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| Women in line for pensions boost | Women in line for pensions boost |
| (about 1 hour later) | |
| Thousands more women will be able to boost their state pension under a scheme announced by the government. | |
| Currently 90% of men but 35% of women qualify for the full £90.70 a week - many gave up work to care for children so did not make sufficient NI payments. | |
| They had been able to "buy back" up to six years but a Pensions Bill amendment will allow people to buy another six years with a one-off payment. | They had been able to "buy back" up to six years but a Pensions Bill amendment will allow people to buy another six years with a one-off payment. |
| Last year a similar plan was rejected by ministers, angering campaigners. | Last year a similar plan was rejected by ministers, angering campaigners. |
| The changes would affect men and women who reach state pension age between 5 April 2008 and 5 April 2015 and already have 20 years on their National Insurance record. | The changes would affect men and women who reach state pension age between 5 April 2008 and 5 April 2015 and already have 20 years on their National Insurance record. |
| 'Fair and affordable' | 'Fair and affordable' |
| It is estimated that 90% of those who will benefit will be women, although it will not affect women who are already over 60. | |
| Up to 555,000 people will be eligible to buy the extra years the Department for Work and Pensions estimates. | |
| But it expects only about 20% of these to take it up as it benefits those who do not qualify for pension credit, have 20 years' contributions and can afford to buy back years at £400 each. | |
| FROM THE TODAY PROGRAMME More from Today programme | FROM THE TODAY PROGRAMME More from Today programme |
| It is estimated that buying back an extra six years would mean an extra £18 a week from 2010. | |
| The move follows a long cross-party campaign, led by former Labour minister Baroness Hollis, but ministers had resisted efforts arguing it was not affordable. | |
| In 2007 the government was defeated in the House of Lords who voted through a similar amendment on the Pensions Bill. | In 2007 the government was defeated in the House of Lords who voted through a similar amendment on the Pensions Bill. |
| 'Secure future' | |
| It had indicated it would support the plan but later dropped the idea, saying it would not help the poorest pensioners. | It had indicated it would support the plan but later dropped the idea, saying it would not help the poorest pensioners. |
| BBC political correspondent Gary O'Donoghue said the government had been facing another defeat on the issue in the Lords next week. | BBC political correspondent Gary O'Donoghue said the government had been facing another defeat on the issue in the Lords next week. |
| Announcing the changes, Work and Pensions Secretary James Purnell said: "This is a fair, affordable and straightforward and it will give more people the chance of a secure future to look forward to in retirement." | Announcing the changes, Work and Pensions Secretary James Purnell said: "This is a fair, affordable and straightforward and it will give more people the chance of a secure future to look forward to in retirement." |
| Mr Purnell says the Pensions Bill means that by 2010 about 75% of women reaching state pension age would be entitled to a full basic state pension, and by 2025 that would rise to 90%. | Mr Purnell says the Pensions Bill means that by 2010 about 75% of women reaching state pension age would be entitled to a full basic state pension, and by 2025 that would rise to 90%. |
| 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." | 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. | 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. | 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. |
| The government had already announced it was to reduce the level of NI contributions needed for a full state pension. | The government had already announced it was to reduce the level of NI contributions needed for a full state pension. |
| From 2010 men and women will need to have paid contributions for just 30 years. Currently men need 44 years of contributions while women need 39 years. | From 2010 men and women will need to have paid contributions for just 30 years. Currently men need 44 years of contributions while women need 39 years. |
| There will also a new system of NI credits which will recognise caring for children or a disabled person in the same way as paid work. | |
| Will you benefit from these changes? Will you be retiring in 2010? How will the changes affect you? Send us your comments using the form below. | Will you benefit from these changes? Will you be retiring in 2010? How will the changes affect you? Send us your comments using the form below. |
| In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below. | In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below. |