Pensions expansion
Secretary of State for Work and Pensions Yvette Cooper has announced reforms enabling millions of people to save in a pension for the first time, describing them as the “biggest change to support for working people since the introduction of the minimum wage”.
Under the plans around nine million workers will be able to save in a pension with guaranteed contributions from their employer and the government from 2012, many for the first time. In particular, previously disadvantaged groups including women and carers are set to benefit; this year the number of women qualifying for a basic state pension will rise from 50% to 75% of the female population.
The Labour plans will benefit Streatham’s over 60s population of almost 13,000, providing support in retirement for those who were unable to work the previous 44 years for men and 39 years for women.
Under the plans both men and women will only need to work for 30 years, with allowances made for those who have made up gaps in their employment record. In addition grandparents who care for their
grandchildren will now earn credit and a more generous state pension.
Streatham’s businesses will be offered help to adjust to the changes. Start-up businesses created from 2012 will be given until 2016 to start enrolling staff in the scheme, and other local businesses will see their contributions phased in over the next three years. These changes will help Streatham businesses through the recovery whilst ensuring a decent retirement income for the area’s residents and employees.
Speaking about the reforms, Labour’s Parliamentary Candidate for Streatham Chuka Umunna said:
“These reforms are vital in giving thousands of people locally the chance to save in a pension. Along with our changes to the state pension later this year, this will ensure that pensions are fair and sustainable in the longer term.”
