Brit Soc Sec chg: to patch - or basic pension based on residence only

Citizens' pension plan to lift nearly million out of poverty (UK)

http://money.guardian.co.uk/pensions/story/0,6453,1401413,00.html

Nearly a million pensioners, most of them women, will be lifted from "abject poverty" if the cabinet accepts Alan Johnson's plans to revolutionise Britain's welfare state.

The work and pensions secretary plans to replace the system of the past 50 years with a new "citizens' pension". Residence, rather than national insurance contributions, would become the criterion for a basic state pension. <snip>

Gordon Lishman, Director-General of Age Concern England, welcomed any move to improve the state pension rights of "millions of women, carers, low-paid and part-time workers who are being failed by today's system is absolutely crucial".

"A citizen's pension, if paid at a higher level to the existing basic state pension, could be one way of doing this and is a welcome addition to the debate." <snip>

Mr Johnson, a former postman who became the Union of Communication Workers' general secretary before entering the cabinet last summer, is adamant his long-term focus must be on getting people to save more and work beyond 65. In 30 years time the current 4:1 ratio of under 65s to over 65s will sink towards 2:1. Mr Johnson insists "there is no pensions crisis, pensions have never been higher," except for those, mostly women, left behind - "the millions who did not even get the basic state pension," he declares. <snip>