Cautious welcome for £144-a-week pension in East Lancashire

PENSIONERS in East Lancashire will be entitled to a simple flat-rate weekly state pension of £144 relevant to inflation from 2017.

David Cameron and his Coalition’s radical reforms are an attempt to simplify the current multi-tiered system by scrapping top-ups and ending the practice of “contracting out” the state second pension to employers.

The changes will benefit women who took time off work to care for families, low-earners, self-employed people and those who have worked intermittently.

However, throughout the United Kingdom around six million higher paid people will be expected to increase their National Insurance contributions by 1.4 per cent, but their state pension will not expand accordingly.

Jake Berry, the MP for Darwen and Rossendale, welcomed the move.

He said: “The single tier pension is the next major step in our reform to the welfare system.

“Not only are we making work pay with universal credit, but we will now ensure it pays to save. Under the existing system millions of savers are penalised for doing the right thing thanks to the way pension credit works.

“This reform is also good news for women who for too long have effectively been punished by the current system. The single tier pension will mean people have certainty in what they can expect from the state.”

Instead of the current a basic pension of £107 a week plus various means-tested top-ups, recipients will get £144 plus inflation rises over the next four years, from 2017 at the earliest.

Jack Straw, the Labour MP for Blackburn, said: “People are basically supporting the plans but being cautious because we don’t know how it’s going to operate.

“It’s too early to say whether it is going to work out.

“In principle, a single-tier pension scheme is the answer, but the details are far from clear and it’s too early to judge.

“The aim is always to simplify the pensions system but it doesn’t always work out that way.

“There are many hurdles between today’s announcement and the implementation of the proposals.”

Comments (10)

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4:42pm Tue 15 Jan 13

1952 rover says...

If this Government are bringing it in be very careful. It must be a con trick.
If this Government are bringing it in be very careful. It must be a con trick. 1952 rover

4:46pm Tue 15 Jan 13

Caspar the ghost says...

Another watch my lips...not my hands. Simply a "Conn Job".
Another watch my lips...not my hands. Simply a "Conn Job". Caspar the ghost

5:05pm Tue 15 Jan 13

jimpy0 says...

All the pension should be means tested !
All the pension should be means tested ! jimpy0

5:17pm Tue 15 Jan 13

jim 2012 says...

jack straw needs to fight for a better state pension for existing pensioners
the pension rates are the lowest in europe this so called rise in twenty seventeen will do nothing to help those in pensioner poverty now
if it looks like a con then it probably is a con
jack straw needs to fight for a better state pension for existing pensioners the pension rates are the lowest in europe this so called rise in twenty seventeen will do nothing to help those in pensioner poverty now if it looks like a con then it probably is a con jim 2012

6:06pm Tue 15 Jan 13

mavrick says...

The Tories are masters of sleight of hand read the small print. It only starts for new pensioners in 2017, the people on pensions before that will not get the new rate. It will be interesting to see what else would be available. There needs to be a lot more details released before the truth will emerge. But it looks like a con so far.
The Tories are masters of sleight of hand read the small print. It only starts for new pensioners in 2017, the people on pensions before that will not get the new rate. It will be interesting to see what else would be available. There needs to be a lot more details released before the truth will emerge. But it looks like a con so far. mavrick

6:06pm Tue 15 Jan 13

juanbbien says...

As it stands now to for a full pension you need to have thirty years paid in contributions were previously you needed to have forty four years,I'm due to receive my pension this year having paid in fourty three so I went to one of Jack Straws surgeries and asked him what as happened to my extra thirteen years that I paid in that I don't now need to qualify where have they gone, i and many others should be entitled to a rebate somewhere in the region of seven thousand pound for contributions we have paid in that was five months ago and after various e-mails saying it is being looked into I'm still awaiting a conclusive answer
As it stands now to for a full pension you need to have thirty years paid in contributions were previously you needed to have forty four years,I'm due to receive my pension this year having paid in fourty three so I went to one of Jack Straws surgeries and asked him what as happened to my extra thirteen years that I paid in that I don't now need to qualify where have they gone, i and many others should be entitled to a rebate somewhere in the region of seven thousand pound for contributions we have paid in that was five months ago and after various e-mails saying it is being looked into I'm still awaiting a conclusive answer juanbbien

6:21pm Tue 15 Jan 13

2 for 5p says...

Interesting point:

What will our benefit bags who havnt paid any contributions get.
Interesting point: What will our benefit bags who havnt paid any contributions get. 2 for 5p

10:07pm Tue 15 Jan 13

Info-warrior says...

