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MP gives cautious welcome to women pensions announcement
November 1, 2008 3:00 PM
MP for Dunfermline and West Fife Willie Rennie has given a cautious welcome to the Government's announcement that women who have incomplete national insurance contributions as a result of taking time off work to raise families will be able to buy up to six years of contributions to boost their state pension.
Under amendments to be made to the Pensions Bill, those who reach state pension age between 2008 and 2015 will be able to buy an additional six years of contributions, providing they have 20 years of contributions. This will mean that, by 2010, 75 percent of women will qualify for a full basic state pension, compared to just 35 percent who qualify today.
Mr Rennie and his Liberal Democrat colleagues have long been campaigning for improvements to be made to pensions legislation to help women. They have repeatedly supported moves in the House of Commons to change the regulations but, until now, the Government has repeatedly voted down such changes.
Although he welcomed the Government's change of heart, Mr Rennie has expressed disappointment that the concession is so limited. He said:
"Sadly, these changes will not benefit those women who are the worst off and facing the bleakest retirement. It doesn't apply to women who have already retired and who are not receiving a full state pension. And it doesn't apply to those who have made under a quarter of full contributions, who currently get no basic state pension at all."
The Liberal Democrats have proposed the replacement of the basic state pension with a universal Citizens Pension, which would be paid to everyone over state pension age and which would be linked to earnings, to protect every pensioner from poverty.
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