State Pension Inequality
Council notes that:
· In the 1995 Pensions Act, the Government increased State Pension age for women from 60 to 65, with a further increase to 66 in the 2011 Pensions Act.
· The change was not properly communicated to 3.8m women born in the 1950s until 2012, giving some only one year’s notice of a six year increase in their anticipated retirement age. Nearly 6,000 of the affected women are in our own authority area.
· The Parliamentary and Health Service Ombudsman (PHSO) has found that the Department for Work and Pensions was guilty of maladministration in its handling of the State Pension Age increase for women born in the 1950s.
· The All Party Parliamentary Group on State Pension Inequality for Women has concluded that “the impact of DWP maladministration on 1950s-born women has been as devastating as it is widespread. The APPG believes that the case for category 6 injustice is overwhelming and clear. Women have had their emotional, physical, and mental circumstances totally obliterated by a lack of reasonable notice.”
· Research commissioned by campaign group WASPI has found that by the end of 2022, more than 220,000 1950s born women will have died waiting for justice since the WASPI campaign began in 2015.
· WASPI’s figures show that over the course of the two year COVID pandemic, 1 in 10 women who died was affected by these uncommunicated changes and lost both their state pension income and the opportunity to make alternative retirement plans.
· Despite the Ombudsman’s findings and the rapid death rate of those affected, the government is choosing to wait for further reports before taking any action.
Council believes this injustice has not only had a profound effect on the individuals involved but on the wider community in Exeter and on local government, not least because:
· Women who would have looked after older relatives or partners are unable to afford to do so, with a knock-on impact on local social care.
· Women who would have retired and engaged in caring responsibilities for grandchildren are having to continue working, increasing the childcare burden on the state locally.
· Women who have been left in poverty are struggling to meet their housing costs, with a knock-on impact on local housing stock.
· There is a broader impact on voluntary services of all kinds locally, which are missing out on able, active volunteers who would otherwise have been able to retire from full-time work as planned.
· Our local economy is negatively affected by the reduced spending power and disposable income the uncommunicated State Pension Age changes has brought about among women born in the 1950’s.
Council supports:
· The conclusion of the All Party Parliamentary Group on State Pension Inequality that women born in the 1950s have suffered a gross injustice, affecting their emotional, physical and mental circumstances in addition to causing financial hardship.
· A swift resolution to this ongoing injustice before more and more women die waiting for compensation.
· The WASPI campaign for an immediate one-off compensation payment of between £11,666 and £20,000 to those affected, with the most going to women who were given the shortest notice of the longest increase in their state pension age.
Council asks:
· The Leader of the Council to write to local Members of Parliament, and to the Secretary of State for Work and Pensions to outline the effects of the injustice to 1950s women on the community in Exeter and to seek their support for an immediate compensation package.
Minutes:
Councillor Atkinson, seconded by Councillor Oliver, moved a Notice of Motion in the following terms:-
State Pension Inequality
Council notes that:
· In the 1995 Pensions Act, the Government increased State Pension age for women from 60 to 65, with a further increase to 66 in the 2011 Pensions Act.
· The change was not properly communicated to 3.8 million women born in the 1950’s until 2012, giving some only one year’s notice of a six year increase in their anticipated retirement age. Nearly 6,000 of the affected women are in our own authority area.
· The Parliamentary and Health Service Ombudsman (PHSO) has found that the Department for Work and Pensions (DWP) was guilty of maladministration in its handling of the State Pension Age increase for women born in the 1950’s.
· The All Party Parliamentary Group on State Pension Inequality for Women (APPG) has concluded that “the impact of DWP maladministration on 1950’s-born women has been as devastating as it is widespread. The APPG believes that the case for category six injustice is overwhelming and clear. Women have had their emotional, physical, and mental circumstances totally obliterated by a lack of reasonable notice.”
· Research commissioned by the campaign group Women Against State Pension Inequality (WASPI) has found that by the end of 2022, more than 220,000 1950’s born women will have died waiting for justice since the WASPI campaign began in 2015.
