Business

State pension rise of 2.5% confirmed

Cash Image copyright Getty Images
Image caption The state pension will change significantly for new pensioners in 2016

The basic state pension will rise by 2.5% in April - the equivalent of £2.85 more a week for a single person, the government has confirmed.

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.

Related Internet links

The BBC is not responsible for the content of external Internet sites