State Pension Age for Women Debate

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Department: Department for Work and Pensions
Wednesday 5th July 2017

(6 years, 8 months ago)

Westminster Hall
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Grahame Morris Portrait Grahame Morris
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I am grateful for that intervention; indeed, every constituency is affected. I believe my hon. Friend the Member for Jarrow (Mr Hepburn) said that 4,000 women are affected in his constituency; almost 5,000 are affected in my constituency of Easington. The women deserve both recognition of the injustice that they have suffered and some kind of financial help to alleviate the poverty that many of them are now suffering. I know that we are short of time, but I have heard some harrowing stories from women who have worked all their lives and now, through change of circumstance, have found themselves in the dire situation of having to sell their homes. They are facing enormous financial pressures because of changes in legislation that they were not aware of. That really needs to be put right.

The Labour party intends to extend our commitment to pension credit to hundreds of thousands of the most vulnerable women. I know that my hon. Friend the Member for Stockton North (Alex Cunningham) will go into a little more detail about exploring the options for further transitional protections to ensure that all the women have security and dignity in old age.

Grahame Morris Portrait Grahame Morris
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I will give way, Sir Edward, but just because it is the Minister.

Guy Opperman Portrait Guy Opperman
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I accept that I am to be brief, Sir Edward. I want to clarify the hon. Gentleman’s position. I looked at his blog from June 2016, which maintained that the Pensions Act 1995

“timescales were such that they gave sufficient time for people to plan”.

The impression from that blog is that the hon. Gentleman had no criticism of the Act. Is that still the case?

Grahame Morris Portrait Grahame Morris
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I do not think that is necessarily a fair reflection. The changes were accelerated in 2011 and, for the record, I do not think that women were given adequate time. In fact, they were not given individual notification that the legislation had changed, and I think that Parliament and Government had a duty to notify all those affected at the earliest opportunity.

--- Later in debate ---
Guy Opperman Portrait The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)
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We are from different sides of the political fence, but the hon. Member for Easington (Grahame Morris) and I are united by one key thing: we have both beaten cancer. I would like to start by saying how pleased I am to see my fellow tumour survivor back in his place. I wish him well with his future treatment. He can imagine my joy when, on day three of my new job as Minister for Pensions and Financial Inclusion, I was told that he had secured a debate on women’s state pensions—the first debate I would have to answer here in this House.

Jo Swinson Portrait Jo Swinson
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Will the Minister give way?

Guy Opperman Portrait Guy Opperman
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Not yet, no—I am not going to. All of us here, as constituency MPs, have met women who have been affected by the state pension age rises. I have met them ever since my election as Member of Parliament for Hexham in 2010, and during the passage of the 2011 Act. Whether they are affiliated to the WASPI campaign or not, I have seen them in and out of my surgeries, like all colleagues have done. Like many, I have answered correspondence on the issue. I make it clear that I will be delighted to meet the all-party parliamentary group when it is re-formed, as I am sure it will be, and will be in a position to sit down with them to discuss their ongoing situations.

The hon. Member for Paisley and Renfrewshire South (Mhairi Black) said that she expected me to speak only about the 1995 Act, the 2011 Act, all the transitional arrangements and so on. I accept, and she will understand, that I have to make the case on those matters, not least because of what has been said, but I want this debate to be done in a different way. I want to say two things at the outset.

If individual Members of Parliament have specific cases where they feel their individual constituents are affected by state pension age changes and find themselves in financial hardship, whether they are people who have to reduce their hours because of sickness, disability or caring responsibility, I and the London DWP team will look into those individual cases. As Members pass them on to us, we will do what we can to provide assistance, whether that is understanding of the availability of carer’s allowance, housing benefit, tax credits, income support, employment and support allowance or other benefits. However, the essence of what I want to address the House on is this.

Melanie Onn Portrait Melanie Onn (Great Grimsby) (Lab)
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Will the Minister give way?

Guy Opperman Portrait Guy Opperman
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No, I will not. It is not the Government’s position that we will make further concessions by the 1995 or 2011 Acts. The fundamental point—at this point I really wish to address the hon. Member for Paisley and Renfrewshire South—is that the Government have done a massive amount on a progressive basis to get people back into employment or retraining in their pre-pension years.

First, we created, and we have now extended, a network of older claimant champions in all 34 Jobcentre Plus districts in the country. The champions work with Jobcentre work coaches to provide advice and best practice on skills provision, digital and social support and job-search support, which leads into the “Fuller Working Lives” strategy issued by the Government on a cross-Government basis in February this year.

Secondly, we have committed massively to lifelong learning. The reality is that more than 200,000 people aged over 60 have entered further education since 2014-15. [Interruption.]

Edward Leigh Portrait Sir Edward Leigh (in the Chair)
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Order. Everybody else was heard in silence, so let us please listen to the Minister.

Guy Opperman Portrait Guy Opperman
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Thirdly, we have also extended apprenticeship opportunities—one of the best routes into skilled employment—for people of all ages and gender. For example, in England in 2014 to 2015, 12% of those starting apprenticeships were aged over 45.

Carolyn Harris Portrait Carolyn Harris
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Will the Minister give way?

Guy Opperman Portrait Guy Opperman
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I am going to set out these matters; please bear with me. In the 2017 Budget, the Chancellor allocated £5 million to increase the number of returnship schemes. We are working with employers across the public and private sectors to understand how returners can be supported back into permanent employment, building on successful examples run by companies such as Centrica.

