State Pension Changes: Women

I beg to move,

That this House has considered compensation for women affected by state pension changes.

I thank each and every Member who has come to speak in the debate, and I am greatly encouraged that they have, as are those from the Women Against State Pension Inequality Campaign in the audience today, who are here to ask us, as MPs, to speak for them.

This is not an issue that any of us is unaware of. My emails in the last few days have been incredible. People do not understand the unfairness of what has happened, so let me take a moment to put the issue into context and to set the scene—I am conscious of time, Sir Gary, and I gave you a commitment earlier that I would give everyone else a chance to contribute.

The WASPI women are the generation of women born in the 1950s who have been adversely affected by the changes to the state pension age in the United Kingdom of Great Britain and Northern Ireland. They argue that they were not given adequate notice of transitional arrangements to adjust to the increase in their state pension age from 60 to 65 or 66, depending on their date of birth. That is the crux of this debate.

I thank the hon. Member for securing the debate and for the great work he is doing. Unfortunately, Sir Gary, I have to leave early, so I will not be making a speech. The hon. Member said that the so-called WASPI women “argue” that they were not properly advised and informed, but the stage 1 report produced by the Parliamentary and Health Service Ombudsman actually confirmed that they were not properly advised and informed.

I thank the hon. Gentleman for that, and he is absolutely right. I will come to that point and confirm it. The issue is all about fairness and equality, but, with respect to the Minister and the Government, they have fallen down on that.

I too congratulate my hon. Friend and colleague on securing the debate. He is a champion for women on this issue not only in his constituency but across the UK. Does he, like me, feel that last week’s Budget was a complete and total missed opportunity? The Government could have done something for these women if they really cared. They were able to step in and resolve issues to do with the Post Office, so why have they not been able to step in here, show a bit of compassion and demonstrate that they are prepared to solve this issue? Some 260,000 women have died since the campaign started in 2015. That is a disgrace, and the Government should act now.

My hon. Friend and colleague is absolutely right, which is why we are all here to make that case.

The WASPI women claim that the issue has caused them financial hardship, emotional distress and health problems. Many have had to work longer than expected, rely on benefits or use their savings to cope with the gap in their income. The hon. Member for Dudley North (Marco Longhi) is a strong supporter of WASPI women, and although he was unable to come today because of a prior engagement, he does support everyone else here.

I too thank the hon. Member for securing the debate. Some 8,000 WASPI women live in my constituency, and many have been in touch with me. They are at their wits’ end and do not know how they will manage financially—one constituent told me that they have had to sell their home. Does the hon. Member agree that Ministers should accept the clear findings of maladministration in the ombudsman’s stage 1 report and that the Government should commit to meeting the compensation recommendations as soon as the final report is published—if the Government care?

Absolutely, and we all say hear, hear to that.

The WASPI women also contend that they have been discriminated against on the grounds of sex and age and that they have been disproportionately impacted by the changes, compared with men and younger women. On behalf of those in the audience today, I very much agree with that assertion.

Actions to inform the women are felt to have been inadequate—I am using very gentle language in saying that—and did not go far enough. The changes to the state pension age were primarily enacted through legislative measures such as the Pensions Acts of 1995 and 2011. The Government claim that those changes were publicised through official Government publications in the belief that those were accessible to the public, but the fact is that they were not.

I too commend the hon. Gentleman on securing this really important debate. He puts his finger on the nub of the unfairness here: it was not just one Pensions Act that affected these women; many were subsequently affected by a further Pensions Act in 2011, so they were hit twice by the same injustice. It is all fine and well for the Government to say they do not accept that unfairness, but the reality is that the Parliamentary and Health Service Ombudsman has already ruled that there was maladministration in the functioning of the policy. Is it not time that the Government just accepted that and did what is right by these women?

Order. Just a reminder that interventions should be brief.

Thank you, Sir Gary. I wholeheartedly agree with the hon. Gentleman. Yes, there is maladministration, and I will use that word again shortly.

Many of the women concerned may not have been actively engaged with Government or have had knowledge of or access to Government publications. In that case, how could they have been informed to an extent that would have made a difference? That is the crux of the matter and of the debate, and it is why we are all here. This is about equality for women, and there has been a level of unfairness in the pensions system.

It is important to remember that women born in the 1950s entered a labour market and a society that was different from what young women experience today. They began working in the 1960s, in their teens, in a workforce where women were paid less than men and were expected to leave their jobs when they married or began a family.

I congratulate the hon. Gentleman on securing the debate and on his powerful opening speech. I am sure he will agree that it is important that we get on the record from the Minister today that the Department for Work and Pensions accepts the findings in the stage 1 report of maladministration. Most importantly, it must also act swiftly to compensate the women and the families of the women who have passed while waiting for compensation.

I thank the hon. Lady for that intervention. Everybody’s interventions so far have added to the debate and reinforced the issue.

Back when ladies started to work, there were no remunerated childcare schemes and it was not standard practice for ladies to be offered access to work pension schemes.

