Transitional State Pension Arrangements for Women — House of Commons, 2016-02-24
Topic: Labor
Graham Evans (Conservative, Centre-right): The need for equalisation of the state pension age is evident. We have an ageing population. People are living healthier, longer lives, with an ever-greater proportion of the population drawing a pension while an ever-smaller proportion are contributing through national insurance. Without equalisation, the system risks becoming increasingly difficult to afford. At my help and advice surgery in Frodsham last month, a constituent of mine, Barbara, came to speak to me about this issue. Barbara is 59, turning 60 this year, and she had been expecting to retire at 62. It was not until recently that she realised she would have to wait until she was 66 to retire. The majority of the anger at these changes lies in the lack of notification Following the changes of 1995, the DWP issued a leaflet, among other press and publicity measures, including direct mail, to advise the public of those changes. In 2004, it ran an information campaign, distributing over 2 million pension information guides, alongside adverts in the press and women’s magazines, to complement an interactive online state pension age calculator. In addition, all state pension statements issued from 2001 included the new state pension age, as determined by the 1995 changes, as standard. Since then, over 11 million statements have been issued. Those affected by the 2011 changes were written to directly. This involved sending out more than 5 million letters between January 2012 and November 2013. I note that for those of us due to retire at 65, within the past three years the age has gone from 65 to 66, and it is now 67 for men and women born in the 1960s and onwards. Had those efforts been fully successful, however, we would probably not be here now debating this subject, and I believe that this is the fourth debate we have had on it in as many months The WASPI campaign has called on the Government "to put all women in their 50’s affected by the changes to their state pension in exactly the same financial position they would have been in had they been born on or before 5 April 1950." Those who plan towards their retirement want to live the retirement they planned for. Following the 2011 changes, the Government passed an amendment to the legislation that provided £1.1 billion of transitional funding and delayed the equalisation of the state pension age, on top of bringing the new state pension forward by a full year. However, undoing the 2011 changes would cost £30 billion, in addition to a loss of £8 billion in tax revenue, and undoing the 1995 changes would cost several times that—£70 billion plus. The new state pension, which has been brought forward by a year, will come into effect in April this year. It will see many woman significantly better off than they would have been under the old system, with £416 a year more than they would have had. Likewise, the introduction of the triple lock, which ensures that the state pension goes up by whichever is highest of inflation, wages or 2.5% means that the basic state pension will be over £1,100 higher than it was at the start of the previous Parliament The lesson to be learned by Governments of all colours is that of effective communication. Pensions are complicated at the best of times, and I have a huge amount of sympathy with that. I believe that it is the fault of Governments of all colours, not just the Conservative Government. WASPI women will receive an improved pension before the men and women who will now retire at the age of 67. WASPI women will live longer, on average, than men. The Government’s pension reforms are fair for those who receive them and for the younger generation who will have to pay for them.