721
Pensions (Miscellaneous Provisions) Bill
8 JANUARY 1990
Pensions (Miscellaneous Provisions; Bill
722
[M. Ian McCartney]
the amendments might affect few women, they could have significant repercussions on the debate on pension entitlement in future years.
As I understand it, those in the pensions business who currently advise the Government say that a reduction in the male pension age to 60 would be expensive and would lead to a significant reduction in the net contribution. Therefore, rather than reduce the pension age for men, over stages the Government will increase it for women to 65. The basic pension and the state earnings-related pension scheme will be available to women aged between 60 and 65, and those retiring at 60 will receive the equivalent of two thirds of the full state pension. Women will lose their current pension entitlement at 60. Labour Members believe that to legislate for the worst elements of a scheme but to remove its best elements is no way to end discrimination between men and women.
The principle embodied in clause 1(2)(b) will put pressure on the Government to introduce a phased arrangement under which women's entitlement to full pension at 60 will be obliterated. Women who are currently aged about 50 will retain their entitlement to full pension at 60, but those aged between 40 and 50 will see their entitlement to a full pension changed to between 61 and 64. Women under 40 years of age will have to wait until they are 65 before getting a full state pension. That means of ending so-called discrimination is unacceptable.
Legislation covering care in the community is going through the House. More than 90 per cent. of those who care in the community are women who, voluntarily or involuntarily, give up their employment at an early age to look after an aged or severly disabled relative. It is ironic -indeed, I can find no precedent-that the House is considering legislation that will make it easier for people to care for others but a clause in this Bill will prevent women from retiring before they are 55 to look after a dependent relative and they will lose the benefits that they are currently enjoying.
The House would not expect this or any other Government to allow such discrimination. Over the coming decades, a growing number of women will be asked to take on the job of caring in the community. They will apply to their employers to retire before they reach 55, not on medical grounds involving themselves but on medical grounds relating to a dependent husband, mother or father or child. Changes in medical techniques mean that children are living beyond their teenage years with severe physical and mental disabilities.
The Minister may believe that this is a small, insignificant group of women. Legislation must take account not only of what is happening now but of what will happen in 10, 20 or 30 years. One of the damning features of clause 1 is that it fails to recognise changing trends and the needs of people who will be required to care for their elderly and dependent relatives.
I have spoken in the House on behalf of fire authorities, as their honorary parliamentary adviser. Because of the nature of fire fighters' work, a significant number would benefit from an early retirement age, but restrictions imposed under current legislation mean that they cannot. They would have liked an amendment to allow them the same rights as women who retire below the age of 55. Not
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only are these fire fighters not included in the Bill but--we never expected this-women who are now covered by legislation will be excluded.
Although there will not be a Division on the Bill, the House must return to the long-term fundamental issues of equal opportunities and pensions. The Opposition and a significant number of Conservative Members will not accept legislation that operates on the spurious ground that removing the rights of one group of pensioners whether male or female, is equalised by the ending of discrimination against another group. That is no way to proceed with legislation. I shall not seek to divide the House I see that you are smiling, Mr. Deputy Speaker, and thinking, "Thank God for that"-but I am not satisfied with the legislation.
4.44 pm
Mr. Ryder: By leave of the House, Mr. Deputy Speaker, I should like to speak again. I am grateful to hon. Members for the attention and interest that they have shown in this largely detailed and technical Bill, but 1 should like to stress again that it is a modest Bill and has modest scope. It amends the statutory framework in which the regulations for public service pension schemes are made. Apart from some adjustments at the margin to the law prescribing the index linking of public service pensions, the Bill does not directly alter the rules of any pension scheme. Changes to these rules will continue to be made in the usual ways, which are prescribed in the Superannuation Act 1972.
There can be no fear that the Bill will seriously affect the pensions of those who have retired after many years of public service. I assure the House that there is no cause for such concern. The proposed changes to the qualifying conditions for pension increases-clause 1-will be introduced in a way that fully protects the accrued rights of serving public servants and those already retired. The double indexation of part of the pensions paid to surviving spouses will be phased out gradually and only the widows and widowers of scheme members not yet retired will lose this anomalous and unintended benefit. That is covered by clause 5. The ending of the extremely small payments of pensions increase on additional lump sums will be introduced for future retirements only, and this is covered by clause 3.
I assure the hon. Member for Newport, West (Mr. Flynn) that we are not alone in work of this kind. Other European countries are affected by the 1986 directive. I know that that will be of interest to my hon. Friend the Member for Eastbourne (Mr. Gow). The hon. Member for Newport, West asked whether there had been consultation with various interest groups. I believe that all interest groups support the measures in the Bill, but if any have suggestions to improve it, let us have a look at them.
I understand that the Department of Education and Science is holding discussions with teachers' represen- tatives all the time and that a joint working party on pensions is operating now. The hon. Members for Newport, West and for Makerfield (Mr. McCartney) asked why we did not "level-up" pension increases for retired male scheme members so that those under 55 with dependent children could receive pensions increase. As the
be know, this would hon. Gentlemen
costly improvement to superannuation benefits for which either employers or employees would have to pay. During my
a