Asked by
To ask Her Majesty’s Government what steps they are taking, if
any, to address the gender pensions gap.
The Parliamentary Under-Secretary of State, Foreign, Commonwealth
and Development Office and Department for Work and Pensions
() (Con)
My Lords, this Government recognise the challenge of the gender
pensions gap, primarily resulting from labour market
participation differences. We are working with employers and
partners on ways to address this, including by promoting women’s
progression in workplaces and introducing shared parental leave
and mandatory gender pay gap reporting. Automatic enrolment and
the new state pension are enabling more women to build up pension
provision in their own right, reducing historic inequalities in
the pension system.
(Lab)
My Lords, I thank the Minister for her reply and the Government’s
recognition of the seriousness of the pensions gap. However, she
must also know that her reply was insufficient in tackling this
problem. The problem of the pensions gap is multifaceted: it is
double the gap in pay—so, clearly, there are many issues involved
here. Will the Minister agree that, to a significant extent, it
is a carers’ pensions gap, and that any solution must involve
better pensions for unpaid carers? The only solution to that will
involve action by the Government directly to provide pensions for
carers.
(Con)
I can respond to the noble Lord: where carers are working, they
will be automatically enrolled, if eligible, into a workplace
pension. If they earn below £6,240, they can still ask to be
enrolled into the scheme, even though they are not automatically
put into it. We have committed to remove the lower earnings
limit; that benefits lower earners, including carers, working
part-time. In addition to carer’s credit, there is a wide range
of national insurance credits available to help people maximise
their state pension.
(LD)
My Lords, the Minister said that she wanted women to progress in
the workplace, but she must know that one of the biggest
inhibitors to women progressing in the workplace is taking time
out—as has been mentioned—to care for children, families and, in
later life, elderly relations. Can she more specifically say what
policies the Government are introducing to address this gap: the
disadvantage of women who are having to take time out? Will the
Government look at recommendations from experts, such as an
additional state pension credit for those who are not working
because they are looking after children under 12, and measures
for affordable childcare to be more widely available so that
women who are trying to work can do so? Currently, the cost of
childcare is prohibitive for so many women returning to work.
(Con)
I think that the whole House will agree with the noble Baroness
about childcare. There is work going on, first, to ensure that
people are claiming what they are due and are receiving the help
they should for childcare. However, that does not deal with the
problem as it stands. So I can tell the noble Baroness that the
Government are looking really carefully at childcare and are
working with employers to see what they can do on flexible
working to ensure that women can take their rightful place in the
workforce.
(Lab)
My Lords, the Minister’s reply reveals a disappointing tolerance
of carers’ inequality. Caring is an economic activity, resulting
in millions of women having to take periods out of the workforce,
work fewer hours and receive lower pay. They are excluded from
auto-enrolment into a workplace pension. They pay the penalty of
lower pensioner income on a lifetime. When will the Government
restore the principle that existed prior to 2016 so that carers
are credited with benefits into the second-tier pension? The
Government can do that tomorrow if they wish and restore the
principle that existed prior to 2016.
(Con)
Carer’s credit is a national insurance credit available to people
who provide care for one or more individuals for at least 20
hours a week. It can help individuals gain qualifying years that
count towards the new state pension. Under new state pension
reforms, carer’s credit has equal value to that of someone who
pays national insurance contributions. In addition to carer’s
credit, as I have already said, there is a wide range of other
national insurance credits available to help people maximise
their state pension entitlement.
(Con)
My Lords, does my noble friend agree that there is a particular
problem in this area with the situation for women on divorce?
Although the Government have introduced pension sharing orders
for divorce, do they have a figure for how many or what
proportion of divorcing couples actually share the pension? Many
men will say to their partner, “Oh, my pension is not worth
terribly much”; it is then ignored and solicitors do not always
get involved or advise women. Will my noble friend join me in
commending the MoneyHelper service, Pension Wise, which has just
established a helpline for women on divorce and encourage
take-up?
(Con)
Pension sharing on divorce is an option that can help women when
their marriage or civil partnership breaks down. It enables part
or all of a person’s pension to be transferred from the former
spouse as part of a settlement. This can help couples divide what
might be one of their largest assets. I fully take on board my
noble friend’s point about the extra effort to make sure that
women—and, indeed, men—know about the helpline. To ensure that
divorcing couples are aware of that option, the Government are
looking to improve signposting to information about pension
sharing on divorce when implementing the reforms to divorce law.
(Lab)
My Lords, to get a sense of scale, I wonder whether the Minister
has read the 2019 report from the Pension Policy Institute. It
found that, by the time they got to their early 60s, women’s
median private pension worth was a third of what it was for men.
Given that women tend to live longer than men, that is a massive
problem. It means that they are going to be poor in retirement.
There have been lots of different reasons but the report found
that key drivers were women taking time out of the labour market,
as has been mentioned, caring for older relatives and children.
If the things that the Minister describes were working, we would
not have this problem, would we? What is the Government’s plan to
put it right?
(Con)
In relation to the point that many noble Lords have made about
the time women have out of the workplace, I have outlined
national insurance credits. In terms of the specifics that the
Government are doing, I will need to write to the noble Baroness
because I am not fully up to date on them.
(Con)
My Lords, would my noble friend like to remind the House that
pensions are not provided for by any fund and come out of
taxation? The fact that the Government have been able to increase
the pension by the rate of inflation as from September is to
their enormous credit. It is an enormous bill and the Government
cannot do everything.
(Con)
I completely agree that the Government cannot do everything. It
just is not possible. The triple lock is being restored for the
rest of the Parliament and I think that, in the circumstances we
are in, the Government have done a fine job on that.
(Lab)
My Lords, under the pretence of equality, the state pension age
for women has increased from 60 to 66 but women continue to
receive a lower state pension than men. Can the Minister explain
why women continue to be treated as second-class citizens? When
will the Government give them pension equality?
(Con)
I think that the gap between women’s and men’s pensions is
closing—
A noble Lord
Is it?
(Con)
I am afraid that it is. We honestly believe that, by 2040—if I am
correct—it will be equal.
(CB)
Will the Minister join me in recording sadness that, on this
Question today, we did not hear the voice of , who was such an
extraordinary campaigner on these issues?
(Con)
I was very sad to hear of the death of but I am very happy to
agree with the noble Baroness, Lady Hayman, and endorse her work,
which was outstanding. She was particularly kind to me in my
role.
