Details of single flat-rate state pension delayed

1 min Read Published: 13 Jul 2012

The Government has delayed publishing its plans for a single flat-rate pension as ministers struggle with unravelling the complexities of the current scheme. It is  proposed that a white paper will now be published in the Autumn.

In April 2011 the Department for Work and Pensions published a green paper outlining plans to introduce a flat-rate pension of £140 per week for future pensioners. In March's budget Chancellor George Osborne said further details would be published in the  spring.

Years of tweaks and reform have left the UK state pension one of the most complicated in Europe with many receiving top-up benefits to their basic state pension to provide a liveable income.

Currently state benefits for retirees can include:

  • Basic State Pension
  • Additional State Pension, also known as SERPS
  • Increased State Pension for over 80s
  • Pension Credit - means tested for those on lower incomes

The Basic State Pension  currently increases each year by the highest of:

  • growth in average earnings
  • prices increases or
  • 2.5 per cent

Looking for a financial adviser near you?

Do you need financial advice? An independent financial adviser can show you how to make the most
of your money. Find your nearest qualified and regulated adviser using this VouchedFor search tool.

Alternatively, Hargreaves Lansdown, one of the UK’s largest firms providing restricted financial advice, is offering a £200 John Lewis voucher* to new clients.

  1. Quote : “The Basic State Pension currently increases in line with the Consumer Prices Index (CPI)”. With respect that’s not correct Mr. Fahy. The annual uplift is currently the greater of CPI or 2.5%

Comments are closed.