State Pension: Working-class Women

Robert Flello Excerpts

Thursday 9th February 2017 Westminster Hall

[Ian Blackford]

It is interesting that a Government Member is actually laughing about this, because that defines what the problem is. There are women who are really struggling, and the Government laugh. You should apologise and you should accept responsibility for this and stop demeaning the women—

[Robert Flello (in the Chair)]

Order. The word “you” refers to the occupant of the Chair.

[Ian Blackford]

I apologise, Mr Flello, but you can understand the anger that the women feel. A Member of Parliament on the Government Benches laughing when we are discussing this important issue is beneath contempt, and the Member should actually stand and apologise to the women who have been affected by this, rather than sitting there smugly as he is.

As I mentioned, it is no surprise that women were unaware of the changes because when the DWP commissioned research in 2004 it highlighted that only 2% of respondents mentioned that they had been notified of changes to the state pension age via a leaflet. Perhaps the hon. Member for Rugby (Mark Pawsey) wants to rise and try to defend that—quite frankly, it is indefensible. It is an insult that the Government at the time thought that changes affecting a woman’s retirement age could be dealt with by a leaflet. That is an abrogation of responsibility and each and every Member who refuses to do something is culpable.

We should all receive an annual statement from the DWP on our expected entitlement, just as we do from private pension providers. Why has that not been happening? Do the Government not know where we all live? [Laughter.] It is a fair question. Why were the women not written to? Why have we not had an answer to that question? Why did it take all the years that it did? The case is not defensible—it is shameful—and the way the Government still refuse to accept responsibility is shameful.

The failure to communicate was highlighted by a DWP publication in 2004 called “Public awareness of State Pension age equalisation”, which found that only 43% of all women affected by the increase in state pensionable age were aware of the impact on them. If the Government accept that women were not informed in a timely manner and therefore did not have time to react, why do the Government not accept their responsibilities?

We also know—you couldn’t make this up—that the Government sent out 17.8 million letters to men and women between May 2003 and November 2006 on automatic state pension forecasts but, wait for it, they did not contain any information about the state pension age. That is quite remarkable. Letters were written, but they were just the wrong letters—they did not have the important information. They said, “To find out more about the state pension age for women, please see ‘Pensions for women: your guide’. See page 10 for details on how you can get a copy of this guide.” That is no way to convey information. The Government should have communicated accurate, clear and transparent information. That was another massive failure to communicate.

At some point, rather than hand wringing, the Government have to take responsibility, because 2.6 million WASPI women have been let down. I am going to wind up because I realise that time is pressing. Research in 2011 by the English Longitudinal Study of Ageing found that by 2008 only 43% of women affected by the change were aware of it. Just think about this: over half of women who were expecting a pension at age 60 were going to be denied that. I cannot imagine the shock when they realised that they were not going to get what they thought was rightfully theirs. It is not the women who are at fault; they have paid in, expecting a pension. It is the Government who have let them down and it is the Government who have a moral and ethical responsibility to do something about it.

[Ian Blackford]

I will happily give way.

[Robert Flello (in the Chair)]

Order. May I gently suggest to hon. Members that, while I appreciate that there has been other business in the Chamber, we are on the wind-ups and Members really ought to be here for the debate rather than coming for the wind-ups? I will allow my hon. Friend a very brief intervention on this one occasion, because I am sure he has been in the Chamber previously up until now, but I remind Members that they really need to be in for the entirety of the debate.

[Mr Jim Cunningham]

I will be very brief. I apologise, Mr Flello; I was actually over in the Chamber because there were some important debates there as well and I cannot be in two places at once even if I would like to be. This is a timely debate because next month we will have the Budget. If the Chancellor can find billions for high-speed rail and other issues, surely he can find a couple of billion to give these women a decent life.

[Ian Blackford]

That is a very good point. We can find the money for high-speed rail. We can find, at the drop of a hat, £170 billion or more for Trident renewal. We are even due to debate the renewal of this place. If I were given a choice, I would want to make sure that the WASPI women were compensated and not that £7 billion was spent on reforming this place. That can wait, but the WASPI women need their money and they need it today.

The DWP told the Select Committee on Work and Pensions last year:

“Until 2009, direct communication with people affected by increases in state pension age was very limited.”

The Government must reflect on that and on the fact that women have not been properly informed. The Pensions Minister, in a parliamentary answer to me on 23 November last year, stated:

“The Government has committed not to change the legislation relating to State Pension age for those people who are within 10 years of reaching it. This provides these individuals with the certainty they need to plan for the future. We recognise the importance of ensuring people are aware of any changes to their State Pension age”.

We have put an option to the Government that is affordable and is about doing the right thing. The Government should agree with us. Frankly, I do not want to see any of us back here again. It really is about time that when the Minister rises today, she recognises the wrong that has been done. For the love of God, do something—do the right thing.

[Robert Flello (in the Chair)]

Order. May I remind the Front-Bench speakers that in 90-minute debates it is customary to make 10-minute speeches? I am being more generous because we are not so pushed for time, but 10 minutes is expected and not what we just had. Thank you.

--- Later in debate ---

[Ian Blackford]

On a point of order, Mr Flello. I suggest, with regret, that we have not actually discussed the motion in front of us today. Unless the Minister does that in the short time that she has available, when we come to the appropriate point in the debate I will have no option but to move that we have not considered this matter.

[Robert Flello (in the Chair)]

I am not totally convinced that that was a point of order. Let us see how the debate continues.

[Caroline Nokes]

I hope you will forgive me, Mr Flello, if I take the opportunity to ask you for some advice. Do I have another 18 minutes or so? I certainly have several pages still to get through.

