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Pensions: Autocredits

Volume 684: debated on Thursday 20 July 2006

asked Her Majesty's Government:

What additional savings, both gross and net, would come from abolishing autocredits by 2010, if men and women were to continue to be eligible for the five years before state pension age.[HL6730]

Women are not eligible for autocredits. The additional savings against our proposal to phase out autocredits for men in line with the increase in state pension age for women are estimated to be negligible.

Our proposal to phase out autocredits between 2010 and 2020 is designed to align the availability of autocredits with the availability of pension credit under the current regime.

The retention of autocredits is inappropriate in a society where someone aged 60 can now expect to live, on average, for another 25 years or more. As the state pension age for women rises in 2010, we will increasingly treat men and women aged 60-64 as active labour-market participants. The proposal to reduce the number of qualifying years required to achieve a full basic state pension to 30 will, in any event, mean that few could benefit from the continued availability of autocredits.