LOW-PAID women are expected to be the main beneficiaries of Government reforms that will result in 80,000 low income households in Scotland qualifying for a state pension from 2016.
About 800,000 households UK-wide will become eligible for the first time after losing out previously because they may have held several poorly-paid jobs.
This would have left incomes below the current National Insurance (NI) threshold – or Lower Earnings Limit – of £5668 a year.
The UK Government reforms has moved to end the loophole which prevents them claiming a flat-rate state pension unless they pay NI contributions themsevles or qualify for credits towards the scheme. It is part of the UK Government's proposed Universal Credit and state pension reforms.
Pensions Minister Steve Webb said: "Our reforms will usher in a simpler and fairer state pension and, with Universal Credit, people with multiple, low-paid jobs will also for the first time be able to access the state pension.
"Hundreds of thousands of people will benefit, particularly women who hold down a number of part-time, low-paid jobs, but have previously been prevented from building up a state pension," he added.
Under the new single tier pension, to be introduced in 2016, women will receive a state pension in their own right, and because of Universal Credit, those on the lowest incomes will no longer miss out. The DWP noted how the Commons Work and Pensions Committee supported the reforms.
They will also help current claimants of Housing Benefit or Child Tax Credit. Households earning below the LEL with a child over 12 years old will now receive NI credits under Universal Credit.
Equally, Income Support claimants, who are either not currently entitled to credits from other benefits or have to apply to HMRC to get credits, will also receive an automatic NI credit towards the state pension.
From 2016, the current complex state pension system will be replaced by a simpler, flat-rate single-tier pension, for new pensioners. The new pension will be set above the basic level of means-tested support of £145.40 and will be based on an individual's NI contributions, with 35 years required to get a full pension.
Universal Credit will replace income-based Jobseeker's Allowance, income-related Employment and Support Allowance, Income Support, Working Tax Credit, Child Tax Credit and Housing Benefit, when it is gradually rolled out from later this year.
The Government says some 3.1m households will be better off under it by an average of £168 per month.
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