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Women get 'fairer deal' on top-ups for a better state pension
Nicholas Cecil, Chief Political Correspondent24 Oct 2008
HUNDREDS of thousands of women are today set to get new rights to pay top-ups to get a full State pension.
Up to 555,000 people will benefit from the shake-up which will allow them to make up for not having paid enough National Insurance in the past to be entitled to a full pension on retirement.
Many of the people who have missed out are women who stayed at home to bring up children, carers and women whose husbands served in the armed forces.
Currently, individuals can only make payments to catch up on six years of missed NI contributions, but this is being doubled to 12 years under the Pension Bill.
The reform will apply to people who reach state pension age between 6 April this year and 5 April 2015 and who have at least 20 years on their National Insurance record.
Announcing the change, Work and Pensions Secretary James Purnell said: "The Pensions Act will transform pension provision and finally bring equality for women and carers.
"By 2010 around 75 per cent of women reaching state pension age will be entitled to a full basic state pension, rising to 90 per cent by 2025, compared with around 35 per cent today."
The move marks a change of heart for the Government. Last year it overturned an amendment to the Pensions Bill designed to give people the opportunity to buy back extra years of missed contributions.
Baroness Hollis of Heigham, who has campaigned for ministers to act on this inequality, said: "The next stage is to tell women heading for retirement that this is absolutely worth doing.
"Even if they were to take out a commercial loan at retirement to make up five or six missing years, they would still be better off."
Age Concern, which has a long-running campaign to change the pension rules, welcomed the U-turn.
A spokesman said: "We are absolutely thrilled. The Government should be congratulated for finally delivering a fairer deal for women and carers."
Reader views (8)
Clearly Steve has been left on the shelf and is a little bitter....
- Jc, London, 24/10/2008 15:42
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I paid married woman's stamp after I had my children, as one was persuaded to do this. I am paying for it now as I only receive £55.00 per week which doesn't even pay my community charge, take it with one hand and give it back with the other.
- Linda O'Shea, London, 24/10/2008 15:13
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to Steve, London...are you single and bitter by any chance??? oh for sure, women are really going to 'better' themselves on a state pension are'nt they?
- Toni, Barnet, 24/10/2008 15:09
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Those women in the worst plight are those who returned to work and paid "married woman's stamp" which was a lower rate NIC than the regular payments.
The goevrnment does not count these years towards a pension yet does so for those who could afford to take time off to look after their children.
- Dereck, London, England, 24/10/2008 13:10
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Is this fair?A lot of women who have children never work again,assuming they worked in the first place.It's encouraging them to breed to better themselves.
- Steve, London, 24/10/2008 11:18
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Take out a loan to top up your pension are you mad!
Even in this climate of poor lending the goverment is still coming up with hair brain schemes to get you to part with your cash.
It will cost £400 to buy a years top up,so if i buy ten years thats £4k and if i shuffle off this mortal coil earley who wins!
Of course we all know who,the goverment.
If they believe people are entitled to a full pension then there should not be any constraints or extra payments.
Can you imagine the debate in the Cabinet"look chaps we need to get some more cash off the public,we cannot tax them anymore ,the economy has fallen flat,lets have another go at pensions"
- Mike B, Lincoln UK, 24/10/2008 10:59
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The U.K. pension system could have been improved dramatically and made fairer for all if Alan Johnson had gone ahead with introducing the "citizens' pension" that he favoured as Pensions Minister. As Chancellor, Brown vetoed it before it got serious study. Every other country in the Western World has pensions based on years of residency, not years of working as in the U.K. A pension based on residency solves the problem of women who aren't long (or at all) in the work force. Such residence-based simplified pension system wouldn't have cost any more than the present jumbled mess. It's sad that Brown couldn't have had the foresight to consider it.
- Phil Jones, London UK, 24/10/2008 10:42
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I will be 65 in 2021. What effect will this have on my pension entitlement?
- M Magari, WEMBLEY, MIDDLESEX, 24/10/2008 10:37
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