PARLIAMENTARY DEBATE
Women’s State Pension Age - 25 March 2024 (Commons/Commons Chamber)
Debate Detail
I recognise the strength of feeling on this issue, and it is important to set out the wider context and our initial understanding of the report itself. The fact that it has taken over five years for the ombudsman to produce the final report reflects the complexity of this matter. The period that the investigation considers spans around 30 years, dating back to the decision that Parliament took in 1995 to equalise the state pension age for men and women gradually from 2010. Since then, changes have been made through a series of Acts of Parliament introduced by successive Governments, which resulted in the state pension age for women rising to 65 by November 2018, and then to 66 by October 2020.
The announcement in 1993 about equalising the state pension age addressed a long-standing inequality between men and women. The changes were about maintaining the right balance between the sustainability of the state pension, fairness between generations and ensuring a dignified retirement in later life. Women retiring today can still expect to receive the state pension for more than 21 years on average—over two years longer than for men. Had the Government not equalised the state pension age, women would have been retiring today at 60, and they could have spent, on average, over 40% of their adult lives in receipt of the state pension. That would have been unfair, because, by the 1990s, life expectancy had significantly increased compared with 1948, when the state pension age for women was set at 60.
Turning to the investigation itself, it is important to be clear about what the ombudsman has not said, particularly following some of the inaccurate and misleading commentary since the report was published. The ombudsman has looked not at the decision to equalise the state pension age, but at how that decision was communicated by the Department for Work and Pensions. The report hinges on the Department’s decisions over a narrow period between 2005 and 2007, and on the effect of those decisions on individual notifications. The ombudsman has not found that women have directly lost out financially as a result of DWP’s actions. The report states:
“We do not find that it”—
meaning DWP’s communication—resulted in the complainants
“suffering direct financial loss”.
The final report has not said that all women born in the 1950s will have been adversely impacted, as many women were aware that the state pension age had changed.
In his stage 1 report, the ombudsman found that
“between 1995 and 2004, DWP’s communication of changes to State Pension age reflected the standards we would expect it to meet.”
The report also confirms that accurate information about changes to the state pension age was publicly available in leaflets, through DWP’s pension education campaigns, through DWP’s agencies, and on its website. However, when considering the DWP’s actions between August 2005 and December 2007, the ombudsman came to the view that those actions resulted in 1950s-born women receiving individual notice later than they might, had different decisions been made.
It is important to remember that during the course of the ombudsman’s investigation, the state pension age changes were considered by the courts. In 2019 and 2020, the High Court and the Court of Appeal respectively found no fault with the actions of the DWP. The courts made it clear that under successive Governments dating back to 1995, the action taken was entirely lawful and did not discriminate on any grounds. During these proceedings, the Court of Appeal held that the High Court was entitled to conclude as a fact that there had been
“adequate and reasonable notification given by the publicity campaigns implemented by the Department over a number of years.”
The ombudsman has taken five years to produce his final report. As the chief executive of the ombudsman herself has set out, the DWP has fully co-operated with the ombudsman’s investigation throughout this time and provided thousands of pages of detailed evidence. We continue to take the work of the ombudsman very seriously, and it is only right that we now fully and properly consider the findings and details of what is a substantial document. The ombudsman has noted in his report the challenges and complexities of this issue. In laying the report before Parliament, the ombudsman has brought matters to the attention of the House, and we will provide a further update to the House once we have considered the report’s findings.
This Government have a strong track record of supporting all pensioners. In 2023-24, we will spend over £151 billion on support for pensioners. That is 5.5% of GDP, and includes around £124 billion for the state pension. We are committed to ensuring that the state pension remains the foundation of income in retirement now and for future generations. That is why we are honouring the triple lock by increasing the basic and new state pensions by 8.5% from next month. This sees the full rate of the new state pension rise by £900 a year and it follows last year’s rise of 10.1%.
We now have 200,000 fewer pensioners in absolute poverty after housing costs than there were in 2010. Our sustained commitment to the triple lock demonstrates our determination to continue to combat pensioner poverty in the future. That is why we have reformed the state pension as well as workplace pensions, improving the retirement outcomes for many women. Our commitment to pensioners is why we introduced automatic enrolment, which has seen millions more women saving into a workplace pension.
This Government are committed to supporting pensioners in a sustainable way, providing them with a dignified retirement while also being fair to them and to taxpayers. I have set out our strong track record of backing our pensioners. I have also set out our commitment to the full and proper consideration of the ombudsman’s report. I note that the ombudsman has laid his final report on this issue before Parliament, and of course I can assure the House that the Government will continue to engage fully and constructively with Parliament, as we have done with the ombudsman.
The Secretary of State says that he will provide a further update to the House on this matter. When will he do so after the House returns from its Easter recess? This has been going on for years. He rightly says that issues around the changes to the state pension age have spanned multiple Parliaments, but those of us who have been around a little while will remember that the turning point that sparked the Women Against State Pension Inequality campaign was the Pensions Act 2011, in which the then Chancellor, George Osborne decided to accelerate the state pension age increases with very little notice. His comment that this
“probably saved more money than anything else we’ve done”
understandably angered many women. At the time, Labour tabled amendments that would have ensured proper notice was given so that women could plan for their retirement, which would have gone some way towards dealing with this problem.
