Day: August 14, 2024

TUC: It’s Gender Pension Gap Day – and we need to talk about Carers Credit

Today is Gender Pension Gap Day – the point of the year from which, if women received their pension at the same rate as men, they wouldn’t get another penny until January.

The fact that we reach this point in the middle of the summer holidays is a stark illustration of the levels of inequality in our pension system.

At just under 37.9 per cent, the gender pension gap is much wider than the gender pay gap and, according to annual research by Prospect, it has barely budged in recent years (it stood at 40.7 per cent in 2015-16 when the trade union started measuring it).

The result is that, taking into account all forms of pension, retired women today have incomes around £7,000 a year lower than retired men.

What causes the gender pensions gap?

There are three main drivers of the gender pensions gap:

  • Different lifetime working patterns that mean women are more likely to take time out of the labour market or work part-time, most often because of unpaid caring responsibilities
  • The gender pay gap, exacerbated by a workplace pension system that excludes many low earners altogether
  • Differing levels of state pension entitlement

The impact of unpaid caring

Previous TUC analysis has highlighted the role of the pay gap – and a workplace pension system that excludes many low earners – in leaving women poorer in retirement.

But the most significant factor in the wildly unequal pension outcomes for men and women is the first bullet point – women are much more likely than men to spend time out of work or working part-time because of caring commitments than men.

This matters because our pension system is designed so that the typical worker will get around half the retirement income they need from the State Pension and half from a workplace pension.

National Insurance credits generally recognise the value of unpaid work such as caring so that people continue to build up state pension entitlement, but those out of paid work stop building up their workplace pension.

These contribution gaps are the biggest factor in women with a defined contribution pension approaching retirement having a pension pot less than half the size of men on average.

How wide is the ‘economic activity gap’?

New TUC analysis shows that women are vastly more likely than men to be out of paid work – and therefore unlikely to be building up a workplace pension – because of caring responsibilities.

This disparity can be seen in every age group, and is particularly wide for groups who face additional barriers in the labour market, such as disabled women and BME women.

Overall, women are 4.5 times more likely than men to be economically inactive – the Office for National Statistics’ term for people neither in or looking paid work – because of caring responsibilities.

The chart below shows that rates of economic activity due to caring responsibilities peak between the ages of 25 and 44, with more than one in 11 women aged 35-39 in this category.

The gap is highest in the late 20s, with women aged 25-29 more than 14 times more likely than male counterparts to be out of paid work because of caring commitments.

Source: TUC analysis of ONS Labour Force Survey, Q1 2024

This is perhaps unsurprising, with working mums much more likely to take time off work to look after kids.

It has a particularly large impact on pension saving, however. These are the years when workers typically have higher incomes than when they are just starting out, meaning their pension contributions are greater, but they are also far from retirement, so those contributions will remain invested for longer and have more time to grow.

The charts below show that BME women are particularly likely to be affected. While white women are four times more likely than men to be out of work looking after a loved one, the figure rises to 6.4 times more likely for BME women.

Previous TUC analysis has highlighted the impact this has on older BME women, with almost one in three who leave the labour market before they reach State Pension Age doing so because of caring responsibilities.

Source: TUC analysis of ONS Labour Force Survey, Q1 2024

And the chart below shows that people who are themselves disabled, are also much more likely to be out of the labour market because of caring responsibilities to others.

Disabled women are almost nine times more likely than non-disabled men to be in this position.

Source: TUC analysis of ONS Labour Force Survey, Q1 2024

Tackling the gender pension gap

The TUC has long called on governments to get serious about measuring the gender pension gap, and set out a plan to reduce it.

The last government did begin reporting on the gender pension gap (it’s measure looks only on the differences in workplace pension built up by men and women and put the gap at 35 per cent).

But this is only the first step, and the new government must build on this by setting out a comprehensive plan to reduce the gap

The recently announced Pensions Review is a great opportunity to do this, and we believe this should include an explicit strand on tackling pensions inequality.

