Work and Pensions Secretary John Hutton reveals plans to 'end injustice' to women by recognising caring contributions in a major speech to the Fabian Women's Network.

A "new deal for women" will ensure that up to 270,000 more of them receive the full basic state pension by 2020, Work and Pensions Secretary John Hutton revealed in a major speech to the Fabian Women's Network on Thursday May 18th, previewing the publication of the government's pensions white paper next week.

Mr Hutton said next week's long-awaited proposals would be "the biggest renewal of our pension system since Clement Attlee's post-war Labour" in the 1940s. They would be "underpinned by a new deal for women that tackles the inequalities of a system that reflects an outdated view of family relationships, properly recognising the different ways in which people contribute to our modern society".

"At the heart of next week's reforms will be a new contributory principle that gives women a fairer entitlement to the basic state pension more quickly, while ensuring that we value social contributions equally with cash contributions and move progressively away from a system predicated on a 19th-century view of both working lives and social relationships."

Hutton pledged that the White Paper will "end the injustice" of the failure to recognise women's caring responsibilities. This would particularly help women over 45 - who are least likely to have National Insurance contributions to entitle them to the basic state pension, largely because they are more likely to have stayed at home to look after children and not to have returned to work.

Comment and responses

Jenny Watson, Chair of the Equal Opportunities Commission, responding to John Hutton at the Fabian Women's Network event said:

'"A new solution for our outdated pensions system is welcome, and we look forward to the White Paper. But the test these reforms must pass is whether they will deliver a state pension that offers an adequate income in retirement for all women.

The pensions system needs to fully recognise the vital unpaid contribution to society made by millions of parents and carers today, as well as in the future. To do this, the government must ensure the widest possible entitlement to the full basic state pension: that's the outcome that matters. Less than one in four recently retired women receive it today. These women, along with those approaching retirement, represent a huge proportion of the electorate, so no party cannot afford to ignore their concerns. Our polling found that 7 in 10 people are concerned about whether they have enough money in retirement.

To ensure that the White Paper works for women, the EOC urges the government to commit to a gender impact assessment of its proposals. That will give us all confidence that the proposed reforms will deliver a better future for tomorrow's female pensioners."

Seema Malhotra, director of the Fabian Women's Network, said "The Fabian Women's Network has played a key role in the debate about reform over the last year. The white paper is a chance to make history the scandal of inequality in income for women in retirement, and recognise fully the economic and social contribution women make. We must seize this opportunity.

We need to see independence for women enshrined in the pension system, and ensure fair reward for women's work – paid and unpaid. This needs to recognise the pattern of women's employment, including multiple part time jobs.

We need a system that women will be able to understand and engage with, which makes clear the benefits that will result from increased personal saving–and encourages saving from an early age."

Ian Naismith, Head of Pensions Market Development at Scottish Widows said: "The fact that women have a multitude of roles throughout their adult lives – some of which are likely to take them outside paid employment – is not at present fairly reflected in how we, as a nation, expect the individual to go about building pension assets. When you have a pensions system that overlooks the needs of women, it should come as no surprise to find so many women living on low incomes in retirement.

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