More low-paid will get state pension

Workers with multiple low-paid jobs who earn below the National Insurance (NI) threshold will now qualify — along with their partners — for credits towards the new State Pension as part of the government’s Universal Credit and State Pension reforms.

Those with a job earning less than the Lower Earnings Limit (LEL) of £5,668, and who may have other similarly low-paid jobs, are currently excluded from the basic State Pension. They are not liable to pay NI contributions and unless they qualify for NI credits for another reason or make them themselves, miss out on a State Pension.

This is now set to change, with 800,000 households expected to benefit when Universal Credit is fully rolled out. Low-paid women in particular stand to gain credits towards the flat-rate State Pension in the reforms.

Pensions minister Steve Webb said: “Hundreds of thousands of people will benefit, particularly women who hold down a number of part-time, low-paid jobs, but have previously been prevented from building up a State Pension.”

Under the new single-tier pension, to be introduced in 2016, women will receive a State Pension in their own right, and because of Universal Credit, those on the lowest incomes will no longer miss out. The Work and Pensions select committee has voiced its support for the changes.

https://www.gov.uk/government/news/nearly-a-million-extra-low-income-households-to-qualify-for-state-pension