Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what estimate his Department has made of the value of graduated pension contributions paid by individuals prior to 1975 relative to the level of the new State Pension.

The Graduated Retirement Benefit (GRB) scheme was the precursor to the additional State Pension and ran from 1961 to 1975. One unit of GRB was earned, by a man, for every £7.50 of graduated contributions paid, and in the case of a woman born before 6 April 1950, for every £9.00 paid. The maximum number of units available was 86 for a man and 72 for a woman. These rules were equalised for women born on or after 6 April 1950, with the result that GRB contributions paid by women who have reached State Pension age since April 2010 will be “converted” into GRB units on the same basis as for men. A unit is currently worth 17.83p per week (2025/26).

For people who reached State Pension age before 6 April 2016, GRB is normally paid with other State Pension components, but it is paid on its own if there is no other State Pension entitlement.

GRB is not payable as a separate amount for people who reach State Pension age on or after 6 April 2016, who will claim the new State Pension. Instead, people who had made contributions under the old State Pension system, including graduated contributions, will have their new State Pension calculated under transitional rules. Under the transitional arrangements, we look at an individual's National Insurance record as it stands on 6 April 2016 and compare what this would give them under the new State Pension rules with what they would have built up under the old system. The higher of these two values will be used as their Starting Amount for the new State Pension going forward. Therefore, any previous Graduated Retirement Benefit will be consolidated, along with other elements, into an individual’s entitlement to the new State Pension.