Stay at home mums lose state pension

[AB Asks]

Over eight million women who stayed home to raise their children have lost the chance to receive a full state pension. Ministers changed their minds over plans to give women a chance to make up the shortfall before they retire. It slipped out yesterday. Women could have added in extra cash to make up the time they had off but this is no longer the case. It is a massive shock to those women who have took time out to raise their children. What do you think? How is this fair on women who chose to raise their children rather than a nursery?

[Pufflette]

Aren't we like the rest of Europe facing a shrinking population because we have a plummeting birthrate? Shouldn't then the government do the responsible thing and be encouraging and supporting mothers who so graciously wanted to stay at home and lovingly raise their kids?

[kwicky]

Here we go again! They can always rely on means tested state benefits the politicians say. How can the MPs justify themselves an inflation proofed pension when the are booted out at election time after having served only a few years. It doesn't tie up.

[buildersmate]

Really, AB this question is nonsense and if you don't know enough about the way the pension system works than you shouldn't wind people up by posing non-questions.
Fact: - women who bring up children get NI 'credits' for the years whilst a child is under 16. These years 'count' towards the minimum number of years required for a full basic state pension. It therefore has no impact "to those women who have took time out to raise their children".

[Pippa68]

Anyone find a link?

[scoobydooby]

I don't understand this too much but, if buildersmate is correct, why was I offered the opportunity to pay in my missed contributions when I took time off to raise my children more than 10 years ago? And, furthermore, if it made no difference to my pension, why would I even want to make up the shortfall?

[kwicky]

This is a link in todays press

http://news.bbc.co.uk/1/hi/business/7153401.st m

[Hotlardlife]

The great 'sweaty' McBottle has spent all the cash on an army of penpushers and imigrants businesses.

Hey come to the UK. Its great unless you were born here

[buildersmate]

Yes, and a fairly unimpressible bit of journalism that is, too. A critical part is in the last two lines if you read thjat far: -
"The government is already making sweeping cuts in 2010 to the level of NI contributions needed for a full state pension. From then on, both men and women will need to have paid contributions for just 30 years."
Even this is 'sold' as a sweeping cut - it's not - its a benefit to everyone retiring after 2010. Fewer full years of contributions are required by both men and women to entitle to a full Basic State Pension.
And its still true that anyone who was in receipt of Child Benefit for a child under 16 (there are some other reasons in addition) gets a 'credit' for each full year. So many women returning to work have been encouraged to pay extra NI contributions when they'd have got a full Basic State Pension anyway (depending on their work plans). And if they didn't get that, but were badly off then Pension Credits would kick in.
This is non-story.

Tell you what - time to spin it around the way. Headline for tomorrow "NI Contributions Agency stands accused of inviting women to make unneccessary additional contributions".

[THECORBYLOON]

Tell us AB Asks, what do you know about Home Responsibilities Protection (HRP?) How many years' Voluntary Contributions can folk pay at the moment?

[carolegif]

I get a reduced pension because I stayed at home, then when the children went to school I worked part-time for �1 and hour 20 hours a week in term time. Because of this the DHSS as it was then, advised me to pay reduced stamp as I would be paying one third of my earnings in contributions.
Now they say I don't have enough to get a full pension and because I worked part time I don't even qualify for the stay at home credits. If I had left my children to become "latch key" children which made you a pariah, then you lose out.

carolegif

[bednobs]

shouldn't that be "taken time out" ed?

[carolegif]

Should have been if I had left my children I wouldn't be penalised!

I have appealed, but to no avail, they have withdrawn this because they have realised that it is going to cost a lot of money (not as much as Northern Rock though) due to the millions of us in this position.

carolegif

[buildersmate]

Now that is a newsworthy story, Carole.
It has always been the case that "you cannot get HRP for any year you are entitled to pay reduced NI contributions for married women and widows, while you are working" (this is a quote from the Pensions Service website - which of course didn't exist at the time when this happened to you).
It's off-topic - and not the non-story ABAsk came up with, but it is sad that this happened and women didn't realise the implication on pension. Made it hardly worth working.

[horselady]

I'm in exactly the same situation as carolegif.