The UK Government has announced that a new, simpler, flat-rate pension will be introduced from April 2017. Women are being held up as one of the main beneficiaries by the government but it is far from clear whether this is actually the case.

Currently, the basic state pension in £107.45 per week but this can be topped up to £142.70 with means-tested pension credit and state second pension (which is based on national insurance contributions). The new changes will see people have to work for 35 years (five years longer than at present) to get the equivalent of £144.

Figures suggest that at least half of all people reaching state pension age before 2050 are likely to be better off, the majority of these people by at least £2 per week. However, by 2060, more than half of those reaching state pension age would be worse off than in the current system. The government's plans would add £9 a week for 750,000 women, with increases expected to be introduced from 2017.

The changes mean that people will have to work for longer to qualify for a full state pension in that they will have to build up 35 years’ national insurance contributions rather than the current 30 years’ contributions. Currently, people begin to build up their contributions after working for one year. Under the new plans, this will increase to 10 years. Those who have less than 10 years’ contributions will not be entitled to a state pension. The pension credit system will continue but only to provide those ineligible for the new pension with a safety net. The second state pension will be abolished although contributions already made will be honoured.

Currently, women who take time off to look after children often do not build up enough national insurance contributions to qualify for a state pension. Under the new system, anyone who works, has been claiming benefits for being unemployed, has been looking after children aged 12 or under, or caring for sick or disabled adults for 35 years will receive a fixed pension of £144 a week when they reach state pension age.

The Institute for Fiscal Studies (IFS) has published an assessment of the plans which concludes that ‘the main effect in the long run will be to reduce pensions for the vast majority of people, while increasing rights for some particular groups (most notably the self-employed)’. The IFS highlights that many more people would be worse off because ministers plan to cut the amount individuals can accrue every year which means that in the long run, the reform will not increase pension accrual for part-time workers, the majority of whom are women, and women who take time out to care for children.

The government’s plans have also been criticised because women born between April 6 1952 and July 6 1953 will stay on £107 per week while men of the same age will get the higher payment of £144. This will affect 39,000 women in Scotland, and 430,000 women across the UK. These women have already lost out in the equalisation of the pension age changes.

There will also be changes to the six million workers who are in final salary pension schemes, five of whom work in the public sector. Two-thirds of public sector workers are women. The abolition of the separate state second pension, and its incorporation into the new flat-rate pension, will end the system of "contracting out", whereby members pay reduced national insurance contributions but pay no state second pension. From 2017, workers in those schemes will have to pay more national insurance, amounting to a further 1.4% of the relevant earnings on which national insurance is levied. To reflect their lower previous NI contributions, they will only be eligible to receive a reduced version of the single-tier pension when they eventually retire.

The real root of women’s inequality in retirement

Research reveals the majority of women can't afford to save for retirement

Government U-turn on women's pension age but millions still to lose out

Government pushes ahead with plans to raise state pension age for women

Tags: UK Pensions
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Close the Gap newsround (26)

Posted on January 16, 2013

This edition captures articles on childcare, occupational segregation, and issues related to the gender pay gap and its causes.

NEWS - General

The Herald

No easy answers in the struggle for equal pay

Europe's costliest childcare

Better gender balance in classroom will benefit all

The Guardian

How do you fit six toddlers into a buggy? Ask Liz Truss

Facebook's Sheryl Sandberg attacks gender stereotypes at work

Women fare better in independent films than in Hollywood, study finds

Davos 2013: why are only 17% of delegates women?

Ursula Brennan: 'relentless focus' needed to maintain gender diversity

Broadcasting's gender imbalance is inexcusable after Expert Women's Day

Women are the losers in child benefit cuts, says Labour

UK's top firms more male-dominated than FTSE rivals, new data reveals

Daily Record

Workers win £2m equal wage battle against South Ayrshire Council

New Statesman

Britain's own war on women

TUC

Government policy has made childcare even more unaffordable, says TUC

Touchstone

The Childcare Conundrum

BBC News

NHS Scotland 'facing equal pay timebomb'

Birmingham City Council £200m short to pay equal pay bill

4 News

Childcare Q&A: FactChecking early years reform

NEWS - Science, Technology, Engineering and Mathematics

The Guardian

Sexual discrimination in science: why we must act now

Few women at top in engineering, science and tech firms, MPs told

Engineering: not for girls?

