110,000 women set to lose £10,000 each for being born too early says Webb (Newham Borough Liberal Democrats)

Newham Borough Liberal Democrats <info@libdems.org.uk>

110,000 women set to lose £10,000 each for being born too early says Webb

March 4, 2010 2:14 PM
Originally published by UK Liberal Democrats

Government reforms mean that from 6 April this year, both men and women will need to make 30 years of National Insurance payments to be eligible for the full state pension.

The changes mean that a woman who has paid National Insurance for 30 years whose 60th birthday falls on 6 April would be entitled to a full state pension, whereas a woman who was born a day earlier and has worked just as long would only be entitled to three quarters of this - or around £75 a week in 2010-11. This could mean women retiring this year before the 6 April cut off could miss out on as much as £10,400 over the next decade.

Commenting, Liberal Democrat Shadow Work and Pensions Secretary, Steve Webb said:

"The April 2010 changes to the rules on state pensions are entirely welcome and long overdue. But they create a cliff-edge for those who reach pension age immediately beforehand.

"Many of these women could lose out on up to £10,000 simply for being born a few days too early.

"Big changes like this should be phased in. Even now, the Government could look again at how it is working out pensions for women retiring in 2009/10 and consider giving them some of the benefit of the new rules."