Guides and forms

Guides and forms

State Pension forecast online - changes to the Labour Market Attachment test

Changes brought in by the Pensions Act 2007 and the Pensions Act (Northern Ireland) 2008 mean that some customers, who have a long-term incapacity and who reach State Pension age on or after 6 April 2010, could be affected by some changes to the Labour Market Attachment Test rules.

Do the changes affect me?

This may affect you if you:

  • receive long-term Incapacity Benefit or Severe Disablement Allowance and
  • have received long-term Incapacity Benefit or Severe Disablement Allowance for any full tax year (or years) since 6 April 2002 and
  • will reach State Pension age on or after 6 April 2010

What is the Labour Market Attachment Test?

If you have worked and paid Class 1 National Insurance contributions for at least 10 per cent of your working life since 1978 by the time you reach State Pension age, you have passed the Labour Market Attachment test.

We use the test when we estimate how much additional State Pension you will get.

Sometimes we can tell you if you have passed this test before you reach State Pension age - if this applies to you, we will tell you in your State Pension forecast.

How is it changing?

From 6 April 2010, the Labour Market Attachment test will no longer be used for people reaching State Pension age after this date. This means that if you are entitled to Severe Disablement Allowance or Incapacity Benefit, the Labour Market Attachment test will no longer affect you.

How might this affect me?

If you apply for an online forecast and you meet the criteria above, you may be entitled to a higher additional State Pension than that shown on your forecast. This is because we are still updating our computer systems to reflect this rule change. We cannot say, at present, whether your additional State Pension will be affected.

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