With all due respect to the Minister, the DWP has fallen down on this matter. The Department admitted in 2009 that direct communication with those affected by increases in the state pension age was limited. In 1995, leaflets explaining the changes were available from the Benefits Agency, but only on request. In other words, if someone wanted to know anything—if they even knew to ask—that is what they should have asked for. The fact is that the DWP has a responsibility.

Some 16 million voluntary letters were issued in the form of automatic pension forecasts projecting state pension entitlements, including to women aged over 50 at the time. Those letters did not include any details of state pension age or mention that it was changing, so those women were not fully notified. That is what this debate is about. When we look back specifically to the years between 1995 and 2000, we are reminded that we lived in a relatively pre-internet world, where information was not so readily available at the click of a button and social media did not exist. In the late 1990s, we had only five TV channels, and 24-hour broadcasting was still a thing of the future.

The DWP survey of 2004 asked working-age adults about awareness of state pension age equalisation. The results showed that, of those who were aware, 47% got their information from TV advertising, 37% were informed by reading a newspaper and only 2%—only 2%—cited the Pension Service as their source of information. The Pension Service had the responsibility, and it failed badly. Some 98% of those who qualified did not even know from the state Pension Service what should have been happening. That is a massive issue, and it has to be addressed. Furthermore, despite the efforts made through television and newspaper advertising, access to what we see now as the most basic avenues of communication was limited for women who were not securely housed or in unstable domestic environments.

I thank the hon. Gentleman for the speech he has made so far. People have been waiting three years since the report he has just outlined. Does he agree that justice delayed is justice denied and that the Government should, as the hon. Member for North Antrim (Ian Paisley) said, compensate them now and use this Budget to deliver that compensation?

I thank the hon. Member for that, and he is right: there is a real onus on Government to reach out and help.

The PHSO also found that the DWP had not given due regard to the impact of the changes on women’s lives and had not offered women adequate support or guidance. It recommended that the Government should apologise to the women and pay them compensation for all those things, including the maladministration. The Government should take positive steps following the PHSO’s findings and recommendations and issue that sincere and public apology to the WASPI women. That would be a significant gesture of respect and remorse and a first step towards repairing the relationship between Government and the women we all represent.

The second principle of compensation is restitution. The Government should restore the affected women to the position they would have been in had the changes to the state pension not occurred, or at least mitigate the negative effects of the changes. Restitution is important for compensating the women for the material and non-material losses they have incurred and for ensuring that they can enjoy a decent and dignified retirement. Wow! How much do we all want to see a decent and dignified retirement? Restitution is also a way to correct the imbalance and inequality caused by the changes and to ensure that the women are not penalised for their sex and their age.

The WASPI women will have different views and demands in terms of what constitutes fair and adequate restitution. Some want a bridging pension or a lump sum payment to cover the gap between their expected and actual state pension age. There really has to be something, and we need to see that coming forward. The restitution that each woman should receive may also depend on their individual circumstances, such as their income, health and caring responsibilities.

I join the chorus of congratulations to the hon. Gentleman for organising this debate. Like many here, he will have constituents who are starting to receive draft reports from the ombudsman about the second report, which will trigger the payment of the restitution he just mentioned. Obviously, they are in draft and we cannot comment on them now, but does he agree that if there is a final conclusion of injustice, to go alongside that of maladministration, it is essential that there is a rapid reaction from the Government to deal with that and to respond promptly, with a proper programme of compensation? Does he also agree that this will be incredibly complicated because lots of WASPI women, depending on their age and conditions, will have faced a different level of injustice, and everything has to be adjusted to reflect that?

I do agree with that. The Minister is obviously taking copious notes, and the civil servants have not had their heads up since the debate started, so I suspect and hope that they will have the answers we need.

The Government must adopt a flexible and tailored approach to restitution, based on the needs and preferences of the WASPI women. They should consult the women and their representatives to design a system of recompense that is fair, transparent and accessible. I call on the Government and the Minister to consider the PHSO’s recommendations when it publicises its final report on the financial remedy for the women in due course. If they do that, we will have taken a step in the right direction. The PHSO has indicated that it will consider the impact of the changes on the women’s standard of living, health and wellbeing, as well as the availability and adequacy of alternative sources of income and support.

The Government should also ensure that the restitution is delivered promptly and efficiently—do both those things—and ensure that the women are given clear and accurate information and guidance on how to claim and receive their compensation. The Government should monitor and evaluate the implementation of the restitution scheme and its outcomes, and adjust the scheme if necessary to ensure its effectiveness and fairness.

The third principle of compensation is reconciliation. It is a word often used in society, but reconciliation is what we want here. That means the Government should foster a positive and constructive relationship with the WASPI women and their representatives, and address the underlying causes and consequences of the changes to the state pension age. Reconciliation is important for healing the wounds and divisions caused by the changes and for building trust and co-operation between the Government and the women. Reconciliation is also a way of preventing similar injustices from happening in the future, which my hon. Friend the Member for North Antrim (Ian Paisley) referred to. If we do it right now, it will be in place for the future and will ensure that the pensions system is sustainable and equitable for all.

I was hesitating before intervening on the hon. Gentleman—

I have not finished.