According to the Treasury, millions of pensioners can expect to see their spending power boosted to its highest level for 25 years.<\/p>\n
Chancellor George Osborne will confirm the increase to the basic state pension to \u00a3119.30 every week from April 2016, as part of this week\u2019s scheduled Spending Review.<\/p>\n
The 2.9 per cent rise will be worth an extra \u00a3174.20 every year to someone on a full basic state pension. It will be the biggest increase in real terms since 2001 and, as a share of average earnings, the highest since 1991.<\/p>\n
Pensions minister Ros Altmann said pensioners had \u201cdone their best for society, worked hard, and we owe them\u201d.<\/p>\n
Alongside the rise in the basic state pension, the Chancellor is likely to confirm that the starting rate for the new single-tier pension will be worth about \u00a3155.<\/p>\n
The new payment is designed to simplify the state pension system. From April, those reaching pension age will receive the new pension. Its supporters say it will provide a firm foundation for retirement, with the large majority of people building up sufficient National Insurance contributions to become entitled.<\/p>\n
It will be a particular boost for women \u2013 with 650,000 of them getting an average of \u00a3400 more a year in the first ten years of the reformed system. The new system will also address gender inequality in the system, bringing forward by over a decade the point when men and women will achieve equal payments.<\/p>\n
The Treasury also said in a statement that the Government was meeting \u201cits pledge to help to deliver security for older people as savings are made in other budgets\u201d.<\/p>\n
Baroness Altmann said: \u201cOver the last quarter of a century, pensioners have fallen below the rest of society as average earnings have done so much better than the increases in the state pension.<\/p>\n
\u201cSince 2010, we have really begun to correct that. We are now back to the highest level for a quarter of a century \u2013 and quite right too. Pensioners deserve to be treated much better than they have been in the past and to have security in retirement.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
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