Who loses out then.? Existing pensioners and those who reach their state pension age (SPA) before the new scheme is introduced in 2017. They will be excluded from the new scheme and many have already expressed their resentment and what they see as being treated as ‘second-tier pensioners’. Expect a political backlash on this.
By pushing the original start date from 2015 to 2017 there will be more people who will have reached their state pension age in the intervening period and will now not qualify for the new pension. There will also be a minimum NI qualifying period of 10 years which will mean that those with less than this will receive (no pension). There is also likely to be a ‘cliff-edge’ effect where someone who reaches their SPA the day before the implementation date could be awarded a pension some 40% less than someone who reaches SPA the day after.
The position is not clear on those many thousands who have accrued rights to the state pension (S2P formerly SERPS) and would have qualified for a total pension in excess of the new rate under the old rules. Will they be limited to the new pension rate, will they still receive the higher rate and how, when and for how long will this be allowed?
The impact of the effective ending of the ability to contract-out of S2P by salary-related occupational schemes in both the public and private sectors will be an issue for both employees and their employers. This will result in former reductions in NI rates being lost with a corresponding increase in NI payable. An employee on £25,000 a year could pay an extra £270 a year in NI with his/her employer facing an increase of £657 a year. This could cause friction in the public sector with many workers already having to pay extra for their public service pensions and could persuade more employers in the private sector to close down these type of gold plated but expensive schemes.
It is likely that in future SPA will be pushed back more quickly to compensate for the increasing cost to the taxpayer of the state pension probably reaching 70 or beyond within the next 25 years.
Existing pensioners and those who reach their state pension age (SPA) before the new scheme is introduced in 2017. They will be excluded from the new scheme and many have already expressed their resentment and what they see as being treated as ‘second-tier pensioners’. Expect a political backlash on this.
By pushing the original start date from 2015 to 2017 there will be more people who will have reached their state pension age in the intervening period and will now not qualify for the new pension. There will also be a minimum NI qualifying period of 10 years which will mean that those with less than this will receive no pension. There is also likely to be a ‘cliff-edge’ effect where someone who reaches their SPA the day before the implementation date could be awarded a pension some 40% less than someone who reaches SPA the day after.
The position is not clear on those many thousands who have accrued rights to the state pension (S2P formerly SERPS) and would have qualified for a total pension in excess of the new rate under the old rules. Will they be limited to the new pension rate, will they still receive the higher rate and how, when and for how long will this be allowed?
The impact of the effective ending of the ability to contract-out of S2P by salary-related occupational schemes in both the public and private sectors will be an issue for both employees and their employers. This will result in former reductions in NI rates being lost with a corresponding increase in NI payable. An employee on £25,000 a year could pay an extra £270 a year in NI with his/her employer facing an increase of £657 a year. This could cause friction in the public sector with many workers already having to pay extra for their public service pensions and could persuade more employers in the private sector to close down these type of gold plated but expensive schemes.
It is likely that in future SPA will be pushed back more quickly to compensate for the increasing cost to the taxpayer of the state pension probably reaching 70 or beyond within the next 25 years.
Existing pensioners and those who reach their state pension age (SPA) before the new scheme is introduced in 2017. They will be excluded from the new scheme and many have already expressed their resentment and what they see as being treated as ‘second-tier pensioners’. Expect a political backlash on this.
By pushing the original start date from 2015 to 2017 there will be more people who will have reached their state pension age in the intervening period and will now not qualify for the new pension. There will also be a minimum NI qualifying period of 10 years which will mean that those with less than this will receive no pension. There is also likely to be a ‘cliff-edge’ effect where someone who reaches their SPA the day before the implementation date could be awarded a pension some 40% less than someone who reaches SPA the day after.
The position is not clear on those many thousands who have accrued rights to the state pension (S2P formerly SERPS) and would have qualified for a total pension in excess of the new rate under the old rules. Will they be limited to the new pension rate, will they still receive the higher rate and how, when and for how long will this be allowed?
The impact of the effective ending of the ability to contract-out of S2P by salary-related occupational schemes in both the public and private sectors will be an issue for both employees and their employers. This will result in former reductions in NI rates being lost with a corresponding increase in NI payable. An employee on £25,000 a year could pay an extra £270 a year in NI with his/her employer facing an increase of £657 a year. This could cause friction in the public sector with many workers already having to pay extra for their public service pensions and could persuade more employers in the private sector to close down these type of gold plated but expensive schemes.
It is likely that in future SPA will be pushed back more quickly to compensate for the increasing cost to the taxpayer of the state pension probably reaching 70 or beyond within the next 25 years.
“The task of bringing together the various diverse components that currently collectively make up state pension provision was never going to be easy and it is inevitable that there will be some losers as well as winners in the process of change.” but you must except that £144 will be worth far less in 2017 than £107.45 is worth today.
Especially given the fact that we are looking at another market crash in only a couple of months far worse than the previous 2008 crash which leading stock market players predict will cast a depression across the world for a minimum of 5yrs. Which is in line for when the current government are pushing through with their austerity measures.
