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Industry backs £140 a week single-tier state pension

The Government looks set to introduce a £140 flat-rate, single tier state pension for future retirees after respondents to the consultation overwhelmingly backed the proposal.

The DWP green paper, published on April 4, outlines two potential options for state pension reform.

The first is an acceleration of the previous administrations plans, so the state second pension would move to a flat rate by 2020.

The second “more radical” option would see the introduction of a single-tier state pension of around £140 at today’s prices for future retirees.

The DWP says more than three-quarters of organisations that responded to the consultation favoured the second option in principle.

Pensions minister Steve Webb (pictured) says: “In spite of our best efforts to encourage take-up, pension credit has failed to reach over a million low income pensioners who are entitled to help.

“What we want to do is reform to create a simpler state pension that won’t leave people relying on means testing to make ends meet.

“A simple, decent state pension, that is easy to understand would give people more clarity and certainty about what they will get from the state.”

Ministers will now consider the feedback before bringing forward detailed reform proposals.

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