State Pension Age: Women

Vicky Ford Excerpts

Wednesday 29th November 2017 Commons Chamber

[Guy Opperman]

I will not give way any more, because I am conscious that 20 Members wish to speak.

Automatic enrolment was introduced in 2012 on a cross-party basis after a considerable amount of time. The important point is that the overall participation in workplace pensions of eligible female employees in 2012 was 58% but, following the introduction of automatic enrolment, the figure increased to 80% in 2016. For males, the figure increased from 52% to 76% in the same period. The private sector has seen the largest increase in participation in workplace pensions, and there was no gender gap in participation rates in 2016.

In the circumstances, I would respectfully point out that the key choice a Government face when seeking to control state pension spend is whether to increase the state pension age or to pay lower pensions, with an inevitable impact on pensioner poverty. The only alternative is to ask the working generation to pay an even larger share of their income to support pensions.

[Vicky Ford (Chelmsford) (Con)]

Will my hon. Friend give way?

[Guy Opperman]

I am not going to give way again—I am so sorry.

While increasing longevity is something to be celebrated, we must also be realistic about the demographic and fiscal challenges it creates for us as a society. Since the early 2000s, it has been widely recognised that we face big questions as a society about how we ensure economic security for people in retirement, while maintaining fairness between generations.

The Pensions Commission found in 2005 that a state pension age fixed at 65 was no longer sustainable or affordable. Between 2007 and 2014, three separate Acts of Parliament were introduced, each responding to changes in life expectancy by changing the state pension age. At the same time, the state pension has been increased, between 2010 and 2017, by £1,250 a year for an individual who is on a full state pension.

So with increasing financial pressures, as I have described, we cannot change a policy that has been implemented for over 22 years and supported by all three major political parties. The Government have to ensure that the costs of an ageing population are shared out fairly, without placing an unfair financial burden on future generations.

--- Later in debate ---

[Vicky Ford (Chelmsford) (Con)]

It is a great honour to speak in the debate on this important issue on behalf of the many WASPI women of Chelmsford who have been to visit me, especially the lovely Cheryl Lucas, who speaks with great calm and compassion on the issue. I have deep respect for them and for the situation they find themselves in. Many of these women have worked for many years and paid their taxes and national insurance contributions. They have told me how they had made plans based on the expectation that they would retire on a certain date, only for that date to be changed. Some of them genuinely feel that they were not consulted or made aware of the change of date. Others had retired early in anticipation—

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

The hon. Lady is putting her case very well. Is this not why it is such an insult to suggest to older women that things will be fine if they go out and get an apprenticeship?

[Vicky Ford]

Let me carry on with my point, because I would dearly love to help the WASPI women in my constituency who find themselves in this situation.

I look at the statistics, and as a mathematician, I remember looking at life expectancy a few years ago. My mother is 30 years older than I am, and my daughter is 30 years younger than I am. Of my mother’s age group—those born in 1937—6% will live to 100. For my age group, 16% will live to 100. In my daughter’s age group, it is 26%. We are all living longer, and we all therefore need to work longer. That is why successive Labour and Conservative Governments have been right to take measures to change the pension age.

I have thought about what more we could do to help the women who have been affected. If we give them additional financial or tax benefits, what then do I say to women like me who were born in the 1960s? Why should a woman born in 1959 get an additional benefit, but not the woman born in 1960? I have championed equality all my life, so what do I say to the men when the women get an additional benefit? What do I say to my daughter’s generation, who are struggling with student debt and struggling to get on the housing ladder? They can see that they may never have anything like the workplace pensions that we have had.

The jobs that the WASPI women have been doing in the past may often not be jobs that they want to continue doing into their 60s and may not suit them, which is why it is so important that we champion opportunities for some of our older workers—people in their 50s, like myself, and people in their 60s. We should go out and tell employers that these women are fantastic and can really add value. For those who have genuine problems, we must be faster in getting support to them. I was contacted by a WASPI woman just this week who has cancer and needs support, so we need to be quicker. I understand why the Government cannot write a blank cheque, but please let us find some support.