Who loses out then.? Existing pensioners and those who reach their state pension age (SPA) before the new scheme is introduced in 2017. They will be excluded from the new scheme and many have already expressed their resentment and what they see as being treated as ‘second-tier pensioners’. Expect a political backlash on this. By pushing the original start date from 2015 to 2017 there will be more people who will have reached their state pension age in the intervening period and will now not qualify for the new pension. There will also be a minimum NI qualifying period of 10 years which will mean that those with less than this will receive (no pension). There is also likely to be a ‘cliff-edge’ effect where someone who reaches their SPA the day before the implementation date could be awarded a pension some 40% less than someone who reaches SPA the day after. The position is not clear on those many thousands who have accrued rights to the state pension (S2P formerly SERPS) and would have qualified for a total pension in excess of the new rate under the old rules. Will they be limited to the new pension rate, will they still receive the higher rate and how, when and for how long will this be allowed? The impact of the effective ending of the ability to contract-out of S2P by salary-related occupational schemes in both the public and private sectors will be an issue for both employees and their employers. This will result in former reductions in NI rates being lost with a corresponding increase in NI payable. An employee on £25,000 a year could pay an extra £270 a year in NI with his/her employer facing an increase of £657 a year. This could cause friction in the public sector with many workers already having to pay extra for their public service pensions and could persuade more employers in the private sector to close down these type of gold plated but expensive schemes. It is likely that in future SPA will be pushed back more quickly to compensate for the increasing cost to the taxpayer of the state pension probably reaching 70 or beyond within the next 25 years. Existing pensioners and those who reach their state pension age (SPA) before the new scheme is introduced in 2017. They will be excluded from the new scheme and many have already expressed their resentment and what they see as being treated as ‘second-tier pensioners’. Expect a political backlash on this. By pushing the original start date from 2015 to 2017 there will be more people who will have reached their state pension age in the intervening period and will now not qualify for the new pension. There will also be a minimum NI qualifying period of 10 years which will mean that those with less than this will receive no pension. There is also likely to be a ‘cliff-edge’ effect where someone who reaches their SPA the day before the implementation date could be awarded a pension some 40% less than someone who reaches SPA the day after. The position is not clear on those many thousands who have accrued rights to the state pension (S2P formerly SERPS) and would have qualified for a total pension in excess of the new rate under the old rules. Will they be limited to the new pension rate, will they still receive the higher rate and how, when and for how long will this be allowed? The impact of the effective ending of the ability to contract-out of S2P by salary-related occupational schemes in both the public and private sectors will be an issue for both employees and their employers. This will result in former reductions in NI rates being lost with a corresponding increase in NI payable. An employee on £25,000 a year could pay an extra £270 a year in NI with his/her employer facing an increase of £657 a year. This could cause friction in the public sector with many workers already having to pay extra for their public service pensions and could persuade more employers in the private sector to close down these type of gold plated but expensive schemes. It is likely that in future SPA will be pushed back more quickly to compensate for the increasing cost to the taxpayer of the state pension probably reaching 70 or beyond within the next 25 years. Existing pensioners and those who reach their state pension age (SPA) before the new scheme is introduced in 2017. They will be excluded from the new scheme and many have already expressed their resentment and what they see as being treated as ‘second-tier pensioners’. Expect a political backlash on this. By pushing the original start date from 2015 to 2017 there will be more people who will have reached their state pension age in the intervening period and will now not qualify for the new pension. There will also be a minimum NI qualifying period of 10 years which will mean that those with less than this will receive no pension. There is also likely to be a ‘cliff-edge’ effect where someone who reaches their SPA the day before the implementation date could be awarded a pension some 40% less than someone who reaches SPA the day after. The position is not clear on those many thousands who have accrued rights to the state pension (S2P formerly SERPS) and would have qualified for a total pension in excess of the new rate under the old rules. Will they be limited to the new pension rate, will they still receive the higher rate and how, when and for how long will this be allowed? The impact of the effective ending of the ability to contract-out of S2P by salary-related occupational schemes in both the public and private sectors will be an issue for both employees and their employers. This will result in former reductions in NI rates being lost with a corresponding increase in NI payable. An employee on £25,000 a year could pay an extra £270 a year in NI with his/her employer facing an increase of £657 a year. This could cause friction in the public sector with many workers already having to pay extra for their public service pensions and could persuade more employers in the private sector to close down these type of gold plated but expensive schemes. It is likely that in future SPA will be pushed back more quickly to compensate for the increasing cost to the taxpayer of the state pension probably reaching 70 or beyond within the next 25 years. “The task of bringing together the various diverse components that currently collectively make up state pension provision was never going to be easy and it is inevitable that there will be some losers as well as winners in the process of change.” but you must except that £144 will be worth far less in 2017 than £107.45 is worth today. Especially given the fact that we are looking at another market crash in only a couple of months far worse than the previous 2008 crash which leading stock market players predict will cast a depression across the world for a minimum of 5yrs. Which is in line for when the current government are pushing through with their austerity measures. Info-warrior

