Pendle MP, Gordon Prentice, has welcomed news that women and carers are in line for a boost to their state pension. In an amendment to the Pensions Bill, likely to be debated in the House of Lords tomorrow, people without a full contributions record will be able to buy up to six “additional years” at a big discount.

It applies to men and women alike but is much more likely to benefit women who often have a broken contributions record as they take time out from work to look after others.

Speaking from Westminster, the MP said: “Women in particular have been crying our for this change for years and I welcome the Government’s move. At the moment 90% of men but only 35% of women qualify for the full state pension and that is just not right.”

“The number of qualifying years for a full State pension is also being cut from 44 (for a man) and 39 (for a woman) to 30 for both men and women from April 2010.”

People will be able to buy up to six years of National Insurance contributions at £400 per year. For £2,400 they will be able to increase their pension by £960 per year.

The proposed change was described by pensions analysts in the Financial Times last Saturday as “an incredibly good deal”.

Note to Editors: The Government announced that it intended to make such a change by way of an amendment to the Pensions Bill 2007-08. A Department of Work and Pensions Press release of 24 October said:

The government will today propose an amendment to the Pensions Bill to allow people to buy up to an additional six years of voluntary National Insurance contributions, over and above those permitted under the current time limits, in order to enjoy a higher state pension.

The measures are the latest part of a programme of reform that will see the state pension system offer a fairer deal to women and carers. They will benefit thousands of women who traditionally have incomplete National Insurance records and therefore often receive a low state pension.  The proposals will apply to those who reach State Pension age between 6 April 2008 and 5 April 2015 and who already have 20 qualifying years on their National Insurance record, taking account of Home Responsibilities Protection.

Ends