Exclusive: 50s women: Details revealed of the damning buried DWP report that derailed Pat McFadden

Pat McFadden, poses for a photograph following his appointment to Cabinet by Prime Minister Sir Keir Starmer in 10 Downing Street. Picture by Lauren Hurley / No 10 Downing Street

The 18 year old research report that derailed work and pension secretary Pat Mc Fadden and forced him to review his decision to pay nothing in compensation to 3.6 million 50s born women is a comprehensive and damning document. No wonder he didn’t go into details in his Parliamentary statement this week on what the Labour government then did not do to inform the women and the first cohort of men who faced a rise in the pension age.

The key finding by researchers on the exercise of sending 16 million letters with automatic pension forecasts was that it was a “ systematic failure to reach the target populations most in need of provision.”

The research is very thorough. It took over a year to do it. It involved covering 16 million letters. Researchers interviewed 11,690 people. It involved both the women in the target 50-59 age group and men aged 59-64. ( 2007 was the year it was revealed that both men and women faced the pension age going up to 66). But it also involved men and women aged 20-49 to see if they were aware of the pension changes.

The first fact discovered was that out of the 16 million letters sent out, staggeringly 11 million went unread.

The report said The APF ( automatic pension forecast) was least effective among those who most needed it:

  • Those with no pension knowledge: 16% readership
  • Those without pension provision: 25% readership
  • Younger people: 20-24% readership
  • Lower socioeconomic groups: 30% readership

This represents a systematic failure to reach the target populations most in need of intervention.

All the letters did was reinforce people better off people’s decision to take early action to safeguard themselves.

It said This suggests the APF largely reached people who would have acted anyway, providing little marginal benefit.

There was also a Self-Selection Bias.

Those who read the APF were systematically different:

  • 64% already had basic/good pension knowledge
  • 33% already had pension provision
  • Higher income and socioeconomic status

The APF appears to have reinforced existing advantages rather than closing gaps.

It concluded:” “This research provides rigorous evidence that mass information provision, while well-intentioned, has minimal impact on pension knowledge or retirement planning behaviour. The APF initiative reached 16 million people but meaningfully engaged only about 5 million, with measurable behavioural impact likely affecting fewer than 1-2 million.

It lays down three fundamental truths.

  1. Information Is Not Enough Knowledge deficits are not the primary barrier to retirement planning. The research shows that those with the greatest information needs were least likely to engage with information provided.
  2. Existing Advantages Compound The APF was most effective among those who already had pension knowledge, existing provision, higher incomes, and greater financial capability—reinforcing rather than reducing pension inequality.
  3. Behaviour Change Requires Architecture, Not Just Information The minimal difference between APF and control groups demonstrates that passive information provision cannot drive behaviour change for complex, long-term decisions like retirement plan.

The report did tell ministers what they should do and why it was needed – that included specifically targeting the groups who did not respond in the future and running a systematic campaign to raise awareness of the change. As the Parliamentary Ombudsman found the result was maladministration.

DWP in ministerial flux

The ministry at the time was in flux. The year 2007 saw Peter Hain replaced by John Hutton – now both peers – as work and pension secretaries. The minister responsible for pensions changed as well from Mike O’Brien ( long left Parliament and working as a lawyer) and Dame Rosie Winterton.

There was zilch coverage in the media about its findings – the Iraq War was raging at the time – and it is not clear whether the report was kept for internal use anyway.

What will the impact be? First Pat McFadden says the review would not necessarily lead to the government paying out compensation. Secondly it could affect the judicial review brought by WASPI on the failure to act on the Parliamentary Ombudsman’s report and pay out compensation, as he said he had informed the high court about his decision to review the issue.

This could torpedo the hearing due on December 9 because judges may not want to hear the case if the minister says he is reviewing the situation.

As I have stated many times this would not have happened as CedawinLaw , the other main group campaigning for restitution for women, has said if they had applied instead for mediation and a court ruling to enforce it. But sadly WASPI has always refused to work with other groups wanting to create an impression in the media that they are the only people concerned about the issue.

Also the issue of past discrimination against these women as well as maladministration could have been included in the case. But Waspi do not seem to be bothered about this.

Not so transparent McFadden

There is one other issue to raise. Pat McFadden made a big issue of being transparent in his statement. But in fact he made it difficult for journalists to access this report. Normally when a minister makes a statement – and it will the case in the Budget – all the papers are available in the Vote Office to lobby journalists. In this case this paper was only available in the House of Commons library which can only be accessed by MPs. I would like to thank the anonymous MP who got me a copy.

Since then the library have allowed the report to be available to the public. The link is here.

One-Time
Monthly
Yearly

Make a one-time donation

Make a monthly donation

Make a yearly donation

Choose an amount

£5.00
£10.00
£20.00
£5.00
£15.00
£100.00
£5.00
£15.00
£100.00

Or enter a custom amount

£

Your contribution is appreciated.

Your contribution is appreciated.

Your contribution is appreciated.

