Posted: 31 January, 2013 at 11:07 am

Local women lose out with pension reforms

Local women lose out with pension reforms

John Healey has hit out at planned pension reforms which could mean 700 women in the Wentworth and Dearne constituency lose out.

Women born in 1952 and 1953 will not be eligible for the single tier pension since they are due to retire in 2017, before the state pension reforms come into effect.

But men born during the same period will qualify.

Mr Healey said the government had failed to make clear the full consequences of the changes, despite claiming it would be “absolutely transparent.”

This is the second time the government has been caught trying to hide the full impact of its changes for pensions following the Granny Tax.

Mr Healey said:

“Ministers have been caught red-handed hiding the truth on pension reforms.

“This government’s pension changes have hit hard-working women in Rotherham and Barnsley time and time again and these reforms are no different.

“700 women in the constituency will be nearly £2,000 worse off compared to men, but instead of being honest with the women that will lose out this government tried to bury the truth.

“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.”

Notes to editors

• Women born between April 1952 and July 1953 will retire before 2017 and will not be eligible for the single tier pension of £144. For example a woman born in October 1952 will retire at age 63 in 2015.This means that she will draw the basic weekly pension of £107.45 (in today’s prices) when she retires. However, men born in the same period are due to retire in 2017, and so will be eligible for the new single-tier rate.

• More information on single tier pensions can be found here:
http://www.dwp.gov.uk/newsroom/press-releases/2013/jan-2013/dwp007-13.shtml

• The figure of 700 women in the constituency is based on an estimate by the House of Commons library. Their research shows 430,000 women born between April 1952 and July 1953 could lose out in this way.

• This could mean that women draw a state pension income of around £1,900 a year (£36.55 a week) less than a man of the same age. The exact difference will depend on the number of contributions each woman has made, and whether she receives means-tested benefits or not.