Amendments to Pensions Bill 2011 announced

Today Steve Webb, the Minister of State, Department for Work and Pensions, tabled the much anticipated Coalition Government's amendments to the Pensions Bill 2011.

The amendments include one that caps the maximum increase in women's State Pension age at 18 months, relative to the legislated timetable. This will ameliorate the increase in State Pension age for around 245,000 women and 240,000 men and reduce total savings from the increase to 66 by around £1.1 billion (in 2011/12 prices).

However it maintains the Government's policy to equalise the State Pension age for men and women in 2018 and increase it to 66 by 2020.

Three other Government amendments tabled respond to a recent judgment of the Supreme Court and protect members of pension schemes from unclear or unfair pension saving charges. They:

• Clarify what is meant by a ‘money purchase benefit', to ensure scheme members are protected appropriately
• Extend an existing reserve power to cap charges for deferred members, enabling the Government to protect all scheme members from high charges, not just active members
• Protect individuals who become automatically enrolled into a personal pension scheme when their employer closes a defined benefit or hybrid scheme to new members

Glasgow North MP Ann Mckechin said: "I am pleased to see the proposed rise in pension age has been delayed. This was a grossly unfair plan affecting 750 women in Glasgow North alone. I fully supported Age Scotland's campaign to get this overturned and I hope the delay signals the end of this truly terrible and insulting move by the Government."

Age Scotland spokesman Lindsay Scott said: "While we broadly welcome the changes that have been made, we do not believe the Government has done as much as it could have to smooth the transition for the worst affected women.
"Admittedly its amendments will give a much needed 6 month respite to all the women who would have had to work an extra two years and we appreciate that it has listened to some of our concerns.
"We also appreciate that it is a significant financial commitment at a difficult time but would have liked the changes being made to have gone further.
"Age Scotland would like to thank the many women across Scotland who have helped our campaign achieve a modicum of success. Having faced uncertainty twice already, these women must not be affected by any further changes to their state pension age without ample notice.

One of these women, 57-year-old Julia Brock from Edinburgh was less welcoming of the amendments. She said: "I suppose it's something, but as far as I'm concerned it is nowhere near enough."
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