Claims of women losing cash under pension reform refuted
THE Government has denied claims from Labour's Derby North MP Chris Williamson that its pensions reforms will leave 1,200 Derby women worse off compared to men.
The changes mean that, instead of a basic pension of £107 a week plus various means-tested top-ups, recipients will get £144 in today's money from April 2017 at the earliest.
The Department for Work and Pensions says the change will simplify the current system, which can become complicated as some people receive the State Second Pension. This is the Government's earnings-related additional pension.
People may currently also benefit from an additional means test that tops up the pensions of the less wealthy.
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The DWP says the new system, announced last month, will be fairer for the self-employed, who do not currently build up a second state pension, and mothers, who spend time out of the workforce.
But Mr Williamson said Labour research had revealed the "true cost" of reforms – huge numbers of women losing out in comparison to men, including 1,200 in Derby.
He said some women born in 1952 and 1953 would not be eligible for the single-tier pension since they are due to retire before the new system comes into affect.
But, because of the current difference in retirement ages, men born during the same period will qualify.
Mr Williamson said: "The news comes after the Government claimed that 'we have to be absolutely transparent' [about who will lose out]."
Yet he failed to make clear the full consequences of the planned reforms.
"There are 430,500 women across the country and well over 1,200 in Derby who will be nearly £2,000 worse off compared to men.
"Once again, ministers have been caught with their hands in pensioners' pockets. It's about time this Government had the decency to be honest about who will lose out under their plans."
Minister for Pensions Steve Webb said Labour's research did not mention that women born in 1952 and 1953 would "receive their state pension up to three years before a man born on the same day, which could be worth up to £16,750 to them".
He said: "People can be reassured that, while single tier is a different system, it is no more generous overall than the one it replaces. It is nonsense to talk about dipping in people's pockets. For these women, our recent announcement does not change by one penny the amount of pension they are going to get."
3 Comments
by wilfredF1
Tuesday, February 05 2013, 5:40PM
“When mens retirement age was 65 and womens was 60 it meant that all men were losing about £25000 in payments. The Labour Government set plans in the 90s to start putting this on a more fairer basis and in 2010 the ages that state pensions would be paid to women would gradually change so that by 2020 it would be equal. This Government has simply moved it forward to 2018 but until this time men are still having to wait longer for their pensions than women.
Women are not being robbed but men have been since 1948.
Strange how it has taken all these years to put right this injustice.”
by Dave_Nottm
Monday, February 04 2013, 12:35PM
“Well, that's a consequence of having an earlier retirement age while men have to carry on working. Women also tend to live longer, so they gain at both ends. Stop Whingeing!”
by housing
Monday, February 04 2013, 12:10PM
“As a 57 year old Derby woman, I and many others have missed out by the state pension age being amended. Working alongside woman who at the age of 61 now can draw their state pension, I and others my age have to wait untill 66. Even if the amount is to be increased the maths would suggest that I loose out to the tune of £27k during this time, and means I have to carry on working, denying anyone else my job. At the age of 16 many years ago, I signed up to pay my contributions knowing that I would draw my pension at 60. It does'nt matter how much the Goverment justify their actions with regard to state pensions, I and others loose out. How dare the Goverment do this? Will this huge gap be addressed in a clear way? Is it legal? Has anyone questioned It with any success? Will I ever vote again? I think not.”