We have previously made recommendations to bring more low paid and part-time workers into workplace pensions by expanding auto-enrolment, and to address the crisis in our social and childcare systems.

Time to give carers credit

But the figures above make clear that it will be difficult to improve women’s retirement incomes without improving the way our pension system recognises the value of unpaid care work.

This would require replacing the workplace pension contributions lost by those out of paid work, and there have been a number of proposals to introduce a Carers Credit that would do this.

We believe the most straightforward way of doing this is for those out of the labour market with a young child and registered carers to build up additional State Pension, on top of the flat-rate New State Pension.

This would be essentially reintroducing a feature that was removed in 2016. Before this point, people looking after children under 12 and registered for child benefit built up State Second Pension credit in addition to a credit towards the basic state pension.

When it was removed this credit was worth an extra £1.80 a week in pension in 2015-16 terms. So a worker who took five years out of paid work to raise kids, for example, would have built up almost £500 a year in additional State Pension over these years to plug the gap in their workplace pension contributions.

There is no single policy that would fix the gender pension gap, but introducing (or reintroducing) a Carers Credit would be a very significant step in the right direction.

Suicide in Scotland: Minister responds to ‘distressing’ report

Mental Wellbeing Minster Maree Todd has described a rise in the number of probable suicides last year as “distressing”, saying the increase is driving a determination to deliver change.

National Records of Scotland figures show there were 792 probable suicides in 2023 – an increase of 30 on the previous year.

The Scottish Government is taking action jointly with COSLA to reduce the number of deaths by suicide. This ensures government and local services work together to support anyone at risk of suicide or affected by it, while tackling underlying factors that can lead to suicide, such as inequalities, stigma and discrimination, which have been exacerbated by the pandemic and cost of living crisis.

Self-harm is also a risk factor for suicide and last year saw the launch of the world’s first action plan focussed solely on tackling the issue. This includes funding for a new service where anyone affected by self-harm can get compassionate support, without fear of stigma or discrimination. 

Mental Wellbeing Minister Maree Todd said: “This report makes for distressing reading and my sincere condolences go out to all those who have been affected by the loss of a loved one by suicide.

“I am determined that together with COSLA and other partners we reduce the number of deaths by suicide and improve the nation’s mental health as a whole.

“The ambition and innovation in Scotland’s suicide prevention approach is widely recognised. However, we know there is always more to do.

“We are working hard with communities and services to help people talk more openly about suicide and offer compassionate support. We are prioritising reaching more people at higher risk of suicide, including those living in poverty, middle aged men, and LGBT communities. 

“We are launching an online portal to ensure people feeling suicidal know where to go for help. The introduction of suicide reviews this year will also help us spot missed opportunities to support people and importantly use that learning to redesign services.

“Our wider actions around Mental Health are also helping to prevent suicide. They include funding more than 800 additional mental health workers in A&E departments, GP practices, police custody suites and prisons, and investing in our Communities Mental Health and Wellbeing Fund which prioritises suicide prevention and social isolation projects.”

Chair of the Scottish Government’s Suicide Prevention Academic Advisory Group Professor Rory O’Connor said: “Similar to other countries, sadly an increase is not unexpected given the challenges of recent years, including the cost of living crisis and the economic downturn which have led to financial and social hardship for so many.

“Every single death is heartbreaking, leaving behind devastated families, friends and communities.  We need to continue to do everything we can to ensure that those at risk of suicide receive the care and support that they need when they need it.” 

COSLA President, Councillor Shona Morrison said: “As the voice of Local Government in Scotland, COSLA has taken a strong position on the importance of the mental health and wellbeing of our communities and the need to tackle inequalities that contribute to suicide risk.

“There is a considerable amount of work taking place across local areas in Scotland which supports delivery of the Suicide Prevention Strategy.

“We firmly believe that no death by suicide is acceptable, and we remain committed to working in partnership with Scottish Government to realise the ambitions of our joint strategy ‘Creating Hope Together’ to reduce deaths by suicide, whilst tackling the inequalities which contribute to suicide.”

