MPs ask for non-working women within 15 years of retirement age to receive benefit of husband’s NI contributions in their pension

4th April 2013

The MPs of the Work and Pensions Committee have called for an amendment that would allow women within 15 years of their retirement and who hoped to rely on their husband’s national insurance contributions for a state pension to still be able to do so.

The committee has already welcomed the Government’s decision to allow the continuance of the pension for those who paid reduced NI contributions under the Reduced Rate Election of married woman’s stamp. The committee now wants a similar compromise extended to this second group.

The report says: “One option might be that women in this position who are within 15 years of State Pension Age should be able to retain this right. We recommend that the Government assesses and publishes the cost of providing this option for the relatively small number of women affected. We believe that, for those further from retirement, there is sufficient time for them to plan on the basis of the new rules.”

The committee says it is also concerned about another group of women set to lose out who might have expected to be able to retire. Some 85,000 women born between 6 April and 5 July 1953 who believed they would suffer are now covered by the new pension.

But the rest of the cohort born between 1952 and 1953 may not benefit. The committee is unsure whether this group would benefit from being included in the new pension reform anyway. It notes that they may be eligible for pension credit – under the current system – or could see their state pension upgraded by deferring but it wants this clarified.

The committee says that it wants communication to women about the change should be given priority in any government communications.

Useful links:  The Pensions Advisory Service

This article from Scottish Widows pension expert Ian Naismith for trade website Money Marketing is primarily aimed at financial advisers. But actually it is interesting because Ian gives examples of some of the choices – or hobson’s choices – people nearing retirement may face.


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