State Pension Age (Women)

Alison Thewliss Excerpts

Thursday 7th January 2016 Commons Chamber

[Huw Merriman (Bexhill and Battle) (Con)]

I congratulate the hon. Members for Paisley and Renfrewshire South (Mhairi Black) and for Worsley and Eccles South (Barbara Keeley) on securing this debate.

In the past few months, I have met a number of my constituents who have been impacted by these changes. These constituents have detailed how the state pension age increases have had an impact on them owing to their being on the wrong side of the dateline. I have every sympathy with anyone impacted by these changes, and I can see why they have felt so much frustration. I congratulate the WASPI campaign on driving this debate.

Although it is true that any criteria changes regarding pensions, benefits or taxation in general are always going to have an impact on some people, I am conscious that the individuals we are talking about have, in many circumstances, worked for decades on the basis that they would receive their pensions at a prescribed time. However, I am also conscious of the fact that when actuaries calculated life expectancy, and therefore the number of years for which a pension would pay out, they did not expect it to reach the level currently enjoyed, and they would not have anticipated the current rising levels of health. These factors have driven successive Governments, and most OECD nations, to increase the pension age.

[Alison Thewliss (Glasgow Central) (SNP)]

Does the hon. Gentleman not however accept that life expectancy is not the same for everybody everywhere? There are places in Glasgow where life expectancy is significantly lower than in other parts of the country.

--- Later in debate ---

[Gavin Newlands]

I am pleased my hon. Friend has made that point for me. Given the time limit, I had to delete that section of my speech.

Hard-working men and women have paid into the system expecting, in good faith, the state to help to support their retirement. The combination of equalisation and increasing the pension age has been devastating for some women.

As I have said, WASPI has no problems with the principle of the policy; rather, it has problems with its implementation. These rapid and rushed changes have had a significant impact on a large group of women: 2.6 million women, if we accept the Department for Work and Pensions estimates. The changes have meant that some women may have to wait an additional six years to receive a state pension. From the first day of their working lives, these women have been advised to plan accordingly. At the very last minute, the Government have altered the plans that these women have had for years. This, in essence, is why the women affected feel deeply aggrieved and betrayed by the actions of subsequent Governments.

The Secretary of State for Work and Pensions, in answer to my written question on the communication of the changes to the pension age entitlement, replied that the DWP wrote to all individuals directly affected to inform them of the changes to their state pension age. However, from speaking to WASPI and local constituents this does not appear to have happened on the scale or to the degree that the Secretary of State indicated. I have spoken with women affected. They have said they received the DWP letter far too late, with only a few months’ notice of the increase in the pension age. I have also heard of letters sent to wrong addresses. In one case, unfortunately, a constituent who came to my surgery—another is coming in tomorrow—had no knowledge whatever of the changes.

It has come to light that the UK Government informed a large number of women affected only 14 years after the changes were made.

[Alison Thewliss]

Does my hon. Friend agree that there has almost been some maladministration? I have just heard from my constituent, Susan Casey, who received a letter when she turned 50 to say that her retirement age would be in 2014. She was born in 1954. It is most unfair not only that she has been losing out, but that she has been misinformed.

[Gavin Newlands]

Absolutely. This seems to have happened to a whole a catalogue of women. It is an absolute disgrace.

We encourage individuals to plan for the future, but if during their working lives the Government make changes to the state pension, it is only appropriate and fair that the Government communicate them adequately to allow people to re-plan financially for their retirement. I phoned one of my constituents yesterday and asked her how she would like the Government to respond to this issue. Her request was simple: she wants the Government to accept that they made a mistake with how hard and how fast the changes were introduced. That should not be a difficult concession for the Government to make, as the previous Pensions Minister himself has already accepted that mistakes were made.

It is important for the Government to learn from the mistakes they have made and to review how the changes were introduced. We need clearer channels of communication between the DWP and individuals when it comes to pensions. I hear all too often that the information the DWP sends out is confusing and unclear. I would ask that the current Government sit down with WASPI and consider ameliorating some of the financial stress that the changes have brought, and perhaps extend the timeframe.

We know the problem. We cannot sit idly by and allow cack-handed policy implementation from subsequent UK Governments to devastate the lives of so many people who have worked so hard for so long. The Government cannot shirk their obligations. They must accept responsibility, apologise and correct this as a matter of urgency. Ignorance will simply not suffice.