Pensions: Maternity Allowance

Baroness Thomas of Winchester
asked Her Majesty's Government:

Why women who received maternity allowance in April 1979 have not had the year 1979-80 qualifying towards their final state pension; and [HL3209]

For which years women who received maternity allowance over the month of April will have shortfalls in their state pension; and [HL3210]

Why women who received maternity allowance over the month of April and have discovered shortfalls in their state pension have not been allowed to top up their national insurance contributions to gain a full state pension. [HL3211]

The Parliamentary Under-Secretary of State, Department for Work and Pensions (Lord McKenzie of Luton)
National insurance contributions are credited to women for each week of their maternity allowance period for which they receive maternity allowance. In 1979, the maternity allowance period covered a maximum period of 18 weeks.

Whether women who were paid maternity allowance gained a qualifying year in 1979-80 or any other year would depend on their employment and on their level of earnings before and after the maternity allowance period—which may straddle two tax years.

Women who did not return to work or took low-paid work were eligible for home responsibilities protection for each complete tax year from 1978-79 where they received child benefit throughout the tax year for a child under 16 provided they did not have a reduced rate election in force. Home responsibilities protection works by reducing the number of qualifying years a person needs to get a basic state pension. However, it cannot presently reduce the number of qualifying years needed to get a full basic state pension below 20. Where a woman reaches state pension age on or after 6 April 2010, any years of home responsibilities protection she has acquired will be converted to qualifying years, when home responsibilities protection is replaced by a weekly credit.

Women may top up their national insurance record by paying class 3 voluntary contributions in order to gain a full basic state pension provided they meet the qualifying conditions for doing so. These contributions have to be paid within certain time limits. Currently, the time limit for paying is generally six years. However, for tax years before 1982-83, these contributions needed to be paid before the end of the second year following the deficient year. Class 3 contributions cannot be paid for any years for which a reduced rate election was in force.