Pension Arrangements for Women

Oral Answers to Questions — Work and Pensions – in the House of Commons at 12:00 am on 9 October 2017.

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Photo of David Hanson David Hanson Labour, Delyn 12:00, 9 October 2017

What recent discussions he has had with the Chancellor of the Exchequer on improving pension transition arrangements for women born in the 1950s.

Photo of Patricia Gibson Patricia Gibson Shadow SNP Spokesperson (Consumer Affairs)

What recent discussions he has had with the Chancellor of the Exchequer on improving pension transition arrangements for women born in the 1950s.

Photo of Guy Opperman Guy Opperman The Parliamentary Under-Secretary of State for Work and Pensions

The Secretary of State has regular discussions with the Chancellor, but the Government will not be revisiting the state pension age arrangements for women born in the 1950s that are affected by the Pensions Acts of 1995, 2007 and 2011.

Photo of David Hanson David Hanson Labour, Delyn

My hon. Friend Carolyn Harris and I, Members of the Minister’s own party, and all Opposition parties in this House, including the Democratic Unionist party, have introduced a Bill, to be debated on 27 April, to provide for transitional arrangements to be put in place. Will the Minister support the Bill? If not, will he tell the House why not?

Photo of Guy Opperman Guy Opperman The Parliamentary Under-Secretary of State for Work and Pensions

I can only repeat the answer I just gave: the Government do not intend to revisit the state pension age arrangements for women born in the 1950s who are affected by the Pensions Acts of 1995, 2007 and 2011. The cost would be in excess of £70 billion.

Photo of Patricia Gibson Patricia Gibson Shadow SNP Spokesperson (Consumer Affairs)

The Minister will be aware that, following the Brexit vote, bond yields dropped by 30%, increasing the public sector pensions bill by a hefty 30% to £1.8 trillion over the last year. Is this latest example of Government ineptitude the real reason WASPI women are being ignored, penalised and denied their pensions?

Photo of Guy Opperman Guy Opperman The Parliamentary Under-Secretary of State for Work and Pensions

I am grateful to the hon. Lady for her question, but if her Government in Scotland disagree with any aspect of the UK Government’s welfare reforms, they have the powers to do something about it. I refer her to the letter of 22 June from Jeane Freeman, my opposite number, which specifically discusses the uses of Scotland Act powers to address individual cases.

Photo of Wendy Morton Wendy Morton Conservative, Aldridge-Brownhills

Will the Minister clarify whether, if the law on the state pension age were changed to favour women over men, it would be discriminatory or illegal?

Photo of Guy Opperman Guy Opperman The Parliamentary Under-Secretary of State for Work and Pensions

The reasons for the original changes were the changes in life expectancy and equality law. If the law proposed by Labour were to approach men and women differently, it would—with respect—be highly dubious as a matter of law.

Photo of Julian Knight Julian Knight Conservative, Solihull

Will the Minister further clarify that point? Labour says that the previous pension age could come back and that we could return to a situation where men are discriminated against. Does he agree that such discrimination might be profoundly against the law?

Photo of Guy Opperman Guy Opperman The Parliamentary Under-Secretary of State for Work and Pensions

Those who seek to make the case for such a law would need to satisfy themselves that men would not bring a case against the proposers, because it would unquestionably create a new inequality between men and women.

Photo of Alex Cunningham Alex Cunningham Shadow Minister (Work and Pensions) (Pensions)

The ombudsman’s first rulings on whether the Government are guilty of maladministration for failing to give 50s-born women sufficient notice of their earlier retirement age are due soon. Maladministration or not—it will take years to resolve that matter—can I ask the new Minister to take this back, think again, tell us what he is prepared to do, and what research he is prepared to do, to alleviate their misery, and perhaps even consider our proposals on pension credit and allowing them to retire up to two years earlier?

Photo of Guy Opperman Guy Opperman The Parliamentary Under-Secretary of State for Work and Pensions

The Government strongly believe that there has been no maladministration by the Department for Work and Pensions, including during the 13 years when Labour was in charge of the Department.

Photo of Andrew Bridgen Andrew Bridgen Conservative, North West Leicestershire

Is the new state pension not in fact removing injustices that have persisted for far too long, and are not the main beneficiaries women and low earners?

Photo of Guy Opperman Guy Opperman The Parliamentary Under-Secretary of State for Work and Pensions

My hon. Friend is correct. The new state pension is much more generous for the many women who were historically worse off under the old system. More than 3 million women stand to gain an average of £550 extra per year by 2030 as a result of these changes.