Despite much opposition from back benchers, the government is determined to continue with its plans to raise the state pension age for women to 66 by 2020.
Coalition ministers have said that they will look at alternative ‘transitional’ arrangements so that less women are financially affected by the changes. Some 330,000 women are facing an extra two years of working life before they will be able to retire with the new reforms.
The current plans are for the pension age for women to rise from 60 to 65 years by 2018, and then to 66 in 2020 to come in line with men’s state pension age.
A vote was held in the Commons and the coalition won by a majority of 70.
Iain Duncan Smith, the Work and Pension Secretary, said during the Commons debate that the Government would not be budged from its position to raise the state pension age.
“Responsible government is not always easy government. It involves commitment, tough decisions and a willingness to stay the course.” he said but added that he was “willing to work to get this transition right” amid concerns over the “relatively small number of women” set to be disadvantaged.
To those who suggested delaying the rise until 2022, he said that the the taxpayer would have to pay an extra £10billion and that would be an “unfair financial burden borne disproportionately by the next generation.”
Chancellor George Osborne announced last year to speed up the rate at which the pension age for women would become equal to men’s.
The last government had planned to achieve pension age equalisation to 65 by April 2020, however the coalition’s reforms will see it happen sooner, by November 2018. Using the extra two years to raise the state pension age to 66 for both men and women.
Opponents to the new pension plans argue that many women will be made to wait between 18 months and 2 years before they can draw their state pensions. They add that the new reforms are unfair as a lot of women will only have been given a five year notice of the new plans.
A Commons motion calling for a rethink of the reforms had been signed by over 170 MPs, including Lib Dem and Conservative backbenchers.
Shadow Work and Pensions Secretary, Liam Byrne said that thousands of women’s retirement plans have been disrupted, with little notice.
“Women in their late 50s will have earned less over their lifetime, they have lower state pensions and private savings than men, many of them are unable to join a workplace pension and have interrupted careers to look after their family, many will have stood down from jobs on the understanding they would get that state pension early.
“What on earth are these women supposed to do with the measures set out in this Bill?”
Related Posts :
