Govt sets level for new state pension

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The new full state pension will be set at £155.65 a week when it begins to be paid in April 2016, the Chancellor has announced.

Speaking as part of the Autumn Statement today, George Osborne confirmed the weekly amount which will be paid to people with a full 35 year National Insurance Contribution record.

Workers who have been contracted out of additional state pension during their careers will receive less.

He said the level of the single tier pension was “another example of progressive Government in action”.

In addition, the basic state pension will rise by £3.35 to £119.30 a week from 2016.

The Chancellor said this is “the biggest real terms increase to the basic state pension in 15 years”.

He added: “Taking all of our increases together over the last five years pensioners will be £1,125 better off a year than when we came to office.”

He also confirmed the triple lock on state pension payments would be maintained.

Payments will continue to be increased by the higher of 2.5 per cent, earnings or inflation.