The Pensions Bill 2013-14, which includes reforms to the state pension, received Royal Assent on 14 May.
The reforms, which were first announced in the 2012 Autumn Statement, aim to create a simple flat-rate pension, the full level of which will be set above the basic means test, currently at £148.35.
The government said that in the first 10 years following the reforms’ implementation in 2016, it expects around 650,000 women to benefit from the single-tier valuation of their pension, receiving on average £8 a week more in state pension.
Ten qualifying years of national insurance contributions will be required to receive any state pension under the reforms, and for people who start their national insurance record after the reforms are introduced, the full level of the new state pension will be based on 35 years of national insurance contributions.
The government has also introduced the triple-lock guarantee to ensure value of basic state pension will rise by highest of inflation, earnings or 2.5% for the duration of this Parliament.
The new state pension legislation is contained in the Pensions Act 2013-14, which also provides for other reforms to the state pension age, bereavement benefits and private pensions.
Steve Webb (pictured), pensions minister, said: “The new state pension will replace the current complex mix of basic and additional state pension, which successive governments have tinkered with so much over the decades.
“It will give people clarity and confidence about what income they will get from the state in their retirement.
“In addition, the state pension reforms will benefit those who have historically done poorly under the current two-tier system.
“I want to see us build a fairer society within a stronger economy. That means ensuring people have a simple, better state pension in retirement that protects them from poverty and provides a solid foundation for them to save for their future.”
Once again the frozen 4% are ignored. Steve Webb supported the ending of the frozen pension policy before the last election saying that this was an anomaly and was not how a contributory system worked. A state pension entitlement is dictated by ones contributions and to freeze annual cost of living increases to the few is discrimination. He has done nothing to end this injustice and has let down the UK’s most vulnerable seniors who are victimised just because of where they live. Shame on the UK government.
By silently giving her assent to the Pension Bill which contains a Clause confirming that no changes will be made regarding the discriminatory freezing of pensions, in direct opposition to the intentions H.M. expressed in the Commonwealth Charter, the Queen has acknowledged that she is merely a tool of a Government which has no respect whatsoever for her personal moral values.
“In addition the state pensions reforms will benefit those who historically done poorly under the current two tier system”,said the Minister for Pensions, Steve Webb.
Mr. Webb should have added “Except of course, the 4% of UK pensioners world wide that we shall continue to discriminate against by the non index linking of their hard earned pensions”
How can he claim to want to build a fairer society with better state pension in retirement that protects them from poverty when Clause 20 of the Bill is directly responsible for condemning over half a million of them to a downward spiral in their standard of living by freezing their pensions. Some who qualified for a full pension still getting the same paltry figure now as they got over twenty years ago…one centenarian still receives her full entitlement – of GBP 6.12p a week.
There is no justification for this policy which uprates pensions in the UK, in the EEA and some sixteen random other countries like Macedonia and USA but not, for example in Australia or Canada, South Africa or Thailand. These pensioners contributed to the NI scheme under the same terms in their workiig life,as everyone else but are denied the right to claim under the same terms as everyone else in retirement. – Webb showed in his pathetic defence in the Scrutiny Committee – that this was the case producing just excuses without substance.
I am afraid that all the frozen pensioner sees in that photograph with the article is not the smile of the benefactor but that of a turncoat, the turncoat who, when in opposition signed an Early Day Motion calling for the abolition of the discriminatory policy he now condones in Clause 20 of this Act.. .
It would seem that the government and Steve Webb in particular do not mind embarrssing her Majesty by the inclusion of clause 20 in the new Pensions Bill.
This clause prevents pensioners who decide to retire to certain countries around the world receiving any increases to their state pension.
This currently is done through a regulation but copied into the new Bill.
When all pensioners qualify by virtue of their contributions to the National Insurance Fund but on retiring 560,000 pensioners are not given the increases annually, that is discrimination and is surely not fit for a democratic country in the 21st century.
This anomaly must be corrected if justice is to be seen to be done.
I will be 65 in December 2016, Worked all my life and just received a pension forecast based on “current legislation” . I ahve 46 “qualified years” under the “current scheme”…which I wont get ….But, here si the crunch……I ahve been “Contracted Out” (through no fault of my own” for almost all my working life……What will I get??? Any ideas anyone?