Public Service Pensions Bill Debate

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Department: HM Treasury

Public Service Pensions Bill

Lord King of Bridgwater Excerpts
Tuesday 12th February 2013

(11 years, 3 months ago)

Lords Chamber
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Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark
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My Lords, Clause 10 imposes a normal pension age of 60 on firefighters as well as on police and members of the Armed Forces. My amendment would build some flexibility into that but does not rule out 60 in respect of firefighters.

The Government, under the previous Fire Minister in the other place, set up a review, chaired by Dr Tony Williams. It published its report in January, just a couple of weeks ago. I think it is at best odd, and perhaps even outrageous, that the Government are pressing ahead here and are not taking the review properly into account. The report does not recommend a normal pension age of 60; nor does it make the case for firefighters working to 60. The review was set up to assess the appropriate normal pension age. Nowhere in the review does it say that 60 is appropriate. At most, the review’s recommendations establish a set of conditions —such as national firefighter fitness standards, fitness entry standards at recruitment, fitness training throughout careers, and an accepted testing regime—that would have to be met before working to 60 was possible.

The report provides medical evidence that working beyond 55 is not attainable by most current firefighters. Between half and two-thirds of current firefighters would not be fit enough to work beyond 55. Other figures in the report suggest that more like four out of five firefighters would not be fit enough to work beyond 55. The Government seem intent on imposing a national pension age of 60 despite the medical evidence against that. I hope that in his response today the Minister will explain fully why that is the case.

A national pension age of 60 will hugely disrupt the fire and rescue services. There is also a danger that it will not only discriminate against women but will drive out most women firefighters, undermining decades of equality work. A national pension age of 60 will not just remove the link to the occupational nature of the pension scheme; it will also risk making it unsustainable. With higher contributions, it will take a drop-out rate of only 7% to do so.

The Williams report recommended that firefighters over the age of 55 who can no longer meet the fitness requirement should be allowed to leave early on an actuarially reduced pension, calculated so there is no overall financial advantage or disadvantage to the firefighter. This means that most firefighters will get a reduced pension because the national pension age is wrong.

I want to move on to make some remarks about fitness. Aerobic fitness, one of the core components of fitness—along with anaerobic/high-intensity fitness and strength—is often measured using the rates of oxygen uptake, or VO2. The Williams report suggests that at least 42 VO2 is necessary for firefighting. This is the level recommended by experts in the field and is the level that the majority of fire services are using today. The report admits that at 50 to 54 years of age, 51% of firefighters are below the figure of 42 VO2. At the age of 55 to 60, that rises to 66%: two-thirds of firefighters are below that standard. The report suggests that if 42 is the standard, then by 60 years of age up to 92% of present firefighters could be below the minimum standard for operational duty. To push ahead with this is risky and dangerous.

The report suggests that, even in a best case scenario, where firefighters maintain their physical activity status, their body mass index and their smoking status as they age, at 55 years of age approximately 15% of firefighters would be below the minimum standard required for operational duty. By 60 years of age, this percentage would rise to 23%. However, this best case scenario model uses a higher entry standard than the one currently in force. It assumes that firefighters are recruited at 47 VO2, whereas actually the recruitment standard is much lower at 42. This means that the best case scenario is flawed as it assumes a much higher fitness level on recruitment than is in fact the case.

Will the noble Lord spell out clearly what kind of fitness regime and lifestyle changes will be necessary to meet this best case scenario? Most firefighters are likely to do fitness training at work of at least 30 minutes per shift; some do up to four hours a week. Does the noble Lord accept that what may be possible in the future, with new recruits and different standards, is fundamentally different from expecting people now in service to reach these service levels at ages between 55 and 60? It is risky and dangerous. If the noble Lord is not prepared to accept the amendment, can he tell the House why? The amendment commits the Government to do nothing other than accept that the national pension age must be set in scheme regulations and must be no more than 60. It allows for further discussions to take place, and if the Government are not persuaded, they can set the level at 60.

I had a meeting with the noble Lord. He very kindly met me and representatives of the Fire Brigades Union and I thank him very much for that. It was a very useful meeting and people put their case across very well. I appreciate that he did that. I hope that the Government will come back today with something positive.

Lord King of Bridgwater Portrait Lord King of Bridgwater
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I think that probably all noble Lords have had a most interesting letter from the general secretary of the Fire Brigades Union setting out the union’s case on this matter. I do not know whether I read it wrong, but I got the impression from the letter that there are safeguards to protect those who are approaching retirement age at the present time and that the issue arises much more for firefighters who are now 40 to 45. In those cases, when it is recognised that people are going to live longer and when the pension age may rise to 67 or higher, it seems that we are going to be looking for a different standard of fitness. It is quite difficult to argue in your Lordships’ House that nobody is fit any longer at 55.

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark
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I think the noble Lord is absolutely right that there is a difference in fitness. That is the problem. A regime could be put in place for people when they first come as recruits. By accepting my amendment, the Government could set the age in scheme regulations, whereas at the moment the age would normally be 60. I beg to move.