Pensions Reform

That is precisely why we have problems in the pensions sector now. There were warnings in the 1980s about the challenge of longevity, pension holidays and soft economic management. Trade unions and employers alike referred to taking people out of the labour market in that way as the kindest cut, but that was a short-sighted view, as Members on both sides of the House have accepted in conversation with me, in private if not in public. That process was not as kind as it appeared, and we are feeling its impact now. We must find solutions, and those solutions must have sustainability built in, or they might fall at the first hurdle. That is where I agree with Opposition Members. We must therefore let go of some old ideas about people having a certain level of income, or the same job, throughout their lives. The world no longer operates in that way. When I accepted that I would have to work until 65, I tried to view that as an opportunity. When I thought about an ageing, white-haired old lady doddering around the place, I realised that I might not be doddering around this place but another place—[Hon. Members: ““No.””] I always accept compliments. These days, however, a woman of 65 is generally perceived as much healthier, more agile and having a great deal more to offer. In previous generation, women were not perceived as having much to offer at all. We were perceived as largely dependent. I welcome the huge shift in that regard in these proposals. It has been a scandal that women have benefited least from any of the systems. Women have to claim most means-tested benefits, and live the longest on the least money. That is a scandal that must be redressed. The most important outcome to me was not whether a citizen’s pension or universal pension was introduced but that we recognised women’s contribution, which might be years of caring for children, older people or disabled people. We now have a real task ahead of us to reach a clear definition of a carer. We have not made that clear enough, and we need to work on it. How will we make sure that our proposals really cater for those years of caring? When women take on work, accepting that the contribution period for their state pension will be shorter, we must give them confidence that the valuable contribution that they made to society through years of caring for parents, relatives and children will be properly recognised. Society could not have managed without those women in the past, and we must recognise their contribution properly in the future. We must also continue the link between an individual’s contribution and the benefit that they receive. If entitlement is simply linked to residence, there will be a disconnection between that and people’s contribution to society, either through work or caring. That matters to me, as it is a valuable element of building consensus and making sure that the system can be sustained into the future.