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Betrayal of stay-at-home mothers: Millions lose state pensions after Government U-turn
Last updated at 16:52pm on 21.12.07
More than eight million women who took time out of work to care for their children have lost their chance of a full state pension
Chris Grayling: On the attack over pensions
The Government's decision to deny millions of women a full state pension is a "slap in the face" for mothers who put the upbringing of their children before their careers, campaigners say.
Age Concern said ministers were abandoning a generation of women to a retirement in poverty by refusing to allow them to make up for missed National Insurance contributions.
Two thirds of women are not eligible for a full state pension because they have not accumulated enough NI contributions, usually because they took time out of work to bring up their children.
Campaigners had hoped the Government would back a scheme to allow women to top up their contributions by as much as nine years.
But earlier this week ministers slipped out an announcement that they would not do so - and that female pensioners would have to rely on the pension credit to make ends meet.
Junior minister Lord McKenzie said the Government had rejected the top-up scheme because it would have cost taxpayers more than £1billion and because there was no way to target the money to the poorest pensioners.
Michelle Mitchell of Age Concern said: "This is a slap in the face for thousands of women in or approaching retirement who are being penalised for taking time out of work to care.
"Everyone approaching retirement should be given the opportunity to make more flexible national insurance contributions, to ensure an adequate income in later life.
"The Government's shameful U-turn on this important amendment will condemn many more women to poverty."
Yesterday ministers insisted they had not made any U-turn, saying they never made any commitment to allow women to top up their contributions.
In the summer the Governmentwas defeated in the Lords on an amendment that would have allowed nine years' top-up of NI contributions.
The amendment was thrown out by the Labour-dominated Commons in the autumn, but ministers promised a review.
On Monday, junior work and pensions minister Lord McKenzie told peers that the outcome of this review was that the scheme should not go ahead.
Conservative work and pensions spokesman Chris Grayling said: "Last summer, Gordon Brown promised us a fresh approach to politics and spoke about the need for transparency and honesty.
"What this issue has shown us is a Government that is willing to raise expectations and then dash them behind the scenes without admitting it's changed its approach.
"The Government told these women it would do something then changed its mind without telling anyone."
Liberal Democrat work and pensions spokesman Danny Alexander said: "It is absolutely inexcusable for the Government to sneak out this announcement, which potentially affect hundreds of thousands of women.
"There was cross-party support for changes which would have allowed women to make up their contributions and claim a full pension.
"It was pacified by a Government pledge to look at the problem and change its plans.
"Yet ministers have broken their promises and left many women who have contributed immeasurably to society with no chance of a full pension.
"We will renew our campaign for these women and not let the Government off the hook."
Reader views (18)
This is so New Labour, so Gordon Brown: cynicism, broken promises and a sneaky announcement. Brown keeps telling us about his moral compass, but it never seems to guide him in an honest or straightforward path. The man truly is a disgrace.
- James Elliott, Eastbourne UK
People like Monica make me sick, if you have stayed at home to look after your children then you have done the most important job in the world. Monica if you have children I pity them with your attitude and if you don't then you have obviously been blessed in other way, like your heart, not. You just sound bitter.
- Anon, US
And still they wonder why we don't trust them? Do they really not understand that people make life decisions based partly on the information they are given about the consequences?
By the way, I share Monica's feeling that I've paid my way and I'd quite like others to do the same but this proposal was about doing just that so it seemed an excellent idea (for those who trust the government to hand over the pension at the allotted time - I for one am giving the government as little as possible because it seems there won't be any state pension by the time I get there!).
- Suzanne, London
Gordon Brown has no shame. What a slimey thing to think he can sneak out just before Christmas. New Labour, the anti-family party (whatever they say to the contrary). Despicable lot.
- Shirley, London
Rule #1
Never believe anything New Liebour tells you or any assurances they give.
Rule #2
Do everything possible to move abroad.
- Adam, Harrow, UK
Clearly now the government has seen the birth rate jump in the last few days, they are going about reducing a lot of the benefits and promises that they put in place to encourage more folks to have kids. The UK is so expensive if you have kids - you both have to work to pay the high mortgages, childcare costs are sky high. The quality of life for families just seems to be going down, while the costs are going up. Since having a baby 9 months ago, we're considering moving to New Zealand, we're getting fed up with working hard and getting so little out of it.
- Glenn, London, UK
Monica, "Why should people get the same as me when they have not paid enough contributions" - did you somehome manage to completely miss the part that said this was about giving women the right to top up their contributions by paying money in, not just giviing them a freebie?
- Emma, Staines, UK
Nu Labour is at it again. Do you think they have any idea of which direction they are going in. They dither about and then eventually make a decision only to reverse it later. I don't think they could organise anything!
- Bill, London
Message to Monica, I think you should go and work for Gordon, you clearly have no sense of what is right or wrong.
Read the paragraphs correctly and you can clearly see that the proposal is for women to buy back their contributions, meaning that it costs them money, ergo not free.
In the last paragraph the ministers says that they can apply for means tested benefits, ergo these will be free...this is not what the women want!
With this attidude, I'm relieved for the children you didn't have!
- David, London
I've worked full-time since 15 and will have to carry on working until I'm 63 to receive my full state pension. I've never had a penny from the state to help me. Maybe if the stay at home mums were to set aside their children's allowance then that will pay for the shortfall in their state pensions!
- Sue, Orpington, Kent
"Ministers have dropped plans to give women with a partial pension entitlement the chance to make up the shortfall before they retire, it emerged last night. [...] In July ministers said they were willing to allow women with a shortfall to make lump sum payments worth up to nine years of contribution to boost their pensions."
Presumably, women (like men) will still be able to make lump sum payments (i.e. voluntary Class 3 National Insurance contributions) worth up to 6 years of contribution to boost their pensions? In other words, presumably, the government has "simply" now decided not to extend the current 6 years limit to 9 years?
- Richard Hancock, Bracknell, UK
"Bottler Brown" The amount of U-turns made by this Government is amazing. If not the election, reducing detention time, pay award to police, EU treaty... amazing!
- Tony, London
The final betrayal, time to end this miserable government's time in office.
- Brian, Wiltshire
Shouldn't that headline read: "Another government U-turn"?
- Marianne, SW France
Monica,
I think that you have missed the whole point. This is about allowing women the right to pay in extra to make up the shortfall in contributions. They would have to buy back the missing years, not simply be given them.
- Sarah, London
Monica,
Who is going to support you in your old age? Who is going to make sure food is grown and produced and sold? Who is going to run the powerstations to give you heat and light? Who is going to care for you in times of sickness? Who is going to entertain you?
The children of the people you've just insulted. Now you've finished working and have no care for families I hope you're intending to become a hermit and have nothing further to do with society.
- Derek, Scarborough, UK
Too right. I worked from the age of 16 to 60 and earnt my pension. Why should people get the same as me when they have not paid enough contributions. Getting pregnant is a personal issue, child benefit is ridiculously high, why are people paid to have children. I was always taught if you cannot afford it do not have it. It bewilders me.
- Monica, Portsmouth
The Government is clearly prepared to betray many women who have done the best by their children. Gordon is way off the mark on many things but women do of course have very long memories and will of course take this into account when they vote at the next general election.
- Mike, Bedford England
