Transitional State Pension Arrangements for Women

Nic Dakin Excerpts

Wednesday 24th February 2016 Commons Chamber

[Mr Vara]

If hon. Members did not give mini speeches in the middle of my speech, I could reach my conclusions. I will answer the hon. Gentleman’s question in due course. We cannot look at the changes to women’s state pension age in isolation without acknowledging the significant changes in life expectancy in recent years, the huge progress made in opening up employment opportunities for women and the wider package of reforms. First, on life expectancy, the reason for all these significant reforms is that people are not just living longer but are staying healthy for longer. In just a decade, the length of time for which 65-year-olds will live in good health has surged by more than a year. That is welcome news, but it puts increasing pressure on the state pension scheme, and the Government—any Government—have a duty to ensure the sustainability of the state pension system. It would have been irresponsible for this Government, or the then coalition Government, to have ignored those developments.

[Nic Dakin (Scunthorpe) (Lab)]

Does the Minister agree that all Governments have the responsibility to be fair to the people of this country? Women are affected by the goal posts moving, and the benefits that they would get at retirement age have gone as well. This is a double whammy for that group of women who have worked hard all their lives.

[Mr Vara]

The Government have a duty to all their citizens, and they have to take difficult decisions and perform a balancing act. It is important to bear that in mind when people are talking about spending £30 billion-plus, or £77 billion. Those are serious sums of money, and difficult decisions have to be taken to achieve that balancing act.

--- Later in debate ---

[Nic Dakin (Scunthorpe) (Lab)]

Usually, when somebody says to me, “So-and-so is being a bit waspy,” it is a signal to tread with some care, so when I was told that a load of women who were concerned about this issue were coming to see me at my surgery on Friday, I trod with sufficient care. I was able to tell them that I spoke on Second Reading of the 2011 Act to point out that the women who left Foxhills comprehensive in my constituency in 1970 were the very women who would be affected, that it was not fair and that, frankly, there needed to be a better deal than two months’ transitional mudge.

I am aware that we are short of time, so I will just give a voice to those women. Marie Spikings said to me:

“My personal story began when I was 15 years old, leaving school at Easter with no qualifications. From the start of my working life at 15 years I paid a full National Insurance stamp believing that I was entering into a contract.”

That is a common belief. She continued:

“I understand the need for equality, however the 2011 Act has given me no time to prepare for working until I am 66! Not only have I lost thousands of pounds but also the benefits that come with the state pension e.g. heating allowance and bus pass etc.”

That is a key point about the other allowances, from which those women are now debarred. She told me:

“I am a single parent through no fault of my own. Day to day life is a struggle as I have a dependent child, and a disabled dependent adult child. I am tired and the thought of having to work for another 5 years is daunting to say the least.”

Christine said to me: “I feel trapped.” Her choices have been taken away from her.

Annette said to me:

“I was born in May 1954 and my state pension date has been moved twice, the first time I was informed in writing that it was changing from my 60th birthday to my 64th year. Since then I had heard nothing until someone told me to check the website by entering my DOB. The date for my state pension then came up as January 2021 another 18 months on. I am sure you will agree this is completely unfair”.

That is an example of the poor communication that we have heard about. Another woman pointed out to me that her older sister, who was born in April 1952, has already received her state pension. The woman who wrote to me is 22 months younger than her sister and has to wait an extra five years and five months—not fair and not reasonable. I could go on to give many similar examples.

[Christina Rees (Neath) (Lab)]

There are 3,540 women affected by the changes in my constituency. Does my hon. Friend agree that the 1995 changes were reasonably well communicated, but the 2011 changes were badly communicated? Some women who are affected by the 1995 changes were also affected by the 2011 changes, which compounded the issue.

[Nic Dakin]

My hon. Friend has it spot on. Communication, as the hon. Member for Weaver Vale (Graham Evans) said, is one of the issues at the heart of the matter. What happened in 2011 compounded what had happened previously, and the situation is totally unfair.

The debate has been quite good since we got to the Back-Bench speeches, although my hon. Friend the Member for Pontypridd (Owen Smith) did a good job of kicking things off. I welcome the comments of the hon. Member for Blackpool North and Cleveleys (Paul Maynard), who drew attention to my hon. Friend’s six suggestions and said that they were a good starting point. The hon. Member for East Worthing and Shoreham (Tim Loughton) said that there was a deal to be done, and I think he is right. The hon. Members for Salisbury (John Glen) and for Mid Bedfordshire (Nadine Dorries) encouraged Ministers to find a way to put right the injustices.

The women we are talking about are not asking for the world. They are not even asking for the things that some people have suggested that they are asking for. They are simply asking for a reasonable settlement and a reasonable deal, which is what they deserve.