Shirley-Anne Somerville urges UK-wide pension review to consider Scotland’s demographics

Shirley-Anne Somerville has urged the UK-wide pension review of the state pension age to give clear consideration of “Scotland’s demographic needs”.   

In a submission to the independent State Pension Age Review, which was launched by the UK Government in July, the social justice secretary said, “the Scottish Government does not want to see any changes that do not fundamentally consider Scotland’s unique challenges.”  

Somerville noted that men and women in Scotland have lower life expectancies than their counterparts in England.   

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

“On average, 66-year-old men are expected to live around one year less, and 66-year-old women expected to live almost one and a half years less in Scotland, when compared with their counterparts in England and, to a slightly lesser extent, Wales and Northern Ireland.   

“Inequalities in life expectancy, including healthy life expectancy, within the population are significant in Scotland, as indeed they are in other parts of the UK.”  

In the letter, Somerville said reducing poverty and inequality “remains the best way of improving life expectancy” but added it is important that “current variations in life expectancy are highlighted” in the review to “ensure that any potential changes do not penalise those who have made similar contributions over the course of their lives”.  

Somerville added: “We are doing everything within our powers to tackle poverty and inequality and to protect people in retirement, such as by providing pension age winter heating payments, which are estimated to benefit more than 880,000 eligible Scottish pensioners this winter.  

“But given these wider considerations, you will understand that the Scottish Government does not want to see any changes that do not fundamentally consider Scotland’s unique challenges.”  

This is the third review of the state pension age in the UK required under the Pension Act 2014.   

This review will assess whether the rules around pensionable age are appropriate, based on the latest life expectancy data and other evidence.  

It will take evidence from two reports: an independent report led by Dr Suzy Morrissey on specified factors relevant to the Review of State Pension age, and a report from the Government Actuary’s Department to examine the latest life expectancy projections data.  

Somerville also urged the UK Government to offer compensation to the Waspi women, who were born in the 1950s and not adequately informed about a change to the State Pension age. The Government has previously ruled out a compensation scheme, with cost estimates suggested to be over £10.5bn.  

She said: “Any review of the state pension age must address previous mistakes and ensure justice for women born in the 1950s.   

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 expected that Somerville and Morrissey will meet next month.