The ombudsman began investigating how changes to the state pension age were communicated in 2019. In the same year, the High Court ruled that the ombudsman could not recommend changes to the state pension age itself or the reimbursement of lost pensions, because that had been decided by Parliament.
The ombudsman’s final report, published last week, says that, in 2004, internal research from the Department for Work and Pensions found that around 40% of the women affected knew about the changes to the state pension age. Does that remain the Government’s assessment? What is their assessment of the total number of women who would receive compensation based on the ombudsman’s different options? How many of them are the poorest pensioners on pension credit? How many are already retired or have, sadly, passed away? Given the Department already knew there were problems with communicating changes to the state pension age, why did the Government press ahead with the changes in the 2011 Act in the way they did, and in the way that sparked the WASPI campaign?
The Government are currently committed to providing 10 years’ notice of future changes to the state pension age, but Labour’s 2005 pension commission called for 15 years’ notice. Have the Government considered the merits of a longer timeframe, and how they would improve communications in future? Labour is fully committed to guaranteeing that information about any future changes to the state pension age is provided in a timely and targeted way that is, wherever possible, tailored to individual needs. Will the Government now do the same?
Crucially, the Secretary of State omitted to say that the ombudsman took the rare decision to ask Parliament to intervene on this issue because the ombudsman strongly doubts that the Department will provide a remedy. In the light of these concerns, and in order to aid Parliament in its work, will the Secretary of State now commit to laying all the relevant information about this issue, including all impact assessments and related correspondence, in the House of Commons Library so that lessons can be learned and so that Members across the House can properly do their job? Our current and future pensioners deserve nothing less.
The hon. Lady made a slightly political point about the 2011 Act, and I gently remind her that the ombudsman’s report focuses on the period between 2005 and 2007, when her party was in government.
The hon. Lady asked a series of questions about various assessments based on the findings in the report. Of course, that goes to the heart of my response, which is—and I think she agrees with this—that we should look closely at the report in order to make those assessments.
On the hon. Lady’s specific point about notice of changes to state pension age, it has always been the position that that should be adequate. Indeed, in the last review that I undertook of it, there was a delay in the decision to increase the state pension age to 68 into the next Parliament. Among other reasons, that was to allow for just that point to be addressed.
What is particularly important now is that we will fully engage with Parliament, as we did with the ombudsman. On the hon. Lady’s point about the ombudsman, its chief executive stated on Sky News on Thursday, the day the report was published:
“The Government, the DWP, completely co-operated with our report, with our investigation, and over the period of time we have been working they have provided us with the evidence that we asked for.”
That is our record in this particular matter, but may I once again assure the House that the Government will continue to engage fully and constructively with Parliament, as we have done with the ombudsman?
Despite what the Secretary of State says, the verdict of the ombudsman’s report on the Department for Work and Pensions is damning and unequivocal, and weasel words will not change that. Women born in the 1950s had their pension age raised with little or no notice, and there have been failings at every turn by successive UK Governments. The report states that these women are owed compensation; that the DWP has refused to comply and must be held accountable for doing so; and that there was a failure to adequately inform women of the state pension age change. Those failures have had a devastating impact on lives, retirements and the financial and emotional wellbeing of WASPI women. Many have been reduced to poverty after being robbed of tens of thousands of pounds of pension, and that suffering has been caused by and is the responsibility of this broken Westminster system and this cosy Westminster consensus.
Financial redress is vital for these women and is in the interests of justice. Clearly Labour is not interested in that, but what we need from the Government is a commitment to prompt compensation for these women—with no barriers erected to prevent access to it—that recognises their financial loss and distress. We cannot have a situation where WASPI women have their campaign for justice vindicated and yet continue to be ignored. Any attempt to do that will rightfully result in a backlash.
We in the SNP stand shoulder to shoulder with these women, who have been abandoned and betrayed by the UK Government and the future Labour Government. Will the Secretary of State tell the House what it will take to compensate these women? Do we need another TV drama to embarrass and shame the Government into doing the right thing? These women are not going away but the longer this injustice is left unresolved, the greater the number of WASPI women who will die without seeing their pension—shame on this place.
The hon. Lady refers to the general situation of pensioners. All I can say is that I am pleased and reassured that pensions generally are a reserved matter. We have been able to increase the state pension, last year by 10.1% and this coming year by 8.5%. We have pressed hard on promoting pension credit for poorer pensioners. We had a cost of living payment. Because it is a reserved matter, this Government were able to provide £300 to pensioners last November, alongside their winter fuel payments. As a consequence of that—[Interruption.]
“there has been adequate and reasonable notification given by the…Department over a number of years.”
“The Government, the DWP, completely co-operated with our report, with our investigation, and over the period of time we have been working they have provided us with the evidence that we asked for.”
The Secretary of State has sought to avoid answering the question of when a decision will be made. “In due course” is not good enough, and neither is “without undue delay”. When will it happen? When will we get a debate on the issue, and a vote on proper compensation packages?
For years, those of us who sought justice for the WASPI women have met the same response, which was that we had to wait for the ombudsman’s report. We now have the report, so will the Secretary of State now comply, apologise to the women, and pay compensation to them, as recommended in the report?
This was an entitlement taken away from women, who had a reasonable expectation of retiring denied to them. The Government should have recognised the failings and should have compensated those 3.8 million women years ago. Now that we have the determination of maladministration, let us ensure that this is not another Horizon or contaminated blood story and that the Government come back at pace with firm proposals that the House can discuss after the Easter recess.
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