7-8-02

Barrett calls for pensions justice for women

John Barrett, Scottish Liberal Democrat MP for Edinburgh West, today called on the Government take action to tackle the injustice facing many of the 78,000 female pensioners in Edinburgh and the Lothians.

Mr Barrett has called for:

a substantial increase in the basic state pension, particularly for older pensioners, to guarantee help gets through to the poorest pensioners, many of whom do not claim the Government's complex means tested benefits.
the Department of Work & Pensions to write to all women in their 40s and 50s who have ever paid the married woman's "stamp" to warn them their pension right may be in jeopardy
a major Government inquiry into the future pension prospects of today's working women, with a promise of action to guarantee the next generation of women pensioners do not miss out.

In a statement, John Barrett said:

"Pensioners are still treated by this Government as second class citizens. They have certainly not forgotten the 75p insult. However, many pensioners who are women are treated differently - as third class citizens!

"If the 75p insult wasn't enough, what of the women who acted on Government advice and now find themselves with a little as seven pence a week pension.

"I believe everyone has the right to expect dignity and security in old age. The plans I have put forward would help relieve poverty among today's pensioners and would help ensure future generations of women pensioners do not go without."

ENDS

Notes to Editors:

The campaign highlights the facts that:

Among today's pensioners, poverty rates are highest among women; almost half of pensioners on Income Support are women, and elderly widows are especially poor.
The gap between male and female pensioners' incomes has increased since 1979. For a single male pensioner, his average income has increased by 80%. For a single female, her income has increased by 73%. Between 1997 and 2000 a single male pensioner's income increased by 20%. Over the same period a single female pensioner's income rose by only 12%.
More than 1 in 3 women who are entitled to the Minimum Income Guarantee (MIG) fail to receive it. Up to 34%, or 460,000 entitled women do not receive their money. Numbers not claiming are getting bigger. In previous year, figure was 32%, or 430,000.
Among women in their 40s and 50s, many are set to receive poor state pensions because they paid National Insurance at the special rate for married women.
Many women who paid the reduced rate were not made aware of the consequences. Some have been promised pensions as low as 7p per week.
This could affect up to 1.5 million in total. Up to 75,000 women are still paying the special rate.
Women in their 20s and 30s, could face similar patterns of poverty in old age as their mothers and grandmothers; Government plans to increase the role of private provision and cut back on universal state pensions could leave many women vulnerable.
69% of stakeholder pensions bought by men & 31% bought by women.
Employers moving towards 'defined contribution' pensions. The pension 'pot' must be converted into an annuity - a product that guarantees a regular income for life. Annuities pay 10-20% less to women than men.