UK pension age review must recognise Scotland’s demographics, says Somerville

An ongoing review of the pension age in the UK must recognise Scotland’s demographics, the country’s Social Justice Secretary has said.

A regular review of the State Pension age was opened earlier this year by the UK Government, with the Scottish Government submitting its views for any changes.

In her submission, Social Justice Secretary Shirley-Anne Somerville said lower life expectancy in Scotland than elsewhere in the UK risks inequalities in pensions.

“Here in Scotland, both men and women have a lower average life expectancy at the current State Pension age of 66,” she said.

“Inequalities in life expectancy, including healthy life expectancy, within the population are significant in Scotland, and reducing poverty and inequality therefore remains the best way of improving life expectancy.

“Nonetheless, it is important that current variations in life expectancy are highlighted in your review to ensure that any potential changes do not penalise those who have made similar contributions over the course of their lives.

“Pensions inequalities mean that women, people with multiple low pay jobs, disabled people, minority ethnic communities and people who are self-employed, all face lower pension incomes in retirement.”

While the Scottish Government is “doing everything within our powers” to tackle poverty, Ms Somerville added: “The Scottish Government does not want to see any changes that do not fundamentally consider Scotland’s unique challenges.”

Ms Somerville also urged the Government to offer compensation to the Waspi (Women Against State Pension Inequality) women – who were born in the 1950s and not adequately informed about a change to the State Pension age.

A compensation scheme has previously been ruled out by the UK Government, with costs estimated at about £10.5 billion.

“Further, any review of the state pension age must address previous mistakes and ensure justice for women born in the 1950s,” Ms Somerville said.

“Although the UK Government acknowledged their mishandling of this, there has yet to be any compensation paid to the Waspi women despite pressure from both stakeholders and the Scottish Government.

“It is vital that this review ensures that any changes are communicated clearly and fairly, so that similar distress is not repeated.”