10:40pm Tue 15 Jan 13

Info-warrior says...

Corrected long day.!

Who loses out then.? Existing pensioners and those who reach their state pension age (SPA) before the new scheme is introduced in 2017. They will be excluded from the new scheme and many have already expressed their resentment and what they see as being treated as ‘second-tier pensioners’. Expect a political backlash on this.
By pushing the original start date from 2015 to 2017 there will be more people who will have reached their state pension age in the intervening period and will now not qualify for the new pension. There will also be a minimum NI qualifying period of 10 years which will mean that those with less than this will receive (no pension). There is also likely to be a ‘cliff-edge’ effect where someone who reaches their SPA the day before the implementation date could be awarded a pension some 40% less than someone who reaches SPA the day after.
The position is not clear on those many thousands who have accrued rights to the state pension (S2P formerly SERPS) and would have qualified for a total pension in excess of the new rate under the old rules. Will they be limited to the new pension rate, will they still receive the higher rate and how, when and for how long will this be allowed?
The impact of the effective ending of the ability to contract-out of S2P by salary-related occupational schemes in both the public and private sectors will be an issue for both employees and their employers. This will result in former reductions in NI rates being lost with a corresponding increase in NI payable. An employee on £25,000 a year could pay an extra £270 a year in NI with his/her employer facing an increase of £657 a year. This could cause friction in the public sector with many workers already having to pay extra for their public service pensions and could persuade more employers in the private sector to close down these type of gold plated but expensive schemes.
It is likely that in future SPA will be pushed back more quickly to compensate for the increasing cost to the taxpayer of the state pension probably reaching 70 or beyond within the next 25 years.
Existing pensioners and those who reach their state pension age (SPA) before the new scheme is introduced in 2017. They will be excluded from the new scheme and many have already expressed their resentment and what they see as being treated as ‘second-tier pensioners’. Expect a political backlash on this.
By pushing the original start date from 2015 to 2017 there will be more people who will have reached their state pension age in the intervening period and will now not qualify for the new pension. There will also be a minimum NI qualifying period of 10 years which will mean that those with less than this will receive no pension. There is also likely to be a ‘cliff-edge’ effect where someone who reaches their SPA the day before the implementation date could be awarded a pension some 40% less than someone who reaches SPA the day after.
The position is not clear on those many thousands who have accrued rights to the state pension (S2P formerly SERPS) and would have qualified for a total pension in excess of the new rate under the old rules. Will they be limited to the new pension rate, will they still receive the higher rate and how, when and for how long will this be allowed?
Especially given the fact that we are looking at another market crash in only a couple of months far worse than the previous 2008 crash which leading stock market players predict will cast a depression across the world for a minimum of 5yrs. Which is in line for when the current government are pushing through with their austerity measures.

Am also not to sure how the kids of today are going to go on who left school in 2008.? According to the government we are looking at austerity untill at least 2019 so when or if ever jobs do come available the ones who have never worked through no fault of their own will have less time to get their ten years service in before they reach retirement age. I think..

I have confused myself now, so if your making any sense of this cr@p go on you.
Corrected long day.! Who loses out then.? Existing pensioners and those who reach their state pension age (SPA) before the new scheme is introduced in 2017. They will be excluded from the new scheme and many have already expressed their resentment and what they see as being treated as ‘second-tier pensioners’. Expect a political backlash on this. By pushing the original start date from 2015 to 2017 there will be more people who will have reached their state pension age in the intervening period and will now not qualify for the new pension. There will also be a minimum NI qualifying period of 10 years which will mean that those with less than this will receive (no pension). There is also likely to be a ‘cliff-edge’ effect where someone who reaches their SPA the day before the implementation date could be awarded a pension some 40% less than someone who reaches SPA the day after. The position is not clear on those many thousands who have accrued rights to the state pension (S2P formerly SERPS) and would have qualified for a total pension in excess of the new rate under the old rules. Will they be limited to the new pension rate, will they still receive the higher rate and how, when and for how long will this be allowed? The impact of the effective ending of the ability to contract-out of S2P by salary-related occupational schemes in both the public and private sectors will be an