Local MP Lynne Featherstone has welcomed the news that 15,863 self employed people in Hornsey and Wood Green will benefit from pensions reforms being debated by MPs this week, which will bring in a simpler, fairer state pension for future pensioners.
In the past, self employed people missed out on a higher state pension because they could not qualify for the second state pension, despite having paid National Insurance contributions all their lives. This left them in reliance on a basic state pension of just £107 a week.
Under the new system, introduced by Liberal Democrat Pensions Minister Steve Webb MP, anyone who has 35 years of working or caring will qualify for a decent, flat rate pension of £144 a week.
The reforms will also mean 750,000 women will get an average £9 a week extra within the first ten years of its introduction. The reforms will value unpaid caring work just as much as a high-flying city job.
Commenting, Lynne Featherstone MP said:
“I am delighted that these pension reforms, coming from a Liberal Democrat minister, will create a simpler and fairer state pension. For too long, hard-working self employed people and carers have been getting a raw deal, despite the incredibly valuable contribution they make to our economy.
“Now, the 15,863 self employed people in our area will be properly rewarded for their contributions and will not lose out later in life.
“This is especially good news as it comes alongside the Coalition’s triple lock, which has given pensioners the biggest cash increase ever in the state pension.
“I am proud to see the Liberal Democrats in Government restoring fairness and simplicity to our state pension system.”