§ Mr. Aspinwallasked the Secretary of State for Social Services whether he has any statement to make about the lapsing of the right of a married woman, and certain widows, to pay national insurance contributions at the reduced rate of 2 per cent. of earnings where such a woman has not worked for two consecutive income tax years.
§ Mrs. ChalkerHon. Members will know that the right of married women, and some widows, to pay contributions at a reduced rate is being phased out under the Social Security Pensions Act 1975. The only women with an existing right to reduced liability are those who were already married or were widow pensioners on 6 April 1977 and had preserved this right at 5 April 1978. As part of the phasing out process, regulations provide that the right to reduced liability shall be terminated automatically where a woman has neither been liable to pay a contribution as an employed earner nor at any time been self-employed during a period of two consecutive income tax years which begin on or after 5 April 1978. The effect will be that from 6 April 1980 a woman taking up employment or self-employment after such a 791W gap will be liable to pay contributions at the standard rate and these will count for benefit purposes. Restrictions applying to a woman with reduced liability will no longer apply once the right has lapsed. Home responsibilities protection, under which, subject to certain conditions, pension rights are safeguarded, will become available to the woman; she will be eligible for contribution credits for periods of proved incapacity and unemployment; and she will no longer be barred from paying voluntary Class 3 contributions. This will ensure that in future years more women will be able to build up an entitlement to a pension in their own right.