State Second Pension (S2P) provides a more generous Additional State Pension for low to moderate earners and includes carers and people with long-term illness or disability.
Therefore, S2P helps people who may not be able to earn due to their caring responsibilities or incapacity. You can combine National Insurance contributions from earnings and credits to gain qualifying years of S2P.
Low to moderate earnings
For the tax year 2013-14, if you are employee with annual earnings of at least £5,668 but less than £14,400, you will be credited with S2P as though you have earnings of £14,400.
You will also be treated as having earnings of £14,400 if, throughout the year, you receive:
- Carer’s Allowance or would but for the overlapping benefits rule
- The long-term rate of Incapacity Benefit or would but for the overlapping benefit rule or because you do not meet the contribution conditions
- Severe Disability Allowance
- National Insurance Credits for Basic State Pension (those in receipt of Child Benefit for children under 12 years, those with caring responsibilities for over 20 hours a week and registered foster Carers)