DonateDonate monthlyDonate yearly

You can also donate via PayPal using the link below.

https://www.paypal.com/ncp/payment/865JAS3QJ3C

Winter Fuel Allowance: Equality statement reveals the scale of Rachel Reeves nasty blow to poor and disabled women pensioners

05/07/2024. London, United Kingdom. Rachel Reeves, Chancellor of the Exchequer poses for a photograph following her appointment to Cabinet by Prime Minister Sir Keir Starmer in 10 Downing Street. Picture by Lauren Hurley / No 10 Downing Street

UPDATE: Statistics released today (Tuesday) show claims for Winter Fuel Allowance jumped by 214,000 last year. More and more people over 80 are claiming the £300 higher allowance which had reached 3.3 million for the first time. The new figures mean the government will save even more money by abolishing it for all those not claiming pension credit, particularly from the very elderly. Figures released also show that those state pensioners living in EU countries who will continue to get the allowance amounted to 34,300. Over three quarters of them, some 26,000, live in the Republic of Ireland while those in Northern Ireland will get nothing. Qualifying for the allowance last year was this week which raises whether those claiming pension credit after this week will get the money for this winter.

Chancellor’s decision fuels racism when it is revealed her cuts are aimed at 95 per cent of white British born people

At last no doubt embarrassed by the Equality and Human Rights Commission which said the new Labour government was in breach of the Public Sector Equality Duty, the Treasury and the Department of Work and Pensions have had to release a breakdown of who is affected by the abolition of the winter fuel allowance.

Both departments used the mechanism of a Freedom of Information request made in August and chose a Friday afternoon to slip it out after Parliament had gone into recess to avoid too much publicity.

The clue is in what the announcement is called – an Equality statement – not an impact statement which was demanded by the House of Lords. In fact there has been no impact statement prepared at all even when Age UK said that about two million pensioners who will lose the annual £200 or £300 payment are just above the cut off point.

The document itself makes a claim that more men than women are affected by the change. But this is based on percentages not the actual figures. As it says: “This means that 85% (5.2m) of women receiving a Winter Fuel Payment (WFP) will lose out, compared to 91% (4.8m) of men. The reason for this is that women live longer than men and are more affected by the loss of the payment. The gender breakdown is 54% (6.1m) of those who received a WFP in GB in 2022/23 Female, and 46% (5.2m)
Male.

The figures reveal that the older you are, the bigger the loss you make, partly because the payment for over 80s is £300 rather than £200 per household.

The statement says: ” Although a smaller proportion of those aged 80+ will lose out than those under 80, due to the higher rate of WFP from that age, older pensioners who are affected will be proportionally worse off financially as a consequence of the policy.”

This is still 2.7 million people in top of the 7.9 million aged 66 to 79 who lose out.

Then there is the effect on the disabled – those claiming attendance allowance and disability living allowance. Here 1.6 million lose out and they must be the most vulnerable to the cold.

So if you are woman, more elderly and disabled you are worse off. If you are all three it is catastrophic.

The government has made a lot of noise about the 880,000 people not claiming pensions credit who could qualify by applying and getting the winter fuel allowance. But the paper says despite all the noise ministers are only expecting another 100,000 to claim leaving 780,000 still going without it.

The figures for existing claimants for pension credit are interesting. The most successful claimants are men not women – despite men being in a minority. The least successful are couples and there is a nasty reason for this. Under the Tories rules were changed so that both people had to be aged 66 to get it. So if you had a man who was 66 married to a woman who was 62 you would be excluded from claiming it until the man was 70 and the woman 66. No wonder the take up is lower. And Labour haven’t changed the rules.

Finally there is an ethnic breakdown. In the UK among the general population 84 per cent of the people are white British and 16 per cent are from ethnic minorities. Among the pensioner population, 95 per cent are white British and only five per cent are from ethnic minorities. So Labour in this case has targeted anybody who was born here far more heavily than people who were not.

This may well explain why I am getting a backlash from readers of this blog who complain that the government is doing more for people who have just arrived here than the population who have worked here since they were 15. They think it is unfair.

Cheerleader for Nigel Farage?

So we have the extraordinary situation that Rachel Reeves is inadvertently becoming the cheerleader for Nigel Farage by providing him with a platform to say that British born people are being unfairly penalised.

Her policy among that generation may well drive them to support Reform because they have a grievance that only Labour has created and cannot be blamed on the Tories. This unfortunate situation aids racism and has more purchase with people than tales of a £22 billion black hole.

Then there are international repercussion. The last government was already in trouble with the UN Convention on the Elimination of all Discrimination against women and girls (CEDAW) in Geneva. Although we ratified it nearly 40 years ago when Lady Thatcher signed us up, we have not implemented in law many of the provisions. This is a new policy – even though it was done administratively – and the government has not tested the impact on women which is against the convention.

More close to home there could be a case for indirect discrimination against women because although the policy appears to be fair to all pensioners, women are again bearing the brunt of it.

Of course as I argued in a previous blog both Rachel Reeves and Sir Keir Starmer know that many pensioners will die before the 2029 general election so they won’t be here to vote. By implementing this cruel policy for those just above the cut off point they know many more will join them as they freeze in their homes this winter.

One-Time
Monthly
Yearly

Make a one-time donation

Make a monthly donation

Make a yearly donation

Choose an amount

£5.00
£10.00
£20.00
£5.00
£15.00
£100.00
£5.00
£15.00
£100.00

Or enter a custom amount

£

Your contribution is appreciated.

Your contribution is appreciated.

Your contribution is appreciated.

DonateDonate monthlyDonate yearly

Please donate to Westminster Confidential

£10.00