State Pensions

In April 2012 the Basic State Pension will be increased in line with CPI inflation in the year up to the end of September 2011 (5.2 per cent). This means that it will rise by £5.30 to £107.45 per week.

The guarantee credit for pensioners will only be increasing by 3.9 per cent in April 2012. For a single pensioner the new weekly amount will be £142.70 and for a pensioner couple the weekly amount will be £217.90. However, the weekly threshold for savings credit, which provides a benefit to pensioners who have made some provision for their retirement beyond the basic state pension, will increase to £111.10 for a single pensioner and £177.20 for a couple, lowering the amount of savings credit provided.

Finally, the age at which the state pension will be paid will rise from 66 to 67 between April 2026 and April 2028. This is eight years earlier than previously announced and means that more people will have to work longer before receiving a state pension.

John Bloxham