Net Zero)
Women born between 6 December 1953 and 5 October 1954 will have their state pension age increased by the maximum 18 months.
It is not possible to assess the income of every individual due to their differing characteristics. The impact on a small number of hypothetical cases was modelled for the 2011 Pensions Act Impact Assessment.
These show how women born in 1954, affected by the maximum 18 months increase, could see their total state and private pension income change, compared to the previously legislated timetable.
Women who continue to work will also receive additional income from employment. It may also be possible for women to receive other working age benefits.
The impacts can be found in Table 8 of Annex A of the Impact Assessment at:
https://www.gov.uk/government/publications/pensions-act-2011-impact-assessment
The Department published analysis on the impact of the new State Pension (nSP) in January 2016 showing that three million women gain on average over £11pw extra State Pension by 2030:
On average women will still receive 10% more new State Pension than men over their lifetime.
The change in State Pension age is designed to equalise State Pension age between men and women and to remove a long standing inequality, while the new State Pension improves outcomes for women, bringing forward by a decade the point at which women have equivalent State Pension outcomes to men (by the early 2040s instead of the early-2050s).
Asked by: Holly Lynch (Labour - Halifax)
Question
To ask the Minister for Women and Equalities, what discussions she has had with her ministerial colleagues on the effect of the increase in the state pension age on women.
Answered by Shailesh Vara
Ministers regularly discuss matters of policy that span their responsibilities.
Reasonable mitigation for those worst affected by changes in State Pension age was introduced in 2011. A concession was made prior to the passing of the 2011 Act which reduced the delay that anyone would experience in claiming their State Pension, relative to the previous timetable, to 18 months. This concession was worth £1.1 billion in total.
This Government is committed to better outcomes for pensioners. However, the several billions of pounds that it would cost to make further policy changes in this area, that prolong the gender inequality in State Pension provision, cannot be justified.
Asked by: Mary Glindon (Labour - North Tyneside)
Question
To ask the Minister for Women and Equalities, what discussions she has had with her ministerial colleagues on the effect of the increase in the state pension age on women.
Answered by Shailesh Vara
Ministers regularly discuss matters of policy that span their responsibilities.
Reasonable mitigation for those worst affected by changes in State Pension age was introduced in 2011. A concession was made prior to the passing of the 2011 Act which reduced the delay that anyone would experience in claiming their State Pension, relative to the previous timetable, to 18 months. This concession was worth £1.1 billion in total.
This Government is committed to better outcomes for pensioners. However, the several billions of pounds that it would cost to make further policy changes in this area, that prolong the gender inequality in State Pension provision, cannot be justified.
Asked by: David Crausby (Labour - Bolton North East)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what steps the Government is taking to mitigate the effects of provisions of the Pensions Act 1995 and the Pensions Act 2011 on women born in the 1950s.
Answered by Justin Tomlinson - Minister of State (Department for Energy Security and Net Zero)
The Government will not be revisiting the State Pension age arrangements for women affected by the Pensions Act 1995 and Pensions Act 2011. These women will receive their State Pension either at the same age as men or earlier as we remove current gender timetable inequality.
The equalisation of State Pension age was necessary to meet the UK’s obligations under EU law to eliminate gender inequalities in social security provision. The Pensions Act 1995 contained legislation to equalise women’s State Pension age and, since April 2010, women’s State Pension age has been gradually increasing. Following sharp increases in life expectancy projections, and therefore the increase in the number of people living longer in retirement, this timetable was accelerated by the Pensions Act 2011.
A concession was made prior to the passing of the 2011 Act which reduced the delay that anyone would experience in claiming their State Pension, relative to the previous timetable, to 18 months. This concession 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, and the concession was worth around £1 billion in total.
Asked by: Gavin Newlands (Scottish National Party - Paisley and Renfrewshire North)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, if he will provide support for women who have been affected financially as a result of changes brought about by the Pension Act 2011.
Answered by Justin Tomlinson - Minister of State (Department for Energy Security and Net Zero)
The Government will not be revisiting the State Pension age arrangements for women affected by the Pensions Act 1995 and Pensions Act 2011. These women will receive their State Pension either at the same age as men or earlier as we remove current gender timetable inequality.
The equalisation of State Pension age was necessary to meet the UK’s obligations under EU law to eliminate gender inequalities in social security provision. The Pensions Act 1995 contained legislation to equalise women’s State Pension age and, since April 2010, women’s State Pension age has been gradually increasing. Following sharp increases in life expectancy projections, and therefore the increase in the number of people living longer in retirement, this timetable was accelerated by the Pensions Act 2011.
A concession was made prior to the passing of the 2011 Act which reduced the delay that anyone would experience in claiming their State Pension, relative to the previous timetable, to 18 months. This concession 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, and the concession was worth around £1 billion in total.