State pension benefit rises - Pensions - News - Moneyfacts

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State pension benefit rises

State pension benefit rises

Category: Pensions

Updated: 06/04/2009
First Published: 06/04/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The weekly full basic State Pension will rise from £90.70 to £95.25 from today - almost an extra £5 a week.

The new rate represents an increase of five per cent, a rise based on the level of inflation as recorded by the Retail Prices Index in September last year.

The Chancellor has to increase the basic State Pension each year by the increase in the September Retail Prices Index or 2.5 per cent, whichever is the highest.

The Pension Credit standard minimum guarantee has also increased from £124.05 to £130.00 a week as from today, while couples will have seen their Pension Credit award rise from £189.35 to £198.45 a week.

"The increase in the basic State Pension will put extra cash in pensioners' pockets every week, to help them through these tough times," said Minister for Pensions and the Ageing Society Rt Hon Rosie Winterton MP.

"Poorer pensioners will get real help through the biggest ever rise in Pension Credit, which tops up their income, such as State Pension or a private pension, and which will ensure no pensioner needs to live on less than £130 a week, or £198 for couples."

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