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General election 2019: Labour pledges payouts to pension age rise women | General election 2019: Labour pledges payouts to pension age rise women |
(about 1 hour later) | |
Labour has promised compensation to almost four million women who lost out because of changes to the state pension age, if it wins the general election. | |
Shadow chancellor John McDonnell said the £58bn pledge would settle a "debt of honour" to women born in the 1950s. | |
Women expecting to retire at 60 discovered they would have to wait years longer when changes to the state pension age were accelerated in 2010. | |
Campaigners have said they were not given enough time to prepare. | |
They recently lost a significant legal battle against the government over its handling of the issue. | |
The retirement age for women rose to 65 in 2018, in line with men, and will go up to 66 by 2020, and to 67 by 2028. | |
Labour said it would make individual payments of an average of £15,380 to the 3.7 million women it claims were affected - with some payouts as high as £31,300. | |
Mr McDonnell said the compensation, which the party says could cost £58bn over five years, would make right a "historical wrong". | |
He said those affected suffered "serious financial consequences" as a result of not being able to prepare for the rise in the age at which they would be eligible for their state pension. | He said those affected suffered "serious financial consequences" as a result of not being able to prepare for the rise in the age at which they would be eligible for their state pension. |
"Some of them have been hit by a combination of poverty and stress, having lost out on what they had contributed towards," the shadow chancellor added. | "Some of them have been hit by a combination of poverty and stress, having lost out on what they had contributed towards," the shadow chancellor added. |
"We have a historical debt of honour to them and when we go into government we are going to fulfil that debt," he said. | "We have a historical debt of honour to them and when we go into government we are going to fulfil that debt," he said. |
How did we get here? | How did we get here? |
From 1948 for more than 60 years men received their state pension at 65 and women at the age of 60. | From 1948 for more than 60 years men received their state pension at 65 and women at the age of 60. |
But over the years it was argued that the difference was unfair, as women had a longer life expectancy than men. | But over the years it was argued that the difference was unfair, as women had a longer life expectancy than men. |
So under the 1995 Pensions Act a timetable was drawn up to equalise the age at which men and women could draw their state pension. | So under the 1995 Pensions Act a timetable was drawn up to equalise the age at which men and women could draw their state pension. |
The plan was to raise the qualifying age for women to 65 and to phase in that change from 2010 to 2020. | The plan was to raise the qualifying age for women to 65 and to phase in that change from 2010 to 2020. |
But the coalition government of 2010 decided to accelerate that timetable, arguing that the state pension was becoming unaffordable. | But the coalition government of 2010 decided to accelerate that timetable, arguing that the state pension was becoming unaffordable. |
Under the 2011 Pensions Act the new qualifying age of 65 for women was bought forward to 2018 - affecting millions of women. | Under the 2011 Pensions Act the new qualifying age of 65 for women was bought forward to 2018 - affecting millions of women. |
While some of them had time to adapt to a longer working life, for others the change came as a shock. | While some of them had time to adapt to a longer working life, for others the change came as a shock. |
Read more here. | Read more here. |
Labour's pledge comes as a contrast to the Conservative Party's outlook on the Women Against State Pension Inequality (Waspi) campaign. | Labour's pledge comes as a contrast to the Conservative Party's outlook on the Women Against State Pension Inequality (Waspi) campaign. |
Boris Johnson was challenged by one of the women affected in Friday's BBC Question Time leaders' special. | Boris Johnson was challenged by one of the women affected in Friday's BBC Question Time leaders' special. |
The prime minister said: "I do sympathise deeply with the Waspi women... but it is very expensive to come up with the solution you want. | |
"I cannot promise I can magic up that money for you," he added. | |
Analysis | Analysis |
By Katie Prescott, BBC News business correspondent | By Katie Prescott, BBC News business correspondent |
Labour describes the issue of the change in state pension for women as a "historical debt of honour" that the country needs to pay for. | Labour describes the issue of the change in state pension for women as a "historical debt of honour" that the country needs to pay for. |
Or in its words "the state will be expected to find the money, just as it would do if the government lost a court case, rather than a policy decision". | Or in its words "the state will be expected to find the money, just as it would do if the government lost a court case, rather than a policy decision". |
Critics say this means the party has no idea where the money is supposed to come from. | Critics say this means the party has no idea where the money is supposed to come from. |
But there is much sympathy for the women caught up in the change to the state pension age, many of whom have led a grassroots legal battle against the government on the issue for years. | But there is much sympathy for the women caught up in the change to the state pension age, many of whom have led a grassroots legal battle against the government on the issue for years. |
Even while ruling against them, the judges in the case acknowledged "the court was saddened by the stories contained in the claimants' evidence". | Even while ruling against them, the judges in the case acknowledged "the court was saddened by the stories contained in the claimants' evidence". |
And this clear support from Labour - lining up squarely against the government's stance on the issue - could be very popular. | And this clear support from Labour - lining up squarely against the government's stance on the issue - could be very popular. |