Anyone affected by these issues can access support from the following services:

Suicide Prevention Scotland responds to 2023 death by suicide data

Suicide Prevention Scotland has responded to today’s release of data from National Records of Scotland (NRS) for 2022  which shows a small year on year increase in deaths by probable suicide.

Statistics released by NRS show that there were 792 suicides registered in 2023, a 3.9% increase on 2022 (which was up 1.2% on 2021’s data). 

It’s the highest number of deaths by suicide since 2020 (805).

To understand how this increase fits into the broader trend, it is essential to consider not just year-to-year changes but also the five-year average, which provides a more stable and reliable measure of trends over time. 

The number of deaths by suicide in 2023 at 792 is very slightly above the previous five-year average (787 for 2018-2022).

Compared to the previous female five-year average (208 for 2018-2022), 2023 shows a decrease of six deaths. Compared to the previous male five-year average (579 for 2018-2022), 2023 shows an increase of 11 probable suicides.

The average age of death by suicide has fallen from the previous year. In 2022 this was 48.2 years; in 2023 it was 46.6 years.

The overall increase in the past year can be attributed to an increase in male suicides by 34 (590). There was a reduction in female suicides by four (202). The rate for men remains three times that of women. 

Looking back over the previous few years, there was a long downward trend in suicide rates from 2011-2017. 

This was followed by an increase in 2018 and 2019, then by a decrease in 2020 and 2021, with the lowest numbers seen since 2017 (680) in 2021 (753). 

The numbers released for 2022 increased very slightly (762). 

The further increase in numbers for 2023 suggest that the downward trend may have stalled, however it is too early to say as several years’ data are needed to confirm an overall trend.

Over the last five years, Scotland’s suicide rates have shown fluctuations, with some years experiencing notable increases. 

For example, in 2018, there were 784 deaths by suicide, a sharp rise from previous years, particularly among young people aged 15-24. The numbers slightly decreased in 2021 to 753 but rose again to 762 in 2022.

Probable suicides in the 15–24-year-old group have increased by ten to 79 in 2023, from 69 in 2022. 

However, the category with the highest increase was the 35-44-year-olds (up 22 to 175), repeating a pattern seen for the previous year’s data, where this age-group also had one of the highest increases in suicide numbers for 2022 (up 22).

In contrast, the biggest reduction seen is in the 65-74-year-old group, which has fallen by 28 to 63 in 2023 from 91 in 2022. 

There has also been a slight decrease over the last year in the 75-84-year-old group, with numbers staying the same in the 55-64-year-old age group.

The decrease in these older age groups was driven mostly by male suicides, which decreased by 22 to 99 in the 55-64-year-olds, and by 12 in the 65-74-year-olds. 

In contrast, the increase seen for 2023 was driven mostly by male suicides in the 35-44-year-old group, which were up 23 to 144, and the highest number in this age category since 2011.

Although 792 people died by suicide in 2023, this number does not consider changes in the population size or how the number of people in different age groups change as time goes by. 

Therefore, suicide rates corrected for these changes give more meaningful comparisons. 

When we use these corrected suicide rates, the highest rates seen in 2023 was among 35-39-year-old males (44.3 per 100,000), an increase of 9.8 from 34.5 in 2022. 

The next highest rate was for 40-44-year-old males (42.1 per 100,000), an increase of 5.4 from 36.7 in 2022. 

In comparison, the highest rate for female suicide rate increased by 7.0 to 14.9 in the 50-54-year-old group.

In 2023, the suicide rate in the most deprived areas was 20.9 per 100,000, compared with least deprived areas of 8.6 per 100,000. 

This means that deaths by suicides in 2023 occurred 2.4 times more in our most deprived communities, an improvement on inequality seen in previous years e.g., 2022 which was 2.6 times more and the previous five-year average 2018-2022, which was 3.1 times more.

In September 2022, the Scottish Government and COSLA (Convention of Scottish Local Authorities) launched the country’s new long-term suicide prevention strategy and action plan, Creating Hope Together. 

