State pension rise confirmed at 2.5%
The government has confirmed that the basic state pension will rise by 2.5% in April – the equivalent of £2.85 more a week for a single person.
Pensions Minister Steve Webb said that the increase meant a single person would receive £115.95 a week.
This is in line with the government’s “triple-lock” commitment to raise the state pension in line with the highest of average earnings, prices or 2.5%.
The poorest 900,000 pensioners are also eligible for top-up payments.
This minimum guarantee in the Pension Credit system means that these people would receive up to £151.20 a week from April, and married couples would receive up to £230.85.
This will be the last time the state pension as a whole is calculated in this way.
From April 2016, a new flat-rate pension will be introduced for new pensioners, but not existing pensioners. The exact level will be set in a year’s time, however this will be no less than £151.25, Mr Webb confirmed.