· WASPI’s figures show that over the course of the two year COVID pandemic, 1 in 10 women who died were affected by these uncommunicated changes and lost both their state pension income and the opportunity to make alternative retirement plans.
· Despite the Ombudsman’s findings and the rapid death rate of those affected, the Government is choosing to wait for further reports before taking any action.
Council believes this injustice has not only had a profound effect on the individuals involved but on the wider community in Exeter and on local government, not least because:
· Women who would have looked after older relatives or partners are unable to afford to do so, with a knock-on impact on local social care.
· Women who would have retired and engaged in caring responsibilities for grandchildren are having to continue working, increasing the childcare burden on the state locally.
· Women who have been left in poverty are struggling to meet their housing costs, with a knock-on impact on local housing stock.
· There is a broader impact on voluntary services of all kinds locally, which are missing out on able, active volunteers who would otherwise have been able to retire from full-time work as planned.
· Our local economy is negatively affected by the reduced spending power and disposable income the uncommunicated State Pension Age changes has brought about among women born in the 1950’s.
Council supports:
· The conclusion of the APPG on State Pension Inequality that women born in the 1950’s have suffered a gross injustice, affecting their emotional, physical and mental circumstances in addition to causing financial hardship.
· A swift resolution to this ongoing injustice before more and more women die waiting for compensation.
· The WASPI campaign for an immediate one-off compensation payment of between £11,666 and £20,000 to those affected, with the most going to women who were given the shortest notice of the longest increase in their state pension age.
Council asks:
· The Leader of the Council to write to Local Members of Parliament, and to the Secretary of State for Work and Pensions to outline the effects of the injustice to 1950’s women on the community in Exeter and to seek their support for an immediate compensation package.
In presenting her Motion, Councillor Atkinson made the following points:-
· the changes in the state pension age had impacted some 3.1 million women in the UK, with 6,000 in Exeter and it was estimated that over 200,000 women had died since 2015 as a result of the changes;
· there had been no progress on state pension entitlement by the Government since a Motion on this topic was supported by the City Council on 26 July 2016, (Min. No. 48 refers);
· the WASPI campaign is fighting this injustice, with many women having lost up to £50,000 in state pension after the retirement age was raised to 65. As a result, women born in the 1950’s could not properly plan for their retirement;
· the Pensions Ombudsman found that the DWP had failed to take adequate account of the need for targeted and individual tailored information when communicating the changes in state pension age;
· there were many heart-breaking stories with some women selling their homes and forced to live on benefits for the first time in their lives, many having responsibilities for looking after family members. Women born in the 1950’s feel betrayed as they had supported their families but did not benefit from maternity or childcare support and also would have missed out on equal opportunities in pay, training and career advancement;
· there was a sense of urgency in calling for those women to receive some justice in this regard and to be fully compensated for the last 10 years; and
· the current cost of living crisis also impacted on women. The Director of Communications from the Independent Age Charity had stated that, before the Pandemic, 20% of women over the age of 65 years were already living in poverty and this would now be exacerbated with inflation at 12% and rising energy costs.
Councillor Oliver, in seconding the Motion, expressed her concern that the changes had been brought in at such short notice and at the injustice caused.
A number of Members provided evidence of how they, or their spouse, had been impacted by this injustice and Members also made the following comments:-
· support for the Motion would help combat this injustice as many women were unable to adequately plan financially for their future because of the speed the legislation was brought in and the lack of communication around it. Whilst there were arguments in favour of equalising retirement age, when the original state pension legislation came in, life expectancy on working men and women had been different;
· there were very telling statistics that women were suffering and had died before there was an opportunity to benefit from any compensation. Nearly a ¼ million women had died waiting for this injustice to be addressed; and
· in the 1950’s and 1960’s many women could not join a pension when younger if they worked part time due to family commitments and when there was limited childcare provision. Many were also in low paid work and may not have taken the opportunity to join a pension because of the costs.
Councillor D. Moore, as a co-leader of an opposition group, welcomed the Motion and commended WASPI for the dignified way it was promoting this issue.
Councillor Atkinson commended the Motion to Council.
The Notice of Motion was put to the vote and CARRIED unanimously.