Changes to Basic State Pension
Confirmation from the Dept of Works and Pensions has outlined changes to the basic state pension.
The coalition has been concerned with the complexities of means testing and the burden this puts on the state to adminster means tested benefits.
Apparently radical reforms are planned with a flat rate pension of £140 per week.
The aim is to put an end to means testing, simplify tax and make pension planning more accesible to everyone.
The Daily Mail has indicated that the current pension of £97.65 for the basic state pension plus top ups will be changed to a simple flat rate.
The new £140 a week ‘single tier’ pension will provide an income of £7,280 per year for a single person and £14,560 for a couple.
It is anticipated that the changes will take place in 2015.
Once further information is available we will let you know.
