Thousands of women to get full pension rights

LONDON (Reuters) - Hundreds of thousands more women will win the right to receive a full state pension under a proposal announced by the government on Friday.

Many women, such as those who gave up work to raise children or care for relatives, miss out on the full pension, currently 87.30 pounds a week, because they have not paid enough National Insurance (NI) contributions.

Currently only about a third of women at retirement age are eligible for the whole amount because they have not contributed to NI for the minimum 39 years.

Work and Pensions Secretary James Purnell said an amendment would be proposed to the new Pensions Bill to allow women to buy more missing years of NI contributions.

Currently people can buy back six years but the proposals would allow women to purchase a further six years.

In addition, the bill will also change the NI requirements so people would only need 30 years of contributions to receive the full amount.

The change will apply to women who reach retirement age between April 6 this year and April 5, 2015, and who have amassed 20 years or more of NI contributions.

"By 2010, around 75 percent of women reaching state pension age will be entitled to a full basic state pension, rising to 95 percent by 2025," Purnell said.

"However, we are mindful of the potential disadvantages faced by those who do not have a full work history, mostly women and those with caring responsibilities."