View more on these topics

Independent Scotland would introduce £160 a week state pension and keep triple-lock

An independent Scotland would raise the level of the single-tier state pension to £160 a week and retain the triple-lock guarantee.

The Scottish government has today published a white paper setting out the implications of a “yes” vote in September 2014.

The UK Government has proposed scrapping means-testing in favour of a new, flat-rate state pension worth £144 a week for future retirees from April 2016. The independence paper says Scotland would also introduce these reforms, with the payment set at £160 a week, under the same time frame. 

In addition, the triple-lock – which guarantees the state pension increases by the highest of earnings, prices or 2.5 per cent – would be retained for at least the first parliament of an independent Scotland.

The UK Government has only committed to increasing the single-tier state pension in line with earnings.

“Within the first year of independence, the single-tier pension will be set at a level of £160 per week,” the paper says.

“In the unlikely event that the rest of the UK rate for the single-tier pensions is set at a higher level, the Scottish single-tier pension will match the higher figure.

“The rate of the single-tier pension will be increased on an annual basis in line with the triple-lock. This commitment will initially be in place for the period of the first parliament of an independent Scotland.”

The white paper says the personal allowance and tax credits in an independent Scotland would increase in line with inflation in the short-term. In the longer term, it says Scotland would introduce a “clear and simple” tax system.

It also says Scotland would look to improve access to annuity advice at retirement, although the measures that would be put in place remain unclear. 

In addition a Scottish equivalent of Nest, called the Scottish Employment Savings Trust or ‘Sest’, would be established with an obligation to accept any employer wishing to use it.

The paper also says an independent Scotland would also look to set up a Scottish Pensions Regulator and suggests Scotland could either play its part in the Pension Protection Fund, or set its own scheme.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

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

  1. “In addition a Scottish equivalent of Nest, called the Scottish Employment Savings Trust or ‘Sest’, would be established with an obligation to accept any employer wishing to use it.”

    What a terrible missed opportunity to call it the Jocks’ Employment Savings Trust. The advertising campaign writes itself. “Workplace pensions for all – surely you Jest?”

    As for the rest, no words necessary. Presumably this is all paid for by the magical money tree known as North Sea Oil.

Leave a comment

Close

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

Email: customerservices@moneymarketing.com