In July 2007 The Pensions Act legislated for reforms to the Basic State Pension and the State Second Pension. Over the coming years, the Act will make the state system more generous, fairer to women and carers, and more widely available.
Basic State Pension (BSP) -
- The number of qualifying years needed to receive a full BSP will be reduced from 39 for women and 44 for men to 30 years for both.
- Annual cost of living increases in BSP will be linked with earnings rather than prices.
- Contribution conditions for BSP will be changed so that it is easier for everyone to build up some entitlement.
- Home Responsibilities Protection (HRP) will be replaced with a new system of weekly credits for those caring for children up to the age of 12 and for those who spend at least 20 hours a week caring for severely disabled people.
State Second Pension (S2P) - From 2010 national insurance credits for those with long-term disabilities and people with caring responsibilities will be introduced so that people can build up some additional pension entitlement.
State Pension Age - The state pension age is being gradually increased, between 2024 and 2046, to 68 for both men and women to reflect increasing longevity in society and to make the state pension affordable in the long term.