An unusually optimistic former pension minister, Steve Webb.
Since the state pension was introduced in the late 1940s there has been a big difference between the typical pensions paid to men and women. Even today, the average state pension paid to men and women who retired under the old state pension system differs greatly, with men getting an average of £217.30 compared with an average of £186.44 for the average woman. This puts the average woman on just 86% of the pension of her male counterpart. These figures also ignore the fact that many women on decent state pensions now are widows whose pension only rose when their husband died and who previously spent many years on a lower figure.
However, in 2016 a new state pension system was introduced and one of its specific goals was to gradually eliminate the gender pension gap in state pensions. The new system had to be phased in gradually, not least to protect the rights people had already built up under the old system. But those transitional protections are gradually working their way out of the system, with the result that the gap between men and women is reducing with every passing year.
Now, figures provided to Steve Webb using the FOI Act show that for the most recent group of retirees for which figures are available (those retiring in the year to November 2024), the gap between men and women has shrunk to under 1%
According to the FOI, the average newly retired man now gets a pension of £209.95 per week, with the average newly retired woman getting £208.15 – within 1% of her male counterpart.
As the new system continues to bed in, this gap is expected to close further and could even lead to a situation where women narrowly overtake men when it comes to state pensions.
The news has been welcomed by Steve Webb who, as pensions minister, was the architect of the new system.
We need to understand that the change in 2016 meant that in future people would be getting a pension that was not related to earnings (SERPS). Women’s earnings have been much lower than men’s since the second world war
According to the FOI, the average newly retired man now gets a pension of £209.95 per week, with the average newly retired woman getting £208.15 – within 1% of her male counterpart.
As the new system continues to bed in, this gap is expected to close further and could even lead to a situation where women narrowly overtake men when it comes to state pensions.
The news has been welcomed by Steve Webb who, as pensions minister, was the architect of the new system.
Webb may be optimistic but he is not complacent, he knows there is more work to be done, not least by his old department (the DWP)
“I am delighted to see that when it comes to the state pension, the battle against the gender pension gap is nearly won for those retiring today. When there is so much negative news about gaps between men and women when it comes to pensions, these figures show that things can be changed provided that there is the political will to do so.
There are however, far too many women who have already retired who are living on reduced pensions and I will continue to campaign for them to be treated fairly, including by rooting out all of the errors which have led to so many being underpaid for so long”.
Thoughts from Andrew Young
Webb was of course the Minister in charge when the 2015 changes to the state and second state pension were brought in (axing the rump of the second pension). He was helped in this by Andrew Young who has some choice words for a Government currently waiting for its Pension Commission’s first announcement
Women retiring today get some equality from the state pension- Webb
