Minister details pension increase
Pensioners will benefit from "the largest ever cash rise in the basic state pension", the Government said today as details on future welfare payments were set out to MPs.
Speaking in the House of Commons, Pensions Minister Steve Webb fleshed out the benefits up-rating first outlined as part of the Chancellor's autumn statement last week. for 2012-13.
Mr Webb said the Government, he said, had restored the earnings link for the basic state pension and protected it by a triple lock, guaranteeing a rise either in line with earnings, prices or 2.5 per cent.
This, he added, would guard against a repeat of "small rises" such as the 75p increase in 2000.
Mr Webb said the new rate for the basic state pension would be £107.45 for a single person, an increase of £5.30 per week, adding: "I can announce therefore that from April 2012 the basic state pension is forecast to be 17.1 per cent of average earnings, a higher share of average earnings than in any year of the last Labour Government since 1997."
Mr Webb said the state additional pension (SERPs) would rise this year by 5.2% and on pension credit the single person rate of the guarantee credit would rise by £5.35 a week from next April.
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