Parliament prepares for ‘ping pong’ as pension row reignites

Labour has made a last attempt to stall the government’s increase to the state pension age (SPA) in the very last stages of the Pensions Bill.

The government has agreed to delay the rise of the SPA to 66, scheduled for 2020, by six months.

This means women in their fifties, who are the worst affected group, will wait no longer than 18 months extra for their pensions, rather than the two years they faced without the compromise.

However, the issue has been reignited by an amendment submitted by Labour peer Lord McKenzie of Luton yesterday.

The amendment proposes raising the SPA to 66 between 2020 and 2022, an idea previously proposed by former shadow pensions minister Rachel Reeves.

The move would save the government £20m instead of the £30m its current plan will save.

The bill has passed all its readings and was returned to the Lords for final consideration last week. It must now be agreed in its final form by both houses to become law.

If either house passes a new amendment, the bill must sent back to the other house for approval in a process known as "ping pong".

This is where the legislation passes rapidly between the houses, in some cases going from one house to another and back in just six hours.

Gregg McClymont, shadow pensions minister, pictured, hinted earlier this week that Labour had not given up on the women's SPA cause.

He confirmed he would meet with Labour peers to discuss a last-ditch attempt to change the bill.

"We still believe the government is being unfair. We are still asking ‘why this particular group of women?' and we have had no answer," he said.

"We all understand the SPA must rise, but we cannot encourage people to save if they feel the rules can just change arbitrarily."

Tom McPhail, head of pensions research at Hargreaves Lansdown, said: " I do not imagine Labour expects to prevail in this argument but it is certainly going to make life difficult for the government."

The final debates of the bill are scheduled for 31 October.