Pensions Minister Steve Webb
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Government sets out 'simple' plan for flat rate pension

There is a national consensus for the need for a single flat-rate pension, according to the government.

Pensions Minister Steve Webb told the House of Commons that plans for a new system, expected to begin in April 2017, would provide a "decent" pension for people.

Instead of a basic pension of £107 plus various mean-tested top-up payments, recipients will get a weekly payment equal to the value of £144. But the Institute for Fiscal Studies said the reform would gradually reduce the value of pensions in future years.

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