(10 years, 11 months ago)
Commons ChamberMy hon. Friend is quite right. Every change that we have made to the administration of automatic enrolment has been designed to reduce the burden on firms. For example, we have raised the wage threshold at which people are automatically enrolled, and we have delayed the staging for the smallest firms so that no one who employs fewer than 50 people will have to stage before April 2015.
11. What transitional arrangements his Department will make in respect of the ending of basic state pension inheritance.
The ability to access or increase a state pension based on the national insurance record of a partner or former partner was introduced in the 1940s, but less than 5% of people reaching pension age after the single tier is introduced will be affected by the removal of this facility. We are putting in place transitional arrangements for certain women who paid the married woman’s stamp, but to go beyond that and make transitional arrangements for a broader group would severely damage the simplicity of the scheme.
Yes, I can. Women who paid the married woman’s stamp at any point in the 35 years before the scheme comes in will get the pension that they expected—namely, the 60% for married women and the 100% widow’s pension.
T7. Will the Minister confirm that under the new system, 80% of individuals will be entitled to a full single-tier pension in their own right by 2030?
I am encouraged by the close interest my hon. Friend is taking in the single-tier pension, and I feel he is a kindred spirit. He is right that, as the 35-year qualifying rule includes not just earned contributions but credits for caring and so on, the vast majority of people will qualify for the full single-tier pension.