[Robert Flello (in the Chair)]

Indeed, although I would like to be able to call the mover of the motion for a minute or so at the end.

[Caroline Nokes]

Sixteen minutes, then.

In addition, independent research by the Institute for Fiscal Studies has shown that employment rates for women aged 60 and 61 have increased as a direct result of the changes in state pension age.

--- Later in debate ---

[Ian Blackford]

On a point of order, Mr Flello. May I ask for your guidance on whether what we are hearing from the Government is indeed in order, given the subject of this debate?

[Robert Flello (in the Chair)]

Again, I do not think that that is a point of order; it is a matter for the debate.

[Caroline Nokes]

Hon. Members raised the increase in life expectancy. It has been experienced by all over the last few years, but it differs by occupation type—the hon. Member for Newcastle upon Tyne Central was certainly right to point that out. Women aged 65 who worked in higher managerial and professional occupations are expected to live more than three years longer than those in routine or manual roles; for men, that difference is greater, at four years. However, women in manual occupations have a similar life expectancy at 65 to men in professional occupations. Life expectancy also varies across regions—the hon. Lady was correct to point that out—but it would be wholly impractical to vary state pension age across the country.

The fuller working lives strategy aims to increase the retention, retraining and recruitment of older workers by bringing about a change in the perceptions and attitudes of employers and by challenging views of working in later life and retirement among individuals. As part of the strategy, the Government are taking account of the fact that people change jobs over their lifetimes. It is now extremely unusual for people to stay in one career throughout their entire working life.

--- Later in debate ---

[Caroline Nokes]

I am sorry that the hon. Gentleman has become so frustrated. He will be conscious that I could still fill another nine or 10 minutes or so. There are some very important points that I would like to make and I am sure that people will want to hear them. If he continues to chunter—[Interruption.]

[Robert Flello (in the Chair)]

Order. Continue, Minister.

[Caroline Nokes]

Thank you, Mr Flello.

As I was saying, that is why we continue to spend £90 billion a year on working-age benefits to assist those in this country who are unable to work. For those seeking work, people in receipt of working-age benefits can access a range of support from Jobcentre Plus and tailored support from the Work programme.

Specifically, the evidence is clear, and we as a Government are clear, that work is the best route out of poverty. That is why this Government’s approach has been about recognising the value and importance of work, to make work pay and to support people into work, while protecting the most vulnerable in society.

Our reforms are transforming lives. Today’s labour market statistics show that we continue to have a record number of people in work—over 2.7 million more than in 2010. The number of workless households is down by 865,000, and the percentage of households in the social sector where no one works has fallen from 49% to 38%, which is a decrease of nearly 350,000 households.

We have made a real difference for women, with more than 1 million more women in work since 2010 and the highest rate of female employment on record. The gender pay gap is also at its lowest level since records began, and there are now 1.2 million women-led small and medium-sized enterprises, which is more than ever before. We are rightly proud of our record but recognise that there is more to do.

We had to equalise state pension age to eliminate gender inequalities in social security provision—it is the right thing to do—and we had to accelerate this process due to increases in longevity, in order to protect the long-term sustainability of state pension provision in this country.

We know that whenever things change, there have to be dividing lines, and I understand that the changes are most stark for those closest to the line. That is no different in this case. We understand that and the Government listened to the concerns expressed at the time. Therefore, a concession worth more than £1 billion was introduced, despite the fiscal situation, to lessen the impact of the changes on those worst affected. The concession reduced the delay that anyone would experience in claiming their state pension and benefited almost a quarter of a million women.

However, going further than that simply cannot be justified, given that the underlying imperative must be to focus public resources on those most in need. I have listened to Opposition Members, and I have heard and understood their concerns. However, let me be clear—we are making no further concessions on this issue. As well as being unaffordable, reversing the Pensions Act 1995 would create an anomaly, whereby women would be expected to work for less time than they work now, and it would be discriminatory to men. It is not practical to implement.

John Cridland’s independent report on state pension age will consider wider factors that should—

[Chi Onwurah]

I certainly thank the Minister for finally coming to matters that are relevant to this debate and the people here. However, does she recognise the point that because the women we are discussing today started work earlier—at the age of 15, which is long before she or I started work—they are the generation who are working longer than any other generation? When she says that giving a further “concession” would mean that they ended up working for less time than other women, does she not recognise that they have worked, and are working, for longer?

[Robert Flello (in the Chair)]

Just before I call the Minister to continue, may I suggest that she perhaps speaks for only a couple more minutes?

[Caroline Nokes]

The hon. Lady also needs to reflect that these women are also living longer; we are all living longer.

As I was saying, the Cridland independent report is coming forward and will be published in March. It is part of the Government’s review of state pension age, which is due in early 2017.

[Caroline Nokes]

I will not give way again; the Chairman has made it very clear that he wants me to conclude my remarks.

A number of points have been made today about communications; in particular, the hon. Member for Ross, Skye and Lochaber has been quite forceful on this subject. He made the point that there were about 14 years between the decision being made and letters starting to go out. When he refers to “this Government”, I remind him that for the bulk of that time my party was not in Government, and if he wishes to lay the blame for a lack of communication, he might do well to direct it somewhere else.

We have continued this country’s long record of raising the living standards of pensioners, through our commitment to the triple lock and our reforms of the state pension, and we are revolutionising the world of private pensions through auto-enrolment, which is for everyone. However, we want continue our work aimed at providing older workers with greater choice and greater security in retirement, which is at the heart of our fuller working lives strategy. The results speak for themselves. We not only continue to increase the employment prospects for women above the age of 60 drastically, but the new state pension provides people with greater freedom and greater choice, and dignity in retirement.

[Robert Flello (in the Chair)]

I call Chi Onwurah to wind up the debate.