View more on these topics

Budget 2011: Govt to propose £140 flat-rate pension for future retirees

Chancellor George Osborne has confirmed that proposals for a flat-rate state pension for future retirees will be brought forward “shortly”.

The Budget document says the Government will look to reform the state pension for future pensioners so that it provides “simple, contributory, flat-rate support above the level of the means-tested guaranteed credit”.

It says the DWP will publish a much anticipated green paper to consult on options for reform, one of which will be a single-tier payment worth around £140 per week.

This reform would end contracting-out for defined benefit pension schemes. The Government says it will honour contributions made into the current system, although details of how people who have contracted-out of the state second pension and Serps will be treated have yet to be revealed.

The document says: “The Government will investigate the potential impact on employees and schemes in both the private and public sectors. The Government will honour contributions to the current system.

“Given longer-term pressures on the public finances, these reforms will be designed so as not to increase public spending dedicated to state pensions.”


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. Would it be just or legal to to pay some pensioners £148 and others just £98 per week if they both contributed all their working lives.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm