Women's Pension Inequality

Oral Answers to Questions — Minister for Women – in the House of Commons at 10:30 am on 1 December 2005.

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Photo of Lynda Waltho Lynda Waltho PPS (Mr David Hanson, Minister of State), Northern Ireland Office 10:30, 1 December 2005

What steps the Government are taking to tackle women's pension inequality.

Photo of Tessa Jowell Tessa Jowell The Secretary of State for Culture, Media and Sport

Earlier this month, we published the report "Women and Pensions: The Evidence". The evidence tells us that men and women will reach the age of 65 with similar basic state pensions by 2025, when the average entitlement to a full basic state pension among both sexes will be more than 90 per cent. That is marked progress on the present situation and reflects the greater number of women in work. We will consider that evidence together, obviously, with the recommendations of Adair Turner's Pensions Commission to ensure that our policy proposals lead to fairer outcomes for women.

Photo of Lynda Waltho Lynda Waltho PPS (Mr David Hanson, Minister of State), Northern Ireland Office

As my right hon. Friend knows, women make up two thirds of pensioners, but their income in retirement is less than two thirds of that of men. Indeed, recent Department for Work and Pensions figures show that 2.2 million women do not qualify for a basic state pension. In the light of yesterday's Turner report and with tomorrow being carers' rights day, will she go further and confirm that the Government will closely examine the Turner recommendations to make sure that we deliver a pensions system that finally offers everyone the chance of a decent income in retirement, recognising that if we get it right for women, we get it right for everybody?

Photo of Tessa Jowell Tessa Jowell The Secretary of State for Culture, Media and Sport

I thank my hon. Friend for the way in which she has campaigned to focus attention on the issue. I am sure that she welcomes the fact that 1.9 million female carers have been helped by the second state pension and that 63 per cent. of the 5.8 million low earners who benefit are female.

Photo of Sandra Gidley Sandra Gidley Women & Older People, Non-Departmental & Cross Departmental Responsibilities

The Minister will be aware that the Turner report includes the recommendation that women over 75 should receive a full pension. Although that recommendation is welcome, does she agree that she would be better advised to consider the Liberal Democrat proposal of a citizens pension for all women of retirement age?

Photo of Tessa Jowell Tessa Jowell The Secretary of State for Culture, Media and Sport

It is always worth, albeit briefly, considering a Liberal Democrat proposal. The position of women over 75 will be a material consideration in deciding how to take forward the recommendations in Lord Turner's report.

Photo of Barry Sheerman Barry Sheerman Chair, Education & Skills Committee, Chair, Education & Skills Committee

Does my right hon. Friend agree that the percentage of women coming into work has reached a plateau? If we are to achieve a successful economy and get the next surge of women entering the marketplace and becoming productive members of our community, we need a package for women that encompasses not only pensions, but pay and child care.

Photo of Tessa Jowell Tessa Jowell The Secretary of State for Culture, Media and Sport

If one considers full time and part time, the number of women entering work is actually increasing. My hon. Friend is right that if we are to see a sustained increase in the number of women who choose to return to work, it is important to ensure the implementation of child care and other measures that promote the flexibility that women need, if they are to combine looking after a family with being at work.

Photo of Eleanor Laing Eleanor Laing Shadow Secretary of State for Scotland

I agree with the Minister that this is very important. I welcome what Lord Turner said yesterday, especially his particular attention to women and his stressing of the importance of flexibility for parents and carers in the work force and thereby in the provision of pensions. Unfortunately, however, the right hon. Lady will not take these decisions. She appreciates the difficulties of millions of women, but the Chancellor

Photo of Eleanor Laing Eleanor Laing Shadow Secretary of State for Scotland

What will the right hon. Lady do to make the Chancellor see sense in this respect so that he appreciates the problem, stops rubbishing the Turner report, and does something for women pensioners?

Photo of Tessa Jowell Tessa Jowell The Secretary of State for Culture, Media and Sport

The position was clearly set out yesterday by the Prime Minister and the Work and Pensions Secretary. We will consider the Turner recommendations as a Government. We will take account of the pressing importance of meeting the needs of women, in particular, that arise from the necessity for flexibility in the currently inflexible pensions system, and ensure that we have a set of proposals for women that are sustainable. These decisions will be taken by the whole Government.

Photo of Phyllis Starkey Phyllis Starkey Labour, Milton Keynes South West

In a forum on women's pensions that was organised in early November in Milton Keynes with my local chamber of commerce, the view was strongly expressed that there needs to be a universal basic state pension available on the basis of residence, as suggested by Turner, if women are to benefit in future. Will my right hon. Friend take that message forward very strongly to her fellow Ministers to ensure that that is incorporated?

Photo of Tessa Jowell Tessa Jowell The Secretary of State for Culture, Media and Sport

My hon. Friend is absolutely right. That aspect of Turner's recommendations is potentially particularly beneficial to women. It is one of the proposals that will be looked at very closely because of the importance of securing a pensions settlement that recognises the age-old inequality of the system in relation to women.