Sunday, 30 November 2008

Hundred million pound boost for pensioners

I received confirmation this week that a long-running campaign to get women the pension that they are entitled to is likely to yield over £100 million in enhanced pensions, as the Telegraph report here. The back story is that I was contacted by the Times newspaper about 18 months ago about cases of women who had spent time at home with children which should have been reflected in their pension rights but for which they had received no credit. I did some very rough estimates at the time which suggested we could be talking anything up to half a million women missing out. The pensions minister at the time (now Secretary of State James Purnell) went on the radio saying I was talking nonsense and that there was nothing more than the odd case.

I persisted, and worked with the subsequent pensions minister Mike O'Brien to convince the Department that this was more than a few isolated cases. HM Revenue and Customs in due course agreed to trawl their records to see what they could find, and a written answer to me this week said that they reckon between 100,000 and 150,000 women may be missing out. In my experience the amount they miss out on is well in excess of an average of £1,000 of backdated pension (often much more). Doing the maths suggests that this exercise could easily produce backdated payments of £100 - £150 million for the women concerned.

If only I'd remembered to ask for one per cent commission.....

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