Thank you for contacting me about changes to the State Pension age (SPa) and the PHSO Ombudsman’s investigation regarding the Department for Work and Pensions and WASPI women.
I appreciate how strongly many may feel on both of these subjects and I would like to thank you for taking the time to outline your views.
Regarding the investigation into how the DWP communicated changes to the women’s state pension age, section 7(2) of the Parliamentary Commissioner Act 1967 makes clear that Ombudsman investigations “shall be conducted in private”. Moreover, it would not have been appropriate for me to comment on the PHSO investigation while it remained ongoing.
When David Lloyd George introduced the state pension in 1909, life expectancy was 51 and the retirement age was 70. Life expectancy has now risen to 81 and pension age for men and women is currently 66. It is important to note that the age will start gradually increasing again before 6 May 2026. When the contributory State Pension was introduced in the 1940s, it had a differential SPa – 65 for men and 60 for women. In 1993, the then-Chancellor of the Exchequer, Ken Clarke, announced that the Government would equalise the SPa at 65. This change would be phased in over ten years, starting in 2010. In 2011, to ensure the sustainability of the State Pension system, the Coalition Government accelerated the equalisation of the SPa and pledged to raise the SPa to 66. This meant that the SPa for women would reach 65 in November 2018, and the increase from 65 to 66 would happen by October 2020.
Indeed, in the Judicial Review of changes to the SPa, both the High Court and Court of Appeal supported the actions of the Department for Work and Pensions (DWP), finding that the DWP acted lawfully and did not discriminate on any grounds.
I am aware that the Parliamentary and Health Service Ombudsman has published its report on the State Pension age communications. Having cooperated fully throughout the PHSO’s investigation, the Government will carefully consider the findings before responding formally.
More broadly, the Government remains committed to ensuring that older people can live with the dignity and respect they deserve. I welcome the Government’s strong track record of protecting pensioners' incomes. Since 2010, there 200,000 fewer pensioners in absolute poverty and pensioners are now the group least likely to be living in poverty. To deliver on the promise to provide dignity in retirement, the Government is maintaining the Triple Lock in full for 2024-25. This means that in April, the basic State Pension, new State Pension and Pension Credit standard minimum guarantee will be uprated in line with September 2023 average earnings growth - 8.5 per cent – more than the current rate of inflation which is now at 3.4 per cent, helping more pensioners with the cost of living.
The cost of meeting WASPI demands in full is reported to be around £58 billion. Expecting younger generations to bear the cost of compensation is grossly unfair. A combination of economic shifts, educational expenses, housing challenges, and wage disparities has made it more expensive for the younger generation to navigate life compared to previous generations.
The Spa is going to have to continue to incrementally rise to keep up with the cost of pensions, which are the single biggest driver of increased government spending, and we are going to have to get used to retiring later.
EDM 1040 was tabled in a previous Parliamentary session and is now unavailable for signature. However, I will continue to follow this issue with interest.
Thank you again for taking the time to contact me.
Yours sincerely,
Sally-Ann Hart