Basic state pension to rise to £119 per week

Autumn Statement boost for pensioners

In Wednesday’s Autumn Statement, the Chancellor will announce the basic state pension will increase to £119.30 a week from April 2016.

The BBC reported the basic state pension will get its biggest rise since 2001. The increase equates to 2.9% and will be worth £174.20 extra a year to someone on a full basic state pension.

Pensions minister Ros Altmann said pensioners had “done their best for society, worked hard, and we owe them”.

The Treasury said it was meeting its pledge to deliver “security for older people as savings are made in other budgets”.

The Government has previously confirmed a ‘triple-lock’ applies to the state pension, meaning it will rise each April to match the highest out of inflation or 2.5%.

After the increase, the BBC said, the full state pension will be worth £1,125 a year more in cash terms than in 2010. The full state pension should have increased by £1,770 by the end of this parliament, it added.

The state pension is set to undergo considerable change next year. The current system will be replaced by a flat-rate system worth about £155 a week.

It will apply to people reaching state pension age after 6 April 2016.

Retirement ProfessionalsBasic state pension to rise to £119 per week