State Pension increases to £124 a week - Pensions - News - Moneyfacts

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State Pension increases to £124 a week

State Pension increases to £124 a week

Category: Pensions

Updated: 05/10/2012
First Published: 10/04/2012

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 It is now over 6 months old so the content may be out of date.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 State Pension is to increase this week, with pensioners picking up £124 each week.

The increase includes both the basic and additional state pension, with the Government saying that it is spending an extra £4.5 billion on pensioners this year.

The basic state pension is to increase from £102.15 to £107.45 – the biggest ever state pension rise of £5.30 a week.

Additionally, the Department of Work and Pensions said that the basic state pension will be 17.3% of average earnings, the highest it has been in any year since 1997.

"We owe older people in society our respect, our support and our care," said Prime Minister David Cameron.

"That's why from the start I've made sure this Government protects pensioners and gives them the help they need."

The increase has been made as a result of the Government's pledge to increase the state pension each year by the highest rise out of prices, average earnings or 2.5%.

It is estimated that the average person reaching state pension age in 2012/13 can expect to receive an additional £15,000 in basic state pension over their retirement.

"My first concern is to make sure our pensioners have a decent income in retirement, and that's why we are paying out £4.5 billion extra from this week, boosting the average state pension to £124 a week," said Pensions Minister, Steve Webb.

"Up-rating the basic state pension by the highest of earnings, prices or 2.5% will have a dramatic impact in driving up the value of the state pension."

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