Commons Sense

House of Commons · Westminster Hall

Construction Workers: Pension Age

12 July 2023 · 3 other contributors · 6,115 words

Opened by Owen Thompson SNP Midlothian

Responding minister: Guy Opperman

EmploymentBenefits & WelfareMental Health

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Owen Thompson raised concerns about construction workers: pension age in Westminster Hall. A government minister responded.

Key points

  • Concerns raised about the impact of raising the state pension age to 68 on construction workers, highlighting that 31% of construction workers are aged between 50 and 64.
  • Mr Thompson noted that only 36% of employees in the construction sector were paying into a pension, pointing to a 'pension black hole' within the industry.
  • Mr Thompson called for a full review into the pension issue within the construction sector to prevent financial hardship for workers in retirement.

Key requests to Government

Mr Thompson asks for urgent action from the government to address the pension savings gap in the construction sector. He proposes conducting a full review into the issue of pensions within the industry to find solutions that prevent an entire generation of workers from facing financial hardship in their retirement.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Owen Thompson SNP Midlothian

Mr Owen Thompson is concerned about the impact of raising the state pension age to 68 on construction workers. He highlighted that around 2.2 million people were working in construction across the UK, with 31% aged between 50 and 64. In Scotland alone, 54,000 out of 160,000 construction workers are within this age group. Research by Unite found that only 797,000 employees in the construction sector (or 36%) were paying into a pension, creating a 'pension black hole'. Additionally, he pointed to mental health issues exacerbated by construction's demanding nature and its male-dominated culture.

Other contributors (3)
  • Margaret Ferrier SNP Rutherglen and Hamilton West

    The hon. Member is congratulated for securing the debate, and it is suggested that construction workers should receive their pensions earlier due to the physical toll of their occupation and health risks such as asbestos exposure. A concerning skills gap is growing in the UK construction sector, leading to existing employees working longer hours. This could result in fatigue and poor health for many workers, affecting their retirement outcomes. Asked if the minister would recognise that many construction workers are self-employed without private pensions, suggesting improved pension education for the sector is necessary.

  • Matt Rodda Lab Reading Central

    I addressed the wellbeing of construction workers and the risks they face, calling for a review of health and safety legislation to ensure it is fit for purpose. I highlighted that unemployment has risen to 1.3 million people and 2.5 million individuals are out of work due to sickness. The state pension age changes were also discussed, with the current timetable set to rise to 67 by 2028 and then to 68 by 2046.

  • Ronnie Cowan SNP East Ayrshire and Arran

    The average age of construction workers is now in their 50s due to a gap in apprenticeship intake. This leads them to work longer hours, sometimes into what should be retirement age, in physically demanding conditions. Interrupted briefly to emphasise the need to address long-term neglect in the industry and utilise gathered experience.

Government Response

Guy Opperman

Congratulated the hon. Members for Midlothian and Inverclyde on their contributions, apologized for the absence of the actual Pensions Minister due to a pre-booked engagement, highlighted his past experiences in construction work, emphasized intergenerational fairness in pension provision, discussed the state pension increase, mentioned Pension Awareness Day, detailed improvements from automatic enrolment policies with statistics (construction workers' private pensions increased from 30% to 79%), addressed self-employed pension options, outlined the universality and clarity of the modern state pension rules, cited evidence against early acceptance of partial pension benefits, noted £94 billion spent to support the most vulnerable over two years, emphasized logistical challenges in introducing differential assessment for pension age, discussed reskilling efforts including apprenticeships (5,454,000 since 2010), mentioned midlife MOT initiative, and referred to various reviews and initiatives aimed at supporting older workers and those with disabilities.

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