Retirement celebration cake and candles
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'Decent' pension for all proposed

The government is planning a "very radical" overhaul of the state pension, Business Secretary Vince Cable says.

He did not confirm newspaper reports that it could rise from about £97 a week for a single person to £140.

But Mr Cable said the proposals, such as replacing means-tested pension credits with a flat-rate payment, would ensure a "decent" retirement.

Critics said it sounded "too good to be true" and unaffordable, despite savings in administration costs.

Hugh Pym reports.

  • 25 Oct 2010