I realise it is not going down well, but the point I am trying to make is that the Government are actually doing a significant amount to address the individual difficulties for those persons attempting to enter the labour market. Last year, the Government appointed Andy Briggs, CEO of Aviva, as the dedicated business champion for older workers, to spearhead work with employers on a business-to-business basis. I met Mr Briggs two days ago. He is clearly passionate about his mission to persuade employers to increase the number of older workers they employ by 12% by 2022. [Interruption.]

Edward Leigh Portrait Sir Edward Leigh (in the Chair)
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Order. The Minister is entitled to give way or not.

Edward Leigh Portrait Sir Edward Leigh (in the Chair)
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The hon. Gentleman is very experienced and knows that that is not for me.

Guy Opperman Portrait Guy Opperman
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In May 2017, Mr Briggs launched the “Commit and Publish” campaign, challenging employers to monitor the age of their workforce and publish figures by the end of 2017. A significant number of companies have already bought into that, including Aviva, Barclays and the Co-op. I assure colleagues that I will be assisting Mr Briggs in pursuing that campaign with all the rigour that I brought to my campaign for the introduction of the living wage.

In February 2017, the “Fuller Working Lives” strategy was launched on a cross-Government basis. I urge colleagues to read it, because if we are frank, an assertion has been made in the debate that the Government are doing nothing to try and encourage persons who are prior to pensionable age into employment. There are a number of different matters, which I have set out, and those are particularly set out in the “Fuller Working Lives” strategy.

George Howarth Portrait Mr George Howarth (Knowsley) (Lab)
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Will the Minister give way?

Guy Opperman Portrait Guy Opperman
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I will not, because I have a lot of points to make. The strategy aims to increase the retention, retraining and recruitment of older workers, and bring about a change in employers’ perceptions and attitudes—surely something that we would all endorse and wish for. We know that many people approaching the state pension age want to continue working or would like to be in work, and we have changed the law to abolish the default retirement age. I do urge colleagues to read the strategy.

After extensive debate, the 1995 Act changed the 55-year-old status quo by equalising pension ages for men and women at 65, with that change taking place between 2010 and 2020, depending on age. That statute was debated at length, and the changes were then the subject of widespread advertising, debate, leaflets, letters and 16 million state pension forecasts.

I am not here to criticise the 1995 to 1997 Conservative Government, nor the 1997 to 2010 Labour Government; I suggest that they made real efforts to communicate the change passed by Parliament in 1995. I rely in support of that on what the hon. Member for Easington said when he wrote of the 1995 Act in his blog in June 2016:

“The timescales were such that they gave sufficient time for people to plan for their new circumstances, and legislation was already in place that would have seen the equalised State Pension Age rise…in gradual stages”.

Grahame Morris Portrait Grahame Morris
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I ask the Minister to recognise that the issue was not the timescale; everyone agrees that 15 years is enough time. I was trying to highlight in my blog that the individuals were not given notice.

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Guy Opperman Portrait Guy Opperman
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With great respect to the hon. Gentleman, the whole thrust of what he said in June 2016 was that there was no objection to the 1995 Act, due to the passage of time. He has now changed that position. I am only pointing out that the 1995 Act had a 15-year time limit. He knows full well that that is the case, and that that was his position at the time.

Sixteen years later, the coalition Government changed the approach in the Pensions Act 2011. The change was in a context where the impact of the post-war baby boom years is clearly still being felt. The number of pensioners is going up dramatically; notwithstanding any of the changes made by the 1995 and 2011 Acts, there will be around 25% more pensioners in 2050 than today. That is an extra 4.5 million pensioners compared with now.

Life expectancy has increased massively. In 1940, Government policy making indicated a retirement age at 60, and our forebears looked at a life expectancy of three score years and 10. Those days are long gone. A girl born today has an average life expectancy of 93. Those changes in life expectancies are significant, and the reality cannot be ignored. It is not ignored, and is set out in greater detail in the Cridland report, which looks at the future situation in relation to long-term pension age changes.

Carolyn Harris Portrait Carolyn Harris
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Will the Minister give way?

Guy Opperman Portrait Guy Opperman
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I have a minute and a half to finish, so I will culminate on this point. In 2011, there was extensive debate on those changes in the House of Commons. The matter was debated on a number of occasions between February and November 2011 in both the Commons and the Lords. Subsequently, the Department for Work and Pensions and the coalition Government made efforts to notify those affected, with 5 million letters sent out and a range of information provided, to make individuals aware of their state pension age.

I will make three final points. In relation to the transitional provisions, it is the case that the position was different in the original 2011 Act. Following extensive parliamentary debate in both the Commons and the Lords, that Act was changed such that no woman affected by the 2011 Act would have to wait more than 18 months from the date that they might have been expecting their pension. For some, the time will be much less. I also make the point that the new state pension introduced in 2016 is better and much more generous for many women than that which existed under the old system.

I congratulate the hon. Member for Easington on securing the debate. It is not the Government’s proposal to repeal or ameliorate the 1995 or 2011 Acts, but I accept that we must do all we can to assist everyone affected into retraining and employment, and to provide support if that is not possible. The commitment to provide support is clear, unequivocal and ongoing.