Pension shake-up will benefit stay-at-home mums

Mums who take a break from work to raise children will now qualify for full basic pensions

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 A shake-up in the state pension system is good news for stay-at-home mums, who will now qualify for a full pension, even if they take time out from work to raise their children.

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At the moment, only 30% of women retire with the right to use the full basic state pension, compared to 85% of men.

This is because many take time out from employment to be with their children at home. It means they don’t make the required national insurance contributions currently needed to qualify for a full pension.

The new citizens’ pension, which the Government is planning to introduce will not be based on contributions. This means mums who give up work to be at home with their children will receive a full state full pension of £140 a week, regardless of how much, or how little, they have paid into the system.

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The proposal will be detailed by the end of the year in a new green paper released by the coalition Government.

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