Thank you for contacting me about changes to the State Pension age.
The Government decided over 25 years ago that it would make the State Pension age the same for men and women as a long-overdue move towards gender equality. The relevant legislation for equalisation includes the Pensions Acts of 1995, 2007 and 2011.
In light of increases in life expectancy since the 2007 Act, the Coalition Government decided to accelerate equalisation to ensure that the UK pensions system remained sustainable.
As such, the 2011 Act brought forward equalisation but capped the maximum increase at 18 months. This meant that the State Pension age for women would still reach 65 in November 2018 but the increase from 65 to 66 would happen by October 2020 rather than April 2020 – at a cost of £1.1 billion to the Exchequer.
Both the High Court and Court of Appeal have supported the actions of the Department for Work and Pensions (DWP), and the Supreme Court refused the claimants’ permission to appeal.
Importantly, the case brought before the High Court was dismissed on all grounds, including notice, in October 2019. The Court also ruled that there had been no discrimination on grounds of age or sex.
Moreover, the Pensions Acts of 1995, 2007 and 2011 were all subject to public consultation and debate in Parliament and were all widely reported in the media. The changes in the 1995 legislation were communicated in leaflets, advertising campaigns and individual letters. The up-to-date State Pension age was also provided to those who requested a Pension Statement. More than 37 million personal State Pension statements were provided between April 2000 and September 2020.
I am aware that the Parliamentary and Health Service Ombudsman (PHSO) has concluded stages one and two of its investigation into how the DWP communicated changes to women’s State Pension age. However, the PHSO investigation is a multi-staged process, and it would not be appropriate for me to comment while the investigation is ongoing. Section 7(2) of the Parliamentary Commissioner Act 1967 makes clear that Ombudsman investigations “shall be conducted in private”.
I would also highlight the unprecedented support the Government is providing to pensioners in the light of pressures associated with the cost of living.
All households, including pensioner households, will benefit from the Government’s Energy Price Guarantee (EPG). Under the EPG, the typical household will pay no more than £2,500 on their energy bill until April 2023. Thereafter, the price cap will rise so that the typical household will pay no more than £3,000 until April 2024. The EPG will save the average household a further £500 and mean they will not have to face energy bills of £6,000 this winter or next.
I strongly welcome the Chancellor’s announcement during the Autumn Statement 2022 that the Government will increase its cost-of-living support package by an additional £12 billion, taking the total from £37 to £49 billion.
This increase means that, in addition to the cost-of-living payments being made in 2022, the Government will provide extra one-off payments of £900 for the eight million households on means-tested benefits, including Pension Credit; £300 for pensioners; and £150 for disability benefit recipients. The Chancellor also announced that the Government will provide £1 billion of extra funding by extending the Household Support Fund for another year.
Moreover, I strongly welcome the Chancellor’s announcement during the Autumn Statement 2022 that the Government will protect the Triple Lock for pensions in full. This means that in April 2023, the State Pension will increase
by 10.1 per cent, in line with the inflation figures for September 2022. This is the biggest cash increase in the State Pension ever.
Since 2010, the Government has already increased the full yearly amount of the basic State Pension by over £2,300 in cash terms.
Thank you again for taking the time to contact me.