Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps he is taking to close the gender pension gap.

The gender pension gap is a complex issue tied to the labour market, the private pensions system and demographic differences, but one the government takes very seriously. Addressing the gender pensions gap will only be possible through the collective effort of government, employers and industry.

The new State Pension was designed to correct some of the historic unfairness in the previous system, in particular for women. Our reforms are working, under the pre-2016 system women receive 85% of the amount received by men. This is currently 97% under the new State Pension.

Automatic enrolment (AE) has helped millions more women to save into a pension, with pension participation rates among eligible women in the private sector rising from 40% in 2012 to 86% in 2022. The government is committed to build on this success and is making progress on implementing the measures as set out in the 2017 review of AE. The Pensions (Extension of Automatic Enrolment) Act 2023 was introduced into Parliament with government support and provides the necessary powers.

Once implemented, the measures will disproportionately increase the pension saving of lower earners; a woman working part-time earning National Living Wage could see her pension almost double as a result when saving over her career.

Our labour market policies will also help. Working parents will soon be even better supported through the extension of free childcare announced in the Spring budget in 2023. DWP also announced generous additional financial help to encourage and support lead carers of children who are receiving Universal Credit to move into or progress in work.

By 2027-28, the Government will expect to be spending in excess of £8bn every year on free childcare hours and early education, helping working families with their childcare costs. This represents the single biggest investment in childcare in England ever.

And we are working with stakeholders across government to better understand the challenge of the gender pension gap. In June, DWP published an official measure of this wealth gap, which is currently 35% between men and women shortly before they retire. The wealth gap between men and women who are eligible for automatic enrolment is lower, at 32%.

The publication of an official annual measure will help us track the collective efforts of government, industry and employers to reduce the Gender Pension Gap.