To deliver the new strategy, a new community of organisations and people, Suicide Prevention Scotland, has been established.

Last week it reported on progress made during its first full year in operation. 

Creating Hope Together sets out four key outcomes. Partnership is at the heart of the approach, with a range of strategic partner(s) appointed to drive delivery. They are:

  • Creating a safer environment that protects against suicide across the whole of Government and society – Samaritans
  • Improving understanding of suicide and tackling stigma – SAMH
  • Providing compassionate support for anyone affected by suicide – Penumbra & Change Mental Health
  • Working in a connected way, that always draws on evidence and lived experience – Public Health Scotland 

A new National Suicide Prevention Advisory Group (NSPAG) has also been established. 

Led by Rose Fitzpatrick CBE QPM, its members represent many of the sectors leading work on the social determinants of suicide. This includes poverty, as well as partners who are working in key sectors affected by suicide — such as the criminal justice sector.

Their role is to provide advice to Suicide Prevention Scotland, Scottish Government and COSLA which helps us focus on the complexity, intersectionality and inequality of suicide. 

NSPAG recently published its first year report and recommendations.

Suicide Prevention Scotland’s National Delivery Lead Haylis Smith comments: “The fact that 792 people died by suicide is a stark reminder we still have so much more to do – and we are determined to keep working together do it. 

“We don’t just think about the number of people who die by suicide on this day in August, they are in our thoughts every day – they help drive us to do this work – to try to help prevent future deaths.

“Every death by suicide is one too many and we need to continue to build our understanding of what we need to do and how we need to do it by listening to the experts, those who study and research suicide and people who have lived and living experience. 

“We’ll use that understanding to help us develop and deliver more action that will save lives.

Ross Cunningham is part of Suicide Prevention Scotland’s Lived Experience Panel. Ross, who lives in Orkney, has suffered from depression and suicidal thoughts and is an advocate for social prescribing. He said:

“The grief experienced by so many people across Scotland who have had to bear the death of a loved one to suicide in 2023, or any year, is a heartbreak beyond words. The loss is something family and friends will tragically have to live with for the rest of their lives.

“Those we have lost aren’t just a statistic, they were people living in Scotland who had a name, had parents, had friends and family who loved them very much, had hobbies, had dreams and ambitions, and had a life of their own – one which cruelly came to an end when they believed that suicide was their only option.

“We must not let the immense loss of life to suicide that these figures represent, and those before it, be in vain. This should be a wake up call to governments, policy makers, employers and wider society that more must be done in all parts of Scotland – in every village, town, city and island community – to take preventative actions and to further support those suffering from depression and suicidal thoughts.

“Everyone can take little steps each day, recognising that you may need to talk to someone or seek support about your own mental health, or even if it’s just checking in with a friend on WhatsApp or phoning a loved one you know who might be going through a difficult time.

“Please don’t suffer in silence, don’t bottle things up. If you are going through something, know that support is out there – and the first step to getting that support is speaking to someone about how you’re feeling.”

Nadine Dougall, Professor of Mental Health & Data Science at Edinburgh Napier University and a member of the Suicide Prevention Scotland Academic Advisory Group comments: “Each death by suicide is an enormous tragedy, leaving devastating and lasting impacts on families, friends, and communities. 

“Suicide is complex and rarely caused by a single factor, needing a whole-population approach to prevention.

“While reducing deaths by suicide is essential, it is also crucial to understand long-term trends and the influence of various factors to guide effective suicide prevention efforts. 

“Notably, deaths by suicide among men aged 35-44 have increased, with the suicide rate reaching 44.3 per 100,000 people – the highest since 2011. This calls for further investigation to focus suicide prevention activities. Although there have been some gains in reducing inequality in suicide rates, much more needs to be done to sustain and improve these efforts.”

If you or someone you know is struggling with their mental health or feeling suicidal, please don’t hesitate to ask for help by contacting your GP, NHS24 on 111, Samaritans on 116 123 or Breathing Space on 0800 83 58 87.

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