Greg Hands M.P. has welcomed the Government’s plans to introduce a single-tier state pension, bringing pensions fairness to women and a simpler system to all.
The Government believes that people deserve dignity and respect in old age, and to be given the support they need. It has delivered the biggest ever rise in the basic state pension, is simplifying the state pension and is also introducing auto-enrolment pension schemes in the workplace.
These reforms are replacing the complex pension system that evolved under Labour, which left many uncertain about how much they would receive. The new system is intended to be simple and easy to understand. It will also ensure that women are fully recognised for years spent bringing up a family.
- • Single-tier state pension. A new single, flat-rate state pension, set above the current basic level of £142.70 per week, that will benefit women, low earners and the self employed.
• Triple lock to protect the basic state pension. The state pension will now always rise in line with inflation, earnings or 2.5 per cent – whichever is the higher. Last year, the Government increased the state pension by £5.30 a week, the biggest ever increase. This year, the pension will increase by 2.5 per cent, higher than inflation and earnings.
• Introducing automatic enrolment. Automatic enrolment will see people being included in their workplace pension scheme without having to do anything, unless they choose to opt out – this will get up to 9 million more people saving for their pension.
Commenting , Greg Hands M.P. said: “Under Labour, pensioners had to suffer the indignity of a 75p increase in their pension. This year, the increase will be £2.70 per week, some 2.5 per cent.
“The Government is protecting current pensioners and providing for the future. Women, in particular, will benefit from the new single-tier pension which will be set at the same, generous rate for everyone when they reach pension age.”