Draft Social Security (Contributions) (Amendment No. 2) Regulations 2022

Steve McCabe Excerpts

Monday 28th March 2022 General Committees

[Lucy Frazer]

I am happy to do that. As I mentioned, those women will be of an older generation, of an older age, but I am happy to get the specifics, if the hon. Gentleman wishes me to do so.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

Will the Minister tell me how many of the women who will see the increase are also women we might describe as WASPI—Women Against State Pension Inequality Campaign—women?

[Lucy Frazer]

The hon. Gentleman is right to point that out. It is a point that I have considered with my team. He is right that there will be an impact on some WASPI women. He knows that the decision on those women was a decision to equalise the state pension age. It dates back to 1995. That was the decision taken at that time on fairness, and fairness is the point that I am moving to now.

We need to ensure that the draft measure is fair across the board. Women who pay the reduced rate will benefit from the record investment in our NHS and social care system brought about by the new levy. Therefore, to exempt those paying the married women’s reduced rate from the health and social care levy would give them an unfair advantage compared with others.

I will briefly touch on the timeframe for introducing this draft instrument. I appreciate that the introduction of the measure is slightly delayed, such that we have had to accelerate our consideration of it. I reassure Members that we have written to both the Joint Committee on Statutory Instruments and the Secondary Legislation Scrutiny Committee to explain the reasons for the delay. The reason is that Her Majesty’s Revenue and Customs had previously identified a different legislative vehicle for this draft measure, but it turned out not to be a viable option.

--- Later in debate ---

[Brendan O'Hara]

I had not intended to speak; however, I hoped to intervene on the Minister, but she moved on elsewhere, so I have a couple of thoughts. Many of us—in fact, all of us—on the Opposition Benches think that national insurance is rather a blunt tool that affects the lowest paid and the youngest earners far more than anyone else. We can now include this small group of women.

The Minister talked about the health and social care levy, but there has been no great explanation or clear idea of how it will be used or passported through to social care services. She repeated the idea of fairness—it was almost a mantra—and that it is fair across the board, but this measure will hit a minuscule number of working women, whom she has already identified as being in the WASPI age group. To me, it seems grossly unfair to target that group of women again in this way. Does she believe that that group are being treated fairly? Could she say to the cohort of women in that age group that this Government have treated them fairly? Communication throughout the WASPI situation was utterly abysmal.

[Steve McCabe]

Given that this problem resulted from a Government error, which the Minister has said she fully intends to correct next year anyway, would this not be the perfect opportunity to make some restitution for the losses that the WASPI women have already experienced, by giving them a year’s grace on this Government error?

[Brendan O'Hara]

That is an excellent idea. I do not see why the Government would look to penalise this tiny number—a minuscule group, as the Minister said—once again. One might have hoped, having put them through the mill with such dreadful communication about why their pensions were being treated in the way they were, that the Government had learnt from that awful experience, but clearly they have not.