Tag: Baroness Altmann

The below Parliamentary question was asked by Baroness Altmann on 2016-09-13.

To ask Her Majesty’s Government how women who are in multiple part-time jobs, none of which pay more than the National Insurance lower earnings limit, are able to claim credit for their state pension.

Lord Freud

DWP analysis suggests that at any one time around 10,000 men and 40,000 women have multiple jobs below the lower earnings limit (LEL) with combined earnings above it, but are not receiving any qualifying years towards the State Pension on those earnings.

DWP analysis estimates that of the women with multiple jobs below the LEL but total earnings above it, around 30% are getting a childcare credit for their State Pension. Others in this group may also be receiving credits through another route or be paying voluntary national insurance contributions.

The below Parliamentary question was asked by Baroness Altmann on 2016-10-10.

To ask Her Majesty’s Government what plans they have to ensure that individuals who are currently working in multiple low paid jobs without receiving national insurance credits will not lose out on their future state pension relative to people who are not working and still being credited for National Insurance contributions.

Lord Freud

The population working in multiple low paid jobs is not static and there is little evidence that people are engaged in this type of work pattern for significant periods in their working life, or that their state pension outcomes are affected, so many of those affected are likely to build up sufficient qualifying years in the future through paid or credited contributions. There is also a very wide gateway to National Insurance cover already: the lower earnings limit, the threshold for access to contributory benefits (including the State Pension) is set at the equivalent of less than 16 hours per week at the national living wage; there is a comprehensive system for National Insurance credits; people can pay voluntary contributions to protect their State Pension position, and finally, new State Pension allows for substantial gaps in National Insurance cover – up to 15 years over a 50 year working life – without penalty.

The below Parliamentary question was asked by Baroness Altmann on 2016-09-12.

To ask Her Majesty’s Government what is the total value of tax relief not paid to low-paid workers in (1) 2014–15, (2) 2015–16, and (3) 2016–17 to date, as a result of those workers contributing to a net pay scheme from which they were unable to receive the tax relief to which they would be entitled in a relief-at-source scheme.

Lord O’Neill of Gatley

The Government does not collect data on the number of workers earning less than the personal allowance who are also members of pension schemes that operate a net pay system. The Government does not hold employee level data on employees enrolled in net pay pension schemes, as such schemes are not obliged to report pension contributions to HM Revenue and Customs. The Government does not therefore hold information on the value of tax reliefs paid out to employees in net pay schemes.

However, the Pensions Regulator provides guidance to employers on choosing a pension scheme for their staff in order to discharge their statutory obligations under automatic enrolment. This guidance covers the choice between net pay and relief at source schemes, and the implications of net pay schemes for employees who do not pay tax.

The below Parliamentary question was asked by Baroness Altmann on 2016-10-17.

To ask Her Majesty’s Government, further to the Written Answers by Lord Freud on 15 September (HL1460, HL1461 and HL1462), what assessment they have made of (1) the proportion of addresses held by the Department for Work and Pensions that are incorrect, and (2) the number of people who will not have received a letter informing them of the change in their state pension age.

Lord Freud

This information requested is not collated centrally and could only be provided at disproportionate cost.