The Scotsman

Technical fault: The worrying brain drain of women from science and technology

EVENTS

Scottish Women’s Convention - International Women’s Day 2013

The SWC International Women’s Day event will be held on Saturday 9^th March 2013 in the Scottish Parliament with permission of the Scottish Parliament Corporate Body.

The event will begin around 12.30pm to allow for registration and lunch.

We will take our seats within the Debating Chamber at 2.00 pm where we will be joined by a number of invited speakers.

An opportunity for networking will be available from 4.00pm – 6.00pm

If you wish to register your interest in attending this free event please do so either by emailing: info@scottishwomensconvention.org or telephoning 0141 339 4797

Engender

21st February 6-8 pm Get involved in UN Women Scotland!

All women are welcome!
If you would like to be involved in the second meeting of UN Women Scotland and help create a structure for the group join us at:

Glasgow Caledonian University
Room W828, 8th floor of the Hamish Wood Building

Please RSVP to info@engender.org.uk or call 0131 558 9596

4 - 24 March - Dundee Women’s Festival 2013

CELEBRATING WOMEN WITH EVENTS, FILM, ARTS, DRAMA & WORKSHOPS

For more information and a programme of events please contact:

Dundee Voluntary ActionNumber Ten 10, Constitution Road, Dundee, DD1 1LL

Tel: 01382 305731 | Fax: 01382 305729 | Email: dva@number10.org www.d-v-a.org.uk

Tags: UK Scotland Occupational segregation News Events
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Close the Gap newsround (25)

Posted on November 7, 2012

This edition captures articles on equal pay claims, occupational segregation and issues related to the gender pay gap and its causes.

NEWS - General

The Scotsman

Edinburgh City Council agree settlement on equal pay dispute

Hannah McGill: Creative gender gap makes artists close ranks

STUC Women's Conference 2012: women and their priorities at work

Gender quotas plan postponed

The Guardian
High court rules: equal pay places local government at risk of claims

Women's economic empowerment offers a win-win scenario

Women who worked for Birmingham council win equal pay court fight

Soaring cost of childcare 'stops parents seeking work'

Boardroom pay survey shows persistent and large gender gap

Pension savings gender gap widens

Pay discrimination: the equality trap

Mind the gender gap

The Independent

Britain's women bosses face lifetime pay gap of £423,000

Cambridge News
Equal pay ruling 'may impact City'

BBC News
Birmingham City Council liable for £757m equal pay claims

Women's Enterprise Scotland
European Committee Opinion On Women Entrepreneurs

Fawcett Society
Fawcett warns of a 'backwards step' on equal pay

Recruiter
Gender balance reporting for listed firms broadens diversity debate

Reuters UK
EU delays vote on quotas for women in the boardroom

Management Today
The pay gap is still a heavily ingrained philosophy

Personnel Today
Top 10 private- and public-sector employers for gender and ethnicity

NEWS - Science, Technology, Engineering and Mathematics

The Guardian
Forgotten women of science win recognition online

Scotland on Sunday
Engineering giant training top managers to avoid gender discrimination

EVENTS

One Workplace, Equal Rights

Bargaining for equality seminar, Friday 30 November 2012, STUC, Woodlands Rd, Glasgow

This seminar is for trade union representatives on equalities in the workplace. It will provide information on reps can promote and support equalities practice in the workplace. To register and find out more contact the One Workplace Development Manager, Zaffir Hakim at the STUC zhakim@stuc.org.uk or 0141 337 8122

Tags: UK Scotland Occupational segregation News Events
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