Archive

Pensions

So, yet again we have a Tory Minister saying something REALLY stupid and angering another group of people from amongst their core supporters. It makes you wonder if they are trying to make the other Parties lives easier for them. Do they care about the people who voted for them? These days it’s looking more and more as if they don’t.

So, who has been saying what and about whom on this occasion?

Who is being ridiculous this time?

Well, it’s an MP called Guy Opperman, talking about women and pensions.

He seems to think that older women, who are being disadvantaged by changes to the age that State pensions start being paid, could mitigate their financial loses by taking up Apprenticeship opportunities instead.

What foolishness is this? Do some of these Ministers just open their mouths and let the words fall out without thinking about what they’re saying first? It certainly seems to be what’s happening.

Just to explain the situation to people who may not know what I’m rabbiting on about this time, changes are being made to British Pension regulations which are designed to equalise when men and women become entitled to their State Pension. It used to be that women received their Pension from the age of 60 whilst men had to wait until they were 65. And this is what’s changing. The State pension age for women is being raised to 65 so that it’s the same for both genders. And there is no real argument about the fairness of this idea. In my opinion it should be the same for both genders. But there is an issue with how it is being implemented.

A group called WASPI (Women Against State Pension Inequality) argues that for women born in the 1950s having no transitional arrangement is unfair and wrong. These women’s pension arrangements and retirement plans and options are being changed without any thought as to how their plans are being changed. Their issue is with the unfair way the changes were implemented – with little or no personal notice (1995/2011 Pension Acts), faster than promised (2011 Pension Act), and with no time to make alternative plans. Retirement plans have been shattered with devastating consequences.​ And, Mr Opperman seems to think that women who are being affected adversely by these changes could take up apprenticeships to cover any financial losses they may experience.

I have two things to say about this idea – it’s unfair and it’s unworkable.

It’s unfair because these women have always been told and have believed that they will get to retire, on a full pension, when they are 60 and they have planned for this throughout their working lives. Surely a fairer way to do things would be to have a transitional period? And it’s also unfair on the young people, for whom apprenticeships were originally envisaged, to have these opportunities potentially taken from them by older women. It does not seem right.

But, the unworkable thing is what concerns me more. Exactly how many employers are going to want to take on an apprentice who is scheduled to retire either during or shortly after completing that programme? How many employers are going to want to spend any money whatsoever on training people up who will be leaving almost immediately? And how will women being paid at the pay rate for apprentices help anyway? Has Mr Opperman ever looked at how much money  people would get? Currently, apprentices over 19 and in their first year get £3.50 per hour. £140 for a 40 hour week. Once tax and NI is taken out, how would that mitigate ANYONE’S loses?

I think three things need to happen and need to happen fast. Firstly some sort of transitional arrangement needs to be put in place for the WASPI women. The rug should not be pulled out from under them without something sensible being sorted out. Secondly, and as a byproduct of this discussion,, the Government really does need to look at the rate of pay for all apprentices. £3.50 p/h is little more than save labour. Granted, apprentices need to be trained and, certainly initially, may not be as valuable to the workforce for any business, but wouldn’t a graduated pay scale be better? £3.50 or something similar to start with when a new apprentice starts and learns the basics but, once they have been around for a while, surely they are making money for their employer through the work they do? Surely someone who is halfway through should get some financial recognition for the work they are doing? Employers are earning profits from apprentices and the apprentices are earning peanut. It does not seem right. And thirdly, Government Ministers need to learn to think first before they speak so as not to come up with stupid pronouncements that upset some members of the electorate and serve no useful purpose but to make them appear to be ill informed and cruel. Think first, speak later really should be a maxim all politicians need to remember and consider at all times and should be point one on any briefing paper or induction pack they get when they enter the House for the first time.

Think first, speak later – you know it makes sense.