Pension changes and the gendered impact: Accelerated action without consideration for women

For over a century, the International Women’s Day (IWD) has raised awareness of key issues relating to gender inequality and has been used as a platform to engage communities and promote positive action. This year, the IWD campaign’s theme ‘Accelerate Action’ is a call to bring about action to dismantle the systemic barriers women face and advance gender equality.

This year’s theme provides an opportunity to look further at what happens when action is taken without consideration of the gendered impacts. Systemic inequalities in women’s working lives contribute to the gender pay gap and persist into retirement which directly influences the gender pension gap. Women born in the 1950s and 60s have been affected by the change in state pension age, and many experienced hardship as a result of the insufficient notice provided of the change which has had a detrimental effect on their retirement plans and lives.

The WASPI Campaign

The Women Against State Pension Inequality (WASPI) campaign was formed in 2015 in response to pension reforms that significantly affected the women born in the 1950s and 60s. These reforms aimed to equalise the State Pension Age (SPA) between men and women, but the WASPI campaign highlights that the changes were implemented without adequate communication to those directly affected. As a result, many women faced significant financial and emotional distress due to the lack of notice and the abrupt changes to their retirement plans.

WASPI and similar groups don’t oppose the equalisation of the SPA itself, but their concern lies in how the changes were implemented. The accelerated timetable, combined with insufficient notice, left many women with little to no time to adjust. This failure to properly inform women about the reforms sparked widespread controversy about fairness and the responsibility of the government in ensuring that those impacted had enough time to prepare.

The timeline of SPA equalisation

The most controversial change came from the 2011 Pensions Act, which brought forward the SPA increase for women born in the 1950s, significantly reducing the time they had to plan for retirement. Many received this information too late, with some women having only a year’s notice—or none at all. According to the House of Commons Library, around 2.62 million women were affected by the 2011 changes by 2018.

The impact of accelerated changes: A gendered crisis

The increase in the State Pension age (SPA) has had a detrimental impact on older women’s finances, making it harder for them to manage their income and bills. The effects have been particularly harsh for those who’ve had to wait longer to receive their pension. Single women are more affected than those with a partner, and many have struggled to stretch their pension savings further, especially given that many already face low pay and poverty. This has taken a significant toll on their personal, financial, and mental wellbeing.

Gendered barriers in the labour market: A direct link to gender pension inequalities

The gendered barriers in the labour market, particularly around the provision of care have long-lasting effects on women’s financial security, including their State Pension. Women are four times more likely than men to give up work to care, often for multiple family members. As unpaid work isn’t valued or counted by existing economic measures, this means the State Pension system doesn’t fully reflect their contribution to the economy. Meanwhile, lower wages and the lack of affordable childcare create barriers that prevent women from earning as much as their male counterparts.

By the time women reach their late 50s, their average pension savings are less than two-thirds of men’s, with much of this gap caused by labour market inequalities like women’s prevalence in part-time, low-paid, undervalued jobs. These challenges are compounded for disabled women and women from racially minoritised groups.

Disabled women, for example, are more likely to be unemployed, and be funnelled into lower-paid roles. Racially minoritised women are more likely to be underemployed in terms of skills, and experience higher pay gaps. Their ability then to secure stable, well-paying jobs or advance in their careers is severely affected. These intersecting barriers exacerbate the financial inequality that these groups experience, leaving them with even fewer resources to build up adequate pension savings.

The unequal division of care work, women’s interrupted career histories due to caregiving, women losing out financially in divorce settlements, and the economic impact from the COVID-19 pandemic have all played a role in women’s lower lifetime pension contributions.

For women born in the 1950s and early 60s, these systemic issues, combined with the accelerated equalisation of the SPA, have created unique challenges. The equalisation of the SPA taking effect quicker than expected has essentially robbed many women the opportunity to build up a sufficient level of pension income, and worsened existing inequalities that have persisted throughout their lives.

Health and pension inequality: A growing concern

Although the SPA was increased in response to an ageing population, data from the National Records of Scotland shows life expectancy of age 65 stalled after 2012-2014, declined during Covid-19, and remains below pre-pandemic levels.

Nearly one in four ‘economically inactive’ people under SPA were out of work due to long-term sickness or disability. As disability becomes more prevalent with age, ill health remains a major concern for many women approaching SPA.

The rising SPA has forced women to stretch their pensions for longer periods. However, the proportion of life spent in good health has been decreasing rapidly for women compared to men. This limits women’s ability to remain in the workforce, as 1.5 million women are now ‘economically inactive’ due to long-term sickness, 200,000 more than men. By 2030, women in the most deprived areas are expected to experience over 16 years of ill health before reaching SPA.

