Low paid workers missing out on full flat-rate state pension

13th November 2015


Low paid part-time workers need to be helped to build up entitlement to the flat-rate state pension, the pensions minister has said.


Pension minister Ros Altmann has called on her colleagues at the Department for Work and Pensions (DWP) to help those who are not building up enough national insurance contributions (NICs) to benefit from the flat rate pension, which is coming in next year.


It is expected to be worth around £150 per week for those who have contributed 35 years of NICs – you need to have worked for at least 10 years to qualify for any state pension. However, it is estimated that around one in three retirees will not get the full rate because they have not paid enough in to the system.


A qualifying year is given to those earning above the lower earnings limit of £109 a week, or £5,772 a year.


However, 40,000 people (30,000 women and 10,000 men) were not accruing state pension because none of their jobs pay them a wage over the lower earning limit even if they earn over the limit through a combination of multiple jobs.


A DWP spokeswoman said: ‘The pensions minister has commissioned work to consider potential measures to help people with low-earning multiple jobs to build up a NICs record.’



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