Baroness Altmann – 2016 Parliamentary Question to the Department for Work and Pensions

The below Parliamentary question was asked by Baroness Altmann on 2016-10-10.

To ask Her Majesty’s Government what plans they have to ensure that individuals who are currently working in multiple low paid jobs without receiving national insurance credits will not lose out on their future state pension relative to people who are not working and still being credited for National Insurance contributions.

Lord Freud

The population working in multiple low paid jobs is not static and there is little evidence that people are engaged in this type of work pattern for significant periods in their working life, or that their state pension outcomes are affected, so many of those affected are likely to build up sufficient qualifying years in the future through paid or credited contributions. There is also a very wide gateway to National Insurance cover already: the lower earnings limit, the threshold for access to contributory benefits (including the State Pension) is set at the equivalent of less than 16 hours per week at the national living wage; there is a comprehensive system for National Insurance credits; people can pay voluntary contributions to protect their State Pension position, and finally, new State Pension allows for substantial gaps in National Insurance cover – up to 15 years over a 50 year working life – without penalty.