Commenting on the recommendations on how to solve the Gender Pensions Gap in the Work and Pensions Select Committee’s reporting on its Saving for Later Life Inquiry, Chris Noon, Partner, Hymans Robertson, says:

“We are very pleased to see that the Work and Pensions Select Committee has recognised the importance of reducing the inequality of the widening the Gender Pensions Gap. It is good to see them making the recommendation that the Government consider the case for moves such as a carer’s credit to their auto-enrolment pension. It is rightly also holding the Government to account by stating that ‘if it chooses not to do so, it must explain its alternative plan to address the gender pension gap mainly caused by labour market inequalities.’

“We are extremely encouraged to see that the carer’s credit is based on our specific recommendation of a proposed a system of automatic enrolment contribution credits, analogous to State Pension credits. Our proposal is that this would reflect the fact that people caring for children or elderly relatives were adding value to society. The committee has taken into account that while we believe this would be a significant cost to the Government, “time away from work is the biggest contributor to the size of the Gender Pension gap and needs to be addressed” to tackle this massive inequality.

“Now that the Select Committee has been so compelling in its recommendation, we keenly wait with anticipation for the Government to act and make the changes we believe are urgently needed to help so many people, predominantly women.”