Hilary Benn - Labour MP for Leeds South
Thank you to constituents who have contacted me about the impact of State Pension Age (SPA) equalisation on women and the investigation by the Parliamentary and Health Service Ombudsman (PHSO), whose findings were presented to the previous Government on 21 March 2024.
It is important to note that the investigation was not into the SPA equalisation itself, but into how that change was communicated. However, I understand that the accelerated timescale in the Pensions Act 2011 impacted many women. I note that, at the time that Act was being debated in Parliament, Ministers in the then coalition Government refused to introduce fair transitional arrangements to protect women born in the 1950s.
The Government fully accepts the Ombudsman’s findings that previous administrations committed maladministration when it came to communicating the change in the SPA. It has, therefore, rightly apologised. However, given that most women knew the SPA was increasing, the Government does not believe that paying a flat rate of compensation, at a cost of up to £10.5 billion, would be a fair or proportionate use of taxpayers’ money. The Government is clear that this has been an extremely difficult decision to take but that it is the right course of action, as current circumstances cannot be ignored. This includes the fact that the previous Government failed to set aside a single penny for any compensation scheme while leaving a significant hole in the public finances that needs to be filled.
I recognise that many 1950s-born women will be deeply disappointed by the lack of compensation. At the same time, is committed to supporting women in retirement. The new State Pension will increase by more than £470 a year in April 2025, thanks to the triple lock. The Government will also maintain the triple lock by spending £31 billion over the next five years, money that will help protect pensioners in retirement.
Lessons must also be learnt from what has happened over recent decades to ensure everyone can properly plan for their retirement. Information about any future changes to the SPA should be communicated in a timely and targeted way.
Rt Hon Hilary Benn
MP for Leeds South
Secretary of State for Northern Ireland