Hundreds of thousands more women will have the right to claim a full state pension from 2010, the government is expected to confirm later.
Hundreds of thousands more women will have the right to claim a full state pension from 2010, the government is expected to confirm later.
At present, 90% of men but just 35% of women qualify for the full £87 a week.
At present, 90% of men but just 35% of women qualify for the full £87 a week.
This is because many women who have given up work to have children or care for relatives have not paid National Insurance for the minimum 39 years.
Many women who gave up work to care for children or relatives have not paid National Insurance for the minimum 39 years. This will drop to 30 years.
Ministers are due to announce that the limit will be lowered to 30 years for men and women from April 2010.
Up to 555,000 people could benefit from the policy change, according to the Department for Work and Pensions.
Ministers are due to announce that the new limit will be introduced for men and women from April 2010.
In addition, those who have missed out on National Insurance payments will be able to buy an additional six years' contributions, giving many more people the chance of the full pension.
In addition, those who have missed out on National Insurance payments will be able to buy an additional six years' contributions, giving many more people the chance of the full pension.
Credits
This will double the current amount people are able to buy in order to reach the minimum required for a full pension.
This will double the current amount people are able to buy in order to reach the minimum required for a full pension.
'Credits'
These moves will mean that by 2025, 95% of women reaching pension age will be entitled to a full state pension, ministers say.
These moves will mean that by 2025, 95% of women reaching pension age will be entitled to a full state pension, ministers say.
BBC political correspondent David Thompson said the government had resisted such moves until now, despite a cross-party campaign led by former Labour minister Baroness Hollis.
BBC political correspondent David Thompson said the government had resisted such moves until now, despite a cross-party campaign led by former Labour minister Baroness Hollis.
But faced with mounting pressure - and the possibility of defeat when the Pensions Bill goes before the House of Lords next week - ministers have had a change of heart, he said.
But faced with mounting pressure - and the possibility of defeat when the Pensions Bill goes before the House of Lords next week - ministers have had a change of heart, he said.
Work and Pensions Secretary James Purnell is also expected to announce a new system of NI credits which will recognise caring for children or a disabled person in the same way as paid work.
Work and Pensions Secretary James Purnell is also expected to announce a new system of NI credits which will recognise caring for children or a disabled person in the same way as paid work.
Mr Purnell told the Daily Mail: "The Pensions Act will transform pension provision and finally bring equality for women and carers, so that by 2010 around 75% of women reaching state pension age will be entitled to a full basic state pension, rising to 95% by 2025."
Mr Purnell told the Daily Mail: "The Pensions Act will transform pension provision and finally bring equality for women and carers, so that by 2010 around 75% of women reaching state pension age will be entitled to a full basic state pension, rising to 95% by 2025."
Charity Age Concern told the newspaper it was "thrilled" with the decision.
It seems to me there would be a lot of merit in simplifying the whole system - making it fair for everybody Ros Altmann Pensions Action Group
Dr Ros Altmann, head of the Pensions Action Group, told BBC Radio 4's Today programme: "The idea is that the cost of buying a year's worth of extra pension is much less than the value of the extra pension you will get during a normal period of retirement."
Buying an extra year's worth of pension should cost around £400, and many women will find it a good investment, even if they have to borrow money to afford it, said Dr Altmann.
But she warned that women should take advice before committing money, as a sizeable proportion of those on low and middle incomes will anyway be entitled to £130 a week in state pension under the pension credit.
And she added: "Obviously, some women will say 'Why do I have to buy it, why don't I just get it as an entitlement?' Some women could be fearful that if they are not well and die quickly they won't get the value."
Dr Altmann said it would be better to reform the whole state pension system so that it is not dependent on payment of National Insurance contributions because women are being made to "jump through hoops".
She said: "It seems to me there would be a lot of merit in simplifying the whole system, making it fair for everybody, women, carers, whoever, disabled people.
"You know, whether or not you've worked in the waged labour force perhaps isn't the only way, or whether you've cared in the right way, to accrue a decent state pension."
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