Commenting on the news today that the government has suffered a defeat in the Lords over its proposed reform of the state pension system, Malcolm McLean, senior consultant, says:
“The proposal that earnings should be combined for National Insurance (NI) purposes makes total sense and if implemented will enable many low earners to build up a fuller entitlement to the state pension than is currently the case.
“This is important for those people who may have several part time jobs but do not earn enough from each job individually to reach the threshold needed to pay NI.
“Oddly enough earnings from different jobs are aggregated for tax purposes but not for NI and I have long thought this anomaly ought to be corrected and the two systems brought in line.
“The government ought to accept this amendment and not seek to reject it when the Bill returns to the Commons in due course.”