Pensions Bill — 4 Jul 2007 at 16:48

The majority Ayes accepted an amendment to the Pensions Bill which said:

"( ) With effect from the commencement of this section or 1st November 2007, whichever shall be earlier, the contributor may at any time up to state pension age, make voluntary (Class 3) contributions for any period of his or her working life, in respect of up to 9 years, whether consecutive or not, which for any reason shall not have satisfied the conditions for a Qualifying Year or Years, so that such year or years shall then be deemed to be a Qualifying Year or Years.""

The effect of this is that people, particularly women, without sufficient qualifying years (of paying National Insurance contributions) to receive a full state pension can pay extra to get more qualifying years. Years don't qualify if they are spent in caring for children or elderly parents or in an assortment of part-time jobs rather than a full-time job. Until 2010, 39 qualifying years are required to get a full State pension; from 2010 30 qualifying years will be required. In some areas only 12% of women qualify for a full State pension. The Government's objections were to the cost and to the likelihood that ex-patriates would take advantage of this to increase their entitlement to a British State pension.

Debate in Parliament | Source |