Reform of pension system demanded

Pension prospects can be harmed by having a baby

The pension system must be reorganised so carers and people looking after children do not miss out, says the Equal Opportunities Commission.

It says the current system of credits often fails to compensate people in full for not working, meaning women in particular are affected.

An EOC survey found "anger and concern" over the current system and public support for changes to help women.

A coalition of groups has called for an end to "inequalities" in the system.

We need a new system that puts independence and equality at its heart Jenny Watson EOC

The groups, including the TUC, Age Concern and the Women's Pension Network, urged the government to end the "scandal" of the poor level of pensions for women.

The call follows a warning by the Department of Work and Pensions earlier this month that more than two million women were not building up any entitlement to the basic state pension.

Modern world

The EOC urged new Work and Pensions Secretary John Hutton to tackle the problem.

Jenny Watson, acting chairwoman of the EOC, said: "In today's modern world an increasing number of people do not marry, many marriages end in divorce and neither men nor women fit yesterday's mould of a breadwinner husband and a stay-at-home wife.

"So we need a new system that puts independence and equality at its heart and rewards the crucial work done by parents and carers."

The campaigners are calling for a common entitlement to the basic state pension and moves to close the pension gap between men and women in company schemes.