UK State Pension - Pensions Act 2007

Pensions Act 2007

A new approach was introduced following the findings of the all-party Pensions Commission in 2006 and the white paper Security in retirement: towards a new pension system published in May 2006. The key provisions were:

1. Reduction of the qualifying years for a full basic State Pension from 44 years for men and 39 years for women to 30 years for both.
2. The basic State Pension is now increased every year by the greatest of:
   1. the growth in average earnings;
   2. the growth in prices;
   3. 2.5 per cent.
3. The contribution conditions for basic State Pension were changed so that it is easier for everyone to build up some entitlement.
4. Replacing Home Responsibility Protection (HRP) with a new system of weekly credits for parents and carers.
5. Raising the State Pension Age for both women and men from 65 to 68 in three stages between 2024 and 2046.
6. Introducing National Insurance credits for parents and carers so that they can build up some entitlement to the Additional State Pension.
7. End of the option to contract out of the Additional State Pension through money-purchase private pensions.

Some modifications to this were made in the Pensions Act 2008.