UK Parliament / Open data

Pensions Bill

Proceeding contribution from Baroness Hollis of Heigham (Labour) in the House of Lords on Wednesday, 18 December 2013. It occurred during Debate on bills and Committee proceeding on Pensions Bill.

My Lords, this is a very simple and brief amendment about service wives. Service wives without children who accompany their husbands abroad have in the past relied on receiving the 60% married women’s pension as a default. Obviously the option for NI contributions through work does not easily apply if you are abroad, and voluntary NICs become expensive if you are there for a long period.

The married women’s dependency pension is going to disappear. The previous Government recognised the particular difficulties of service wives when in 2010 they introduced credits for spouses or partners accompanying service personnel abroad, so the principle is rightly established. Since then, there has been easement for JSA and ESA entitlement.

However, if you are in your late 30s you may have a decade behind you with no NI cover until the 2010 provisions kicked in. This amendment simply allows backdated credits for, frankly, an arbitrary 10 years which, if he is on a 22-year contract, should allow her sufficient cover, and later sufficient time to make up the rest of her contributory years. I do not know the numbers, and I do not know the cost. I hope the Minister will help me out. There may be a better way to do it—for example, as with the reduced married women’s stamp election, which is being turned into a 60% dependency pension, which retains the service wife’s eligibility for a 60% dependency pension, although the problem there will be split years.

I believe that the Government may have found a way to address the problem—this was a hint I received from the Minister in the other place. I hope so. If it is true, it would be great to know about it; and if it is not, this amendment, or something similar offered by the Government, might do the job. We owe it under

the service covenant to support wives who do the right thing, perhaps, by accompanying their husbands abroad and then pay the price by lacking a pension when they retire. I beg to move.

About this proceeding contribution

Reference

750 cc305-6GC 

Session

2013-14

Chamber / Committee

House of Lords Grand Committee

Legislation

Pensions Bill 2013-14
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