Pensions changes announced by government

Changes to the upcoming Pensions Act will see more people claim the full state pension, the government said today.

Work and pensions secretary James Purnell announced that people retiring between now and 2015 would have the opportunity to make up shortfalls in National Insurance contributions through one-off payments.

In turn, this could allow 500,000 more people to claim the full state pension.

Women will be disproportionately affected by the changes, as many have taken years off work – and therefore did not contribute to National Insurance – in order to raise children.

Just one woman in three currently qualifies for the full basic pension when she retires, the Press Association reports.

Mr Purnell said: "The Pensions Act will transform pension provision and finally bring equality for women and carers so that by 2010 around 75 per cent of women reaching state pension age will be entitled to a full basic state pension, rising to 90 per cent by 2025 compared to around 35 per cent today."