Proportion of pensioners on different percentages of Basic State Pension (BSP), Great Britain (September 2008)
• A larger proportion of women than of men receive less than the full Basic State Pension (BSP), currently worth £95.25 per week. In September 2008, 34 per cent of female pensioners (2.3 million women) received 60 per cent of full BSP or less, compared with 2 per cent of male pensioners (under 0.1 million).
• Non-contributory (income-related) Pension Credit is made up of two elements: a guarantee credit element which is designed to provide a minimum level of income for pensioners, and a savings credit element. Single women are the largest group of pensioners receiving guarantee credit, with 1.3 million women recipients in August 2008.
• Parliament has recently enacted a number of pension reforms. These are designed to transform the nature of state pension provision from 2010 so that, for example, 95 per cent of both men and women pensioners should be on full BSP by 2050.
• Employees with broken work histories – particularly women who take breaks from work to care for children – will see immediate gains at the beginning of the reforms, although women will also face increases in State Pension Age from 2010. It will take longer for the new system to deliver its full benefits to carers.
Note: Guarantee credit is means tested: the pensioner's income is assessed and guarantee credit is paid if income is below a certain level. In 2009/10, the standard guarantee credit level is £130.00 per week for a single person and £198.45 per week for a couple.
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