Due to recent changes, every pensioner will get a guaranteed rise in their state pension matching the highest of inflation, increase in average earning or 2.5%.
This means that this year 84,974 people in South Wales East will get a rise of £4.50 a week, totalling £19.9 million of extra money for pensions in South East Wales.
This is the start of pension reform under this UK Government. This week, Liberal Democrat Pension Minister, Steve Webb MP, announced that the Government will be introducing a flat-rate pension of £140.
South Wales East Regional Candidate, Veronica German, commented:
“During these difficult times, Liberal Democrats in Government are making a real difference for today’s pensioners.
“Many pensioners will remember Labour’s pitiful rise in the state pension of 75p, which was frankly insulting. This Coalition Government has given pensioners a guaranteed rise of inflation, an increas in average earning or 2.5%, which is the highest, for this year on.
“A pensioner retiring today can expect to recieve around £15,000 more in basic pension over the course of their retirement than they would have done under Labour.
“This new flat rate will particulary benefit women and will ensure future pensioners have the guarantee of a decent future, something the Liberal Democrats have been campaiging on for years and are now delivering in Government.”
Commenting further, Liberal Democrat Pensions Minister Steve Webb said:
“The bold commitment of triple guarantee of a rise in the state pension by the highest of inflation, the rise in earnings of 2.5% will make the pension system fairer – but Liberal Democrats in Government will not stop there. That is why I have announced announced the Government will be bringing in a single flat-rate pension of £140 a week. We will replace a complex pension system.”
1. The triple lock guarantee of a rise in the state pension by the highest of inflation, the rise in earnings or 2.5% was in the Liberal Democrat manifesto at the last General Election.
2. The Liberal Democrat manifesto also said that a Liberal Democrat Government would look into creating a simple, universal pension.
3. On Monday 4 April 2011, Liberal Democrat Pensions Minister, Steve Webb, published the Government’s Green Paper, ‘A state pension for the 21st Century’, which sets out plans for a single-tier state pension. A consultation will be held on when would be the most appropriate time to introduce this, with a view to do so before the end of this Parliament in 2015.