£4.5 billion pensions boost from this week
- Published on Tuesday, 10 April 2012 10:57
- Posted by Matthew Abbott
From this week the average state pension payment for 2012/13 is estimated to be £124 a week, an increase of £6 from last year. This includes both the basic and additional state pension. The Government is spending an extra £4.5 billion on pensioners through the uprating of benefits for pensioners this year.
The Prime Minister David Cameron said:
“We owe older people in society our respect, our support and our care. That’s why from the start I’ve made sure this government protects pensioners and gives them the help they need.
“We brought in the triple-lock to restore the link between pensions and earnings – guaranteeing the basic state pension rises by whichever is highest out of rises in prices, average earnings or 2.5%. Today we’re delivering with 5.2% increase in the basic state pension, an extra £5.30 a week, the largest cash rise in history.
“At a time when we’ve having to make cuts elsewhere, this is further proof of this government’s commitment to the elderly. Already we’re protecting free national bus travel and free TV licences for the over-75s, backing the Winter Fuel Payment and increasing spending on the NHS. I know these are difficult times – but my promise to pensioners is that we are on your side."
Pensions Minister Steve Webb said:
“My first concern is to make sure our pensioners have a decent income in retirement, and that’s why we are paying out £4.5 billion extra from this week, boosting the average state pension to £124 a week.
“Uprating the basic state pension by the highest of earnings, prices or 2.5 per cent will have a dramatic impact in driving up the value of the state pension. This is one of the biggest spending commitments we have made in difficult economic circumstances, and will provide more money for pensioners both now and in years to come.”
The basic state pension will increase from £102.15 to £107.45 a week from this week.
This is the biggest ever cash increase in the basic state pension of £5.30 a week, a rise of 5.2 per cent.
The basic state pension will be 17.3 per cent of average earnings, the highest it has ever been in any year since 1997.
The Government is spending £6.6 billion on uprating benefits this year. £4.5 billion of this money will go to pensioners in extra spend on the state pension and pension credit.
The triple guarantee to uprate the basic state pension by the highest of earnings, prices or 2.5 per cent will mean that the average person reaching state pension age in 2012/13 can expect to receive an additional £15,000 in basic state pension over their retirement.