The Department for Work and Pensions (DWP) reports that the ‘economic inactivity’ rate for women aged 50-64 was 31.3% in 2024, compared to 23.2% for men. For this cohort of women, being sick, injured or disabled continues to be the main reason why they’re not engaged in the labour market. Women in this group were twice as likely than men to report that caring responsibilities were also one of the main reasons for not looking for paid employment.

As women approach retirement, many may need to manage their health or take time off work. While working longer has benefits, both in terms of pension contributions and the social aspect, these are only enjoyed when individuals don’t feel they are forced to do so. The longstanding inequalities women face throughout their careers contribute to the gender pension gap, and with more women leaving the labour market early due to increasingly poor health, the financial impact is particularly acute for those women affected by the SPA equalisation.

The gender pension gap and growing inequalities

Women are more likely to rely on the State Pension in retirement but are also less likely to receive the full amount. Many women face career interruptions due to caregiving, leading to gaps in National Insurance contributions. Despite the increase in the SPA resulting in fewer women pensioners, the number of women living in pensioner poverty has actually risen. Women make up more than two-thirds of pensioners living in poverty, with single women particularly affected.

A recent study from NOW: Pensions revealed that, on average, a woman must work 19 years longer than a man to accumulate the same level of pension wealth . For young women, barriers to auto-enrolment, such as low earnings and age, exacerbate this gap. Currently, 100,000 more young women than young men do not qualify for auto-enrolment, and many women are not in pension schemes to begin with. Scottish Widows found that, of the 14.6 million women currently employed in the UK, 17% (2.5 million) do not qualify for auto-enrolment compared to just 8% of male employees.

A simplistic view that focuses on individual responsibility and choice does not recognise the gendered constraints around these. It also overlooks the many barriers women face in later life when it comes to employment, as well as the lifetime of inequalities that continue to affect them as they approach, and are well into, retirement.

The current context: Recommendations and government inaction

In response to the WASPI campaign, the Parliamentary and Health Service Ombudsman (PHSO) conducted an investigation into how the DWP handled communication about the SPA changes to affected women. The PHSO found that the DWP failed to adequately inform women about these changes and how they would affect their retirement plans. Although the PHSO was not able to examine the speed at which the changes were implemented, it was clear that this had a significant impact on women’s ability to save for retirement, even if they had been properly informed.

The PHSO’s investigation into the maladministration of pension changes has offered some hope for those affected. The 2021 report found that the DWP failed to adequately inform women about the changes, depriving them of the opportunity to adjust their retirement plans. Despite these findings, the UK government has refused to provide compensation for the women who were unfairly impacted. This refusal to provide fair compensation is merely a continuation of the injustices felt by this cohort of women, with decisions that continue to penalise them, and sustain gender inequality.

Close the Gap’s calls for action

Given the compounding factors that contribute to women’s pension inequality, particularly the severe impact on women born in the 1950s, it’s clear that significant action is needed. While prompt action is vital, sustained long-term commitment is necessary to drive lasting change and ensure the advancement of women’s equality in the workplace.

To promote gender equality and close the gender pension gap, we call on the UK government and employers to implement the following measures:

• Compensation for WASPI women: Provide fair compensation to help women secure financial stability in retirement.
• Affordable and accessible childcare: A vital step in reducing the gender pay and pension gaps, as outlined in our joint paper ‘A Childcare System for All’.
• Family Carer’s Top-Up: A policy that would see the government contribute to carers’ pensions at the National Living Wage level.
• Workplace pension reform: Address the barriers that prevent many women from qualifying for auto-enrolment.
• Government support for working women: Offer statutory paid leave for carers.
• Employers should take action to address the inequalities that disabled women and racially minoritised experience in accessing and progressing in the workplace.
• Employers should develop gender-sensitive employment practice that specifically tackles the barriers faced by disabled women and women with long-term health conditions.

These actions are key to advancing women’s equality in the workplace and securing a fairer retirement for women across the UK.

We are recruiting new trustees to our board!

Close the Gap is looking for new people to join our board of trustees.

About Close the Gap

It’s an exciting time to join Close the Gap, as we look to expand our impact and reach in driving action to end women’s labour market inequality and create real change in women’s lives.

Our Chair, Samantha Bedford, has shared her experience of working on the Close the Gap board:

“It’s a great way to use my knowledge, skills and experience and to give back.

It’s enabled me to become a better, more experienced trustee – seeing how others operate, the diversity of thought and the overall professionalism of the board.

I’ve learned so much about the issues and how to navigate public sector funding and influencing which continues to be fascinating.”

About you

Committed to women’s labour market equality, you’ll have the ability to think strategically and creatively, and to respond to the needs of the organisation. You’ll also be able to commit the time to fulfil the role of trustee and help us meet our strategic objectives.

