§ Earl Russellasked Her Majesty's Government:
How many people of pensionable age do not receive a full state pension because of inadequate contribution records, what proportion of those affected are women, and what would be the total net cost to public funds of paying a full state pension to everyone of the relevant age.
§ Baroness Hollis of HeighamThe Government are committed to reviewing all the main areas of insecurity affecting pensioners. The key objectives of the review will be that pensioners should have an adequate income in retirement, that they should share fairly in rising national prosperity, and that public finances should be both sustainable and affordable.
It is estimated that the number of people who do not receive a full category A basic state pension is 3.5 million; 91 per cent. of whom are women. Of these around 2 million women receive pensions based wholly or partly on their husband's contributions. Many of these are likely to have elected to pay contributions at a reduced rate that did not earn them entitlement to their own pension.
The net cost of paying the full category A basic state pension to all people over State Pension age regardless of their contribution record is estimated to be £4.2 billion.
Notes:
1. Estimates of numbers and the gross cost are provided by the Government Actuary's Department.
2. The cost is in 1997–98 prices and rounded to the nearest £ 1 billion.