Basic state pension to rise to £119.30 a week from next April

The basic state pension will rise to £119.30 a week from April 2016, the Treasury has said.

Chancellor George Osborne will highlight the £570 a year rise in his Autumn Statement next week.

The Chancellor is also expected to announce details of a new "flat rate" pension for those reaching state pension age after April 6 2016.

What do the changes mean for you?

  • People already claiming the full basic state pension will receive £119.30 from April 2016 - a 2.9% increase.

  • A new "flat rate" pension will be introduced for those who retire from April 2016.

  • Details of the new pension will be announced in the Chancellor's Autumn Speech next week.

  • The Treasury says the new state pension will provide a particular boost to women - with 650,000 getting an average of £400 more a year from 2016 in the first ten years of the pension.

Will people be better off under the new state pension?

It's good news for those already claiming their state pension, who will see an increase of £3.30 a week from next April.

But The Financial Times reported most people retiring after next April would be worse off under the new pension system which is being introduced.

The FT said Department for Work and Pensions data showed 80% of 481,000 people who had applied for a state pension statement between September 2014 and October 2015 (which estimates how much state pension a person may get when they reach state pension age) would be worse off under the new system.

However a third of the 281,000 women who had applied for a statement would be better off under the new rules, it said.

What has the Government said?