If you’re covering this issue please see the following comment from Jon Greer, head of retirement policy at Quilter:
“This government is infamous for u-turns, a reputation it’s probably not keen on. However, while the Chancellor may look like he’s got egg on his face, this is a sensible move. A significant number of self-employed on lower incomes would have faced substantial rises in the voluntary payments they make to access the state pension.
“However, even with this necessary about turn, we still have the much larger self-employed savings conundrum. Figures from the ONS show that 45% of self-employed workers aged between 35 and 55 have no private pension. A savings policy for the self-employed needs to acknowledge that there are legitimate reasons why some self-employed people do not engage in pensions, particularly those on lower incomes. One of the biggest challenges facing this group is the lack of certainty and security of income. It makes sense to keep an open mind about creative savings solutions for the self-employed and we hope the DWP will consider a pension ‘sidecar’ which would give early access to cash if required, which could be helpful to self-employed people with volatile or insecure income.”