We are strongly committed to equality, and recognise that diverse boards are more effective, and result in better governance practice. We would particularly welcome applications from racially minoritised people and disabled people, who are currently under-represented on our board.

We’re also especially interested in receiving applications from people that have knowledge and experience in equality and/or human rights, and fundraising.

How to apply

Applications must be submitted using our online application form which you can find at https://www.closethegap.org.uk/jobs/.

If you are unable to use an online application process, please contact us at info@closethegap.org.uk

The deadline for applications is Sunday 5^th January 2025.

You will be notified by Friday 17^th January 2025 if you have been selected for interview.

It is anticipated that the interviews will take place remotely during the week commencing Monday 27th January 2025.

New survey for disabled women in the Scottish workplace

Are you a disabled woman or a woman with a long-term health condition? We want to hear about your experiences of work in Scotland, to help improve women’s equality. 

Close the Gap has been conducting a research project on disabled women’s experiences of employment in Scotland. Now, we’re launching a survey to gather more data to build a richer picture about disabled women’s working lives.

This survey builds on from our emerging findings, and will be part of wider research, with the aim that the inequalities women with disabilities and long-term health conditions face are better understood, and tackled, by policymakers and employers.

Take the survey here.

Who can take part?

The survey is open to disabled women and women with long-term health conditions who live in Scotland.

What do we want to know?

We want to hear about your experiences in the workplace on range of key areas including:

• recruitment
• access to training and development
• workplace culture
• discrimination
• violence against women

All responses will be anonymous. Findings from the survey will be analysed and used to inform the development of the final research report.

There’s also a chance to enter a prize draw to win a shopping voucher for your involvement. Prizes are 1 x £150 voucher, 2 x £75 vouchers, and 3 x £50 vouchers.

You can take the online survey here.

If you require an accessible Word version of the survey, please email info@closethegap.org.uk

The survey closes on Thursday 13 February 2025.

Violence against women (VAW) in the workplace: A barrier to equality

As 2024 draws to a close, the global 16 Days of Activism against Gender-Based Violence campaign remains at the forefront of vital discussions and efforts to eradicate violence against women and girls (VAWG). This year, the campaign, which runs annually from November 25^th (International Day for the Elimination of Violence against Women) to December 10^th (Human Rights Day), also marks the 30th anniversary of the Beijing Declaration and Platform for Action. Adopted in 1995, this seminal framework has influenced global efforts to promote women’s rights and outlines strategic objectives for addressing economic inequality, political representation, and violence against women (VAW). This campaign presents an opportunity to propel these efforts even further and aligns with Scotland’s Equally Safe strategy, which recognises that VAW is a cause and consequence of gender inequality.

In Scotland, the continued theme, ‘Imagine a Scotland without Gender-Based Violence’, focuses on the role of government and society in changing attitudes and behaviours while challenging the gender inequalities that underpin VAW. This pervasive issue affects every aspect of women’s lives, including their experience in the workplace. For example, one in four women in Scotland experience domestic abuse in their lifetime, with three-quarters of these women targeted at their workplaces. As well, 70% of women in Scotland reported having experienced or witnessed sexual harassment in the workplace and 80% never report to their employer.

Preventing VAW requires decisive and coordinated action to address women’s inequality across all aspects of society, including the workplace, where systemic gender disparities are often most pronounced. Employers must go beyond simply recognising the issue and take concrete steps to create safer, more equitable environments for women. This includes implementing comprehensive policies to prevent sexual harassment, undertaking training to identify and support victim-survivors of VAW, and embedding gender equality into recruitment, pay, and progression practices. By tackling these structural issues, organisations contribute to wider societal change, ensuring that progress in workplace equality drives efforts to eliminate VAW at every level.

The impact of VAW on women’s employment

The link between VAW, gender inequality and women’s labour market inequality are not widely acknowledged. However, VAW has profound implications for women’s labour market participation, driving economic and workplace barriers that erode financial independence and restrict access to meaningful employment opportunities. This can be seen in cases of financial and economic abuse. Financial abuse focuses on controlling a victim-survivor’s money and assets, while economic abuse encompasses broader tactics, such as sabotaging employment opportunities or restricting access to education. 95% of domestic abuse victim-survivors experience economic abuse, and 60% of domestic abuse victim-survivors in the UK are in debt due to economic abuse. Financial dependence and poverty can make it harder for women experiencing violence or abuse to move on and maintain employment.

Sexual harassment also remains a persistent issue for workplaces. A 2019 survey by the Trades Union Congress revealed that 68% of disabled women reported being sexually harassed at work, compared to 52% of women overall. The same survey found that more than half (54%) of disabled women had experienced two or more types of sexually harassing behaviour, and 45% had experienced three or more. Other research found that 63% of women aged 18-24 has experience some form of sexual harassment at work. Victim-survivors have also stated that they fear retaliation, damage to their professional reputation, or even dismissal if they report or speak out. These experiences discourage women from advocating for fair treatment or pursuing leadership roles. Women constitute approximately 49% of Scotland’s labour market. However, their representation in leadership positions remains disproportionately low. According to Engender’s Sex & Power in Scotland 2023, women hold just over a third of key positions of power, with men occupying two-thirds of these roles. This underrepresentation, combined with a lack of proactive measures to address workplace VAW, perpetuates a cycle where women are unable to fully advance in their careers.

Research from the World Health Organization indicates that 1 in 3 women worldwide have experienced rape and sexual assault in their lifetime. In Scotland, similar to most forms of VAW, rape and sexual assault is significantly underreported. Only 22% of victim-survivors of rape reported it to the police . Experiences of rape and sexual assault can severely affect the victim-survivor’s life in various ways. Victim-survivors often take time off work to seek help from specialist support agencies, attend doctor’s or counselling appointments or access legal support. Women also report that they struggle to find appropriate support in the workplace due to a lack of understanding of their experience.

It’s also important to recognise that the impact and experience of VAW is not uniform and women are not a homogenous group. Different groups of women experience multiple, intersecting inequalities and discriminations that overlap and combine to create different levels of inequality. Understanding these complex interactions is essential for developing targeted and effective interventions that address the specific needs of women in diverse communities. Policies and programmes must be inclusive and culturally sensitive, recognising the unique barriers faced by women with intersecting identities. Only through an intersectional lens can we create a comprehensive response to VAW that effectively supports every woman.

Equally Safe at Work: Advancing gender equality to prevent VAW

To effectively prevent VAW, it’s essential to address gender inequality within the workplace. Women’s experiences of VAW are deeply intertwined with the structural barriers they face in the labour market, such as inflexible working arrangements, low-paid part-time roles, and inadequate workplace support for victim-survivors. These challenges reinforce gender inequality and perpetuate conditions that increase women’s vulnerability to violence and economic dependency. Addressing these issues requires transformative action from employers, who play a critical role in fostering equitable and supportive working environments.

Equally Safe at Work (ESAW), developed by Close the Gap, is a pioneering accreditation programme designed to support employers in tackling VAW and advancing gender equality in Scotland’s workplaces. As a primary prevention initiative, ESAW supports the implementation of the Equally Safe strategy by guiding organisations in developing policies and practices that address the root causes of VAW. Through the programme, organisations are encouraged to adopt an integrated approach to workplace change, encompassing policy development, awareness raising, and capacity building. This includes implementing VAW policies, embedding gender-sensitive practices across recruitment and flexible working, and addressing negative workplace cultures. ESAW also emphasises the importance of data-driven change, supporting employers to collect and analyse gender-sensitive workforce data to identify and address barriers to gender equality. By providing a comprehensive roadmap, ESAW ensures that participating organisations are not only compliant with best practices but are actively contributing to the prevention of VAW and the advancement of workplace equality.

Findings from ESAW’s 2022–2023 evaluation in local government, NHS, and the third sector demonstrate significant progress among participating employers and an increased understanding of their role as employers in addressing VAW.

“It’s drawn linkage between the world of work and VAW, and causality between them. We have made effort to talk about this in comms to staff. The relevance to managers has become clearer.”

“Every time we review a policy now, we apply a gender lens to it – applying a gender lens to everything. We have selected policies and will build this into our normal policy review process.”

Looking forward

It is critical to recognise that advancing women’s participation in the labour market, while vital, is not a standalone solution to gender inequality or VAW prevention. Structural inequalities within the labour market, including the undervaluation of women’s work and occupational segregation, contribute to and sustain institutional inequity. In Scotland, women continue to dominate low-paid and undervalued sectors such as care, retail, and cleaning. Additionally, the Joseph Rowntree Foundation found that over 10% of workers in Scotland are trapped in persistent low pay, with 72% of them being women. These figures highlight the structural barriers that prevent many women from achieving economic independence and security. Addressing these disparities is crucial to eradicating VAW while also contributes to broader efforts to reduce poverty and promote gender equality.

Employers must commit to comprehensive changes that address the root causes of inequality in the workplace. This includes implementing gender-sensitive employment policies, promoting flexible working, providing comprehensive support for victim-survivors, and tackling the undervaluation of women’s roles. By doing so, workplaces can play a pivotal role in transforming the conditions that perpetuate gender inequality and VAW, ensuring safer, more equitable opportunities for all women.

For more detailed information on the gender pay gap and additional resources on promoting gender equality, please visit Close the Gap. Additionally, to find out more about our four-tier accreditation programme, and to access extensive support and guidance on addressing sexual harassment and preventing violence against women in the workplace, visit Equally Safe at Work.