Five questions answered on new flat rate pension proposal

Who will benefit, and who will miss out?

The government plans simplify the pension’s system in what will be its biggest overhaul in decades. We answer five questions on the proposed changes.

What new flat rate are the government proposing?

Pensioners after the 6th of April 2017, when the new changes will likely to come into effect, will be paid a flat rate of £144, plus inflation rises between now and 2017. This effectively merges the state basic pension and the state second pension.

The current state pension is £107.45 a week. However, this can be increased up to £142.70 by applying for a pension credit and the state second pension.

Why has the government decided to make these changes now?

The coalition government believes the current system is too complicated and they say they want to simplify the system so people know what they will be paid when they reach pension age.

They government also believe that the one-and-a-half million pensioners who currently don’t claim pension credit they are entitled to will be paid what they are owed under this new system. 

Who sets to benefit the most from these changes?

Those who are self employed are set to benefit as they tend to get a lower state pension as they tend not to qualify for the state second pension. Women are also set to be better off.

As Chris Curry, from the charity the Pensions Policy Institute, explains to the BBC:

"So people who don't make enough contributions throughout their working life to, in particular, the state second pension, which includes people with intermittent work patterns, periods of low earnings and the self-employed," he said.

"So a lot of women will do better from this particular policy, as will people who are spending long periods of their career in self-employment."

Who might miss out on a full pension under the new system?

It is believed the government will announce that anyone who hasn’t paid National Insurance for at least 10 years will not get a pension. Also, those who have paid National Insurance for less than 35 years will have their pension reduced; a change from the 30-year threshold introduced a few years ago.

Also, the state pension age is rising to 66 for both men and women by 2020, with further plans for this to increase to 67 between 2026 and 2028.

What has the pension’s minister Steve Webb said about the proposed changes?

Webb told the BBC: "At the moment, nobody has a clue what the state is going to pay them," he told the BBC.

"We have a basic pension, a second state pension, a pension credit - it's fiendishly complicated. So we are proposing a simple system, not a more expensive one... that will help people plan for their retirements.

"Now, men and women will build up pensions in their own right. And women coming up to pension age who have got a damaged pension record, because they brought up children, will have that restored." 

"At the moment, nobody has a clue what the state is going to pay them" Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

Photo: Getty
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Which CLPs are nominating who in the 2016 Labour leadership contest?

Who is getting the most CLP nominations in the race to be Labour leader?

Jeremy Corbyn, the sitting Labour leader, has been challenged by Owen Smith, the MP for Pontypridd. Now that both are on the ballot, constituency Labour parties (CLPs) can give supporting nominations. Although they have no direct consequence on the race, they provide an early indication of how the candidates are doing in the country at large. While CLP meetings are suspended for the duration of the contest, they can meet to plan campaign sessions, prepare for by-elections, and to issue supporting nominations. 

Scottish local parties are organised around Holyrood constituencies, not Westminster constituencies. Some Westminster parties are amalgamated - where they have nominated as a bloc, we have counted them as their separate constituencies, with the exception of Northern Ireland, where Labour does not stand candidates. To avoid confusion, constitutencies with dual language names are listed in square [] brackets. If the constituency party nominated in last year's leadership race, that preference is indicated in italics.  In addition, we have listed the endorsements of trade unions and other affliates alongside the candidates' names.

Jeremy Corbyn (46)

Bournemouth East (did not nominate in 2015)

Bournemouth West (nominated Jeremy Corbyn in 2015)

Brent Central (nominated Jeremy Corbn in 2015)

Bristol East (nominated Andy Burnham in 2015)

Cheltenham (did not nominate in 2015)

Chesterfield (did not nominate in 2015)

Chippenham (nominated Yvette Cooper in 2015)

Colchester (nominated Yvette Cooper in 2015)

Crewe and Nantwich (nominated Jeremy Corbyn in 2015)

Croydon Central (nominated Jeremy Corbyn in 2015)

Clwyd West (did not nominate in 2015)

Devizes (nominated Jeremy Corbyn in 2015)

East Devon (nominated Jeremy Corbyn in 2015)

East Surrey (nominated Andy Burnham in 2015)

Erith and Thamesmead (nominated Jeremy Corbyn in 2015)

Folkestone & Hythe (nominated Andy Burnham in 2015)

Grantham and Stamford (nominated Jeremy Corbyn in 2015)

Hampstead and Kilburn (nominated Yvette Cooper in 2015)

Harrow East (nominated Jeremy Corbyn in 2015)

Hastings & Rye (did not nominate in 2015)

Herefore and South Herefordshire (did not nominate in 2015)

Kensington & Chelsea (nominated Jeremy Corbyn in 2015)

Lancaster & Fleetwood (nominated Andy Burnham in 2015)

Liverpool West Derby (nominated Andy Burnham in 2015)

Leeds North West (nominated Jeremy Corbyn in 2015)

Morecambe and Lunesdale (nominated Andy Burnham in 2015)

Milton Keynes North (did not nominate in 2015)

Milton Keynes South (did not nominate in 2015)

Old Bexley and Sidcup (nominated Yvette Cooper in 2015)

Newton Abbott (nominated Liz Kendall in 2015)

Newark (did not nominate in 2015)

North Somerset (nominated Jeremy Corbyn in 2015)

Pudsey (nominated Andy Bunrnham in 2015)

Reading West (did not nominate in 2015)

Reigate (nominated Yvette Cooper in 2015)

Romford (nominated Andy Burnham in 2015)

Salisbury (did not nominate in 2015)

Southampton Test (nominated Jeremy Corbyn in 2015)

South Cambridgeshire  (did not nominate in 2015)

South Thanet (did not nominate in 2015)

South West Bedfordshire (did not nominate in 2015)

Sutton & Cheam (nominated Jeremy Corbyn in 2015)

Sutton Coldfield (did not nominate in 2015)

Swansea West (nominated Jeremy Corbyn in 2015)

Tewkesbury (nominated Jeremy Corbyn in 2015)

Westmoreland and Lunesdale (nominated Jeremy Corbyn in 2015)

Wokingham (nominated Jeremy Corbyn in 2015)

Owen Smith (12)

Altrincham and Sale West (nominated Yvette Cooper in 2015)

Battersea (nominated Yvette Cooper in 2015)

Blaneau Gwent (nominated Jeremy Corbyn in 2015)

Bow and Bethnal Green (nominated Jeremy Corbyn in 2015)

Reading East (did not nominate in 2015)

Richmond Park (nominated Jeremy Corbyn in 2015)

Runnymede and Weybridge (nominated Yvette Cooper in 2015)

Streatham (nominated Liz Kendall in 2015)

Vauxhall (nominated Liz Kendall in 2015)

West Ham (nominated Jeremy Corbyn in 2015)

Westminster North (nominated Yvette Coooper in 2015)

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