Women teachers face pensions 'double whammy'

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Dame Anne Begg MP argues that a pensions 'double whammy' is hitting women teachers.

It used to be that the mere mention of the word 'pensions' made people's eyes glaze over. Now we have the prospect of a national strike being called in defence of public sector pensions. Two teaching unions, including the Association of Teachers and Lecturers (ATL) whose members have never been on strike before, have voted to take action on 30th June.

So why the change in interest? Teachers will be affected by the proposed changes to all pensions such as the 'triple lock' in state pensions which will ensure they will increase by a minimum of 2.5 per cent. However, this is likely to be outweighed by the change in indexation from RPI to CPI of occupational pensions.

Teachers are unlikely to gain anything from plans for a flat rate state pension but, for a profession so heavily weighted towards women, especially in primary schools, the acceleration of the equalisation of state pension age, and its rise to 66, will be by far the biggest change to affect the profession.

With the value of their pensions once in payment falling, and an agreement in 2007 to increase the age they can receive their teachers' pension from 60 to 65 as well as increasing their contributions, many teachers believed they had made sacrifices to protect their pensions.

Enter the Hutton Report, whose recommendations would mean that the 612,000 active members of the teachers’ pension scheme would be expected to pay an extra 3.4 per cent into their pensions on top of the current 6.4 per cent they already pay, an increase of over 50 per cent.

The proposal to change from a final salary scheme to a career average scheme is also worrying many in a profession where an average pension at the moment is only £10,000 per annum.

Therefore it is perhaps little wonder that many teachers feel that they will be working longer, paying more in, and getting less in retirement. Many of my ex-teaching colleagues dread the thought that they will have no choice but to still be at the 'whiteboard face' until they are 66.

Dame Anne Begg is Labour MP for Aberdeen South, chair of the work and pensions select committee, and a former secondary school teacher.

Throughout recess, ePolitix.com will be focusing on a different policy theme each week. Thisweek we are featuring MP articles with a focus on education.

This article was first featured in The House Magazine on June 27.