Money alert: Basic state pension set to climb by 2.5 per cent in April

 

Simon Read
Friday 05 December 2014 20:00 EST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

The basic state pension will climb by 2.5 per cent in April, the Government confirmed yesterday. That means a single person will get an extra £2.85 a week, bringing their total to £115.95.

The pension is increasing at around twice the rate of inflation because of the "Triple Lock" policy, which commits the Government to whichever is the highest – 2.5 per cent, the rise in inflation, or the rise in average earnings.

Meanwhile, around 900,000 of the poorest pensioners will receive a further boost because the rise has also been applied to the standard minimum guarantee in pension credit. This means the guarantee will climb to £151.20 from April 2015.

However, Morten Nilsson of the provider NOW: Pensions warned pre-retirement savers that regular increases in the state pension shouldn't lull them into a false sense of security.

"Research we recently conducted with 100 cross-party MPs revealed that nearly one in six think the state pension will be extinct in 30 years' time – or, if there is one, that it will be at a considerably lower level."

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in