UK Parliament / Open data

Transitional State Pension Arrangements for Women

I apologise to those who want to intervene. Those who debated with me in Westminster Hall know that I will always try to answer as many questions and interventions as possible. We simply do not have time today.

Equalisation provides the foundations for a fairer state pension that treats men and women equally. That is something we can all agree on, on both sides of the House. The changes to state pension age were fully considered when the 2011 Act was passed. The Government listened to concerns at the time and adopted a concession worth over £1 billion, which benefited almost a quarter of a million women. Eighty-one per cent. of women affected will experience a delay of 12 months or less, compared with the previously legislated timetable.

The Government are also committed to helping older workers stay in the labour market and have extended the right of flexible working to all employees to help achieve this. We are now seeing record numbers of women in employment—over 1 million more since 2010. With the introduction of the national living wage, over two thirds of those who will directly benefit will be women. That is something we can all be proud of. For those who are having difficulties working, the Government provide the same support for women as for men of the same age—in work, out of work, and disability benefits.

I also appreciate the comments made about Government communication. My hon. Friend the Member for Weaver Vale (Graham Evans) made great play of this. All Governments of all political colours have always wrestled with the question of the best way to communicate. The DWP did write directly to all the individuals affected by the 2011 Act using the address details recorded by Her Majesty’s Revenue and Customs at the time. More than 5 million letters were sent at the time. A service has also been available for individuals to request their state pension estimates, and this service has been providing individuals with their state pension age since 1995. We have taken these lessons on board with the auto-enrolment scheme, with which we are seeing very successful engagement.

We must view these changes as part of the wider pension reforms. Those reaching state pension age from April of this year onwards will receive the new state pension, a reformed system that particularly benefits women who would have had poor outcomes under the current system. Over 3 million women stand to gain an average of £11 per week as a result of the changes by 2030.

In conclusion, I remind the House of the reasons for the reform of our state pension system. To function effectively, it has to be fair, affordable and sustainable. These changes made to the state pension age under the Pensions Act 2011 make an important contribution to achieving these aims.

Question put.

Type
Proceeding contribution
Reference
606 cc373-4 
Session
2015-16
Chamber / Committee
House of Commons chamber
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