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<p>The Government published an impact assessment ‘<em>New State pension: impact on
an individual's pension entitlement longer term effects’</em> in January 2016. This
included impacts on derived entitlement to the State Pension. The estimates show around
2 per cent of men and 6 per cent of women reaching State Pension age between 2016-2020
were expected to receive less State Pension due to the withdrawal of derived entitlement.
The proportion affected falls over the first two decades of the new State Pension.
Further information on the impact of new State Pension reform on derived entitlement
is available here: <a href="https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/491845/impact-of-new-state-pension-longer-term-reserach.pdf"
target="_blank">https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/491845/impact-of-new-state-pension-longer-term-reserach.pdf</a>.</p><p>
</p><p>Information on the overall costs of the new State Pension (formerly the Single
Tier) is available here: <a href="https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/311316/pensions-act-ia-annex-a-single-tier-state-pension.pdf"
target="_blank">https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/311316/pensions-act-ia-annex-a-single-tier-state-pension.pdf</a></p><p>
</p><p>The cost estimates of the new State Pension do not provide a specific breakdown
of savings from the inheritance of spouses’ State Pension.</p><p> </p><p>The new State
Pension was introduced for people reaching State Pension age from 6 April 2016 onwards
to provide a clearer, simpler and sustainable system for the future and is based on
an individual’s own National Insurance record. This both reflects changes in society
where individuals are able to build a State Pension in their own right and a wider
crediting regime that rewards periods of caring when people are away from the labour
market. There is transitional protection of the old derived basic State Pension for
women whose own contribution history was affected by taking the option to pay reduced-rate
National Insurance contributions. Transitional arrangements also enable widowed people
in certain circumstances to inherit all, or part, of the additional State Pension
or Graduated Retirement Benefit they could have inherited under the old State Pension
system.</p><p> </p><p>A step-by-step guide to the changes to the rules on deriving
and inheriting State Pension is available on the Government website at <a href="http://www.gov.uk"
target="_blank">www.gov.uk</a> using the search term 'state pension through partner'.</p><p>
</p><p>The transitional arrangements for the new State Pension have been designed
to be to fair to the greatest number of people possible and to ensure that the vast
majority of people have at least the full amount of new State Pension as quickly possible.</p><p>The
new State Pension will benefit many women, carers and self-employed people, who historically
often did less well under previous systems. For example, over three million women
stand to receive an average of £550 more per year by 2030 as a result of the recent
reforms.</p><p> </p><p>In addition, we are committed to the triple lock for the duration
of this Parliament. In April 2019, full amounts of the basic and new State Pensions
increased by 2.6%, in line with average earnings growth. The full yearly rate of the
basic State Pension is worth over £1,600 more in cash terms 2019/20 than it was in
2010.</p><p> </p><p>Furthermore, Pension Credit provides a top up means-tested benefit
for pensioners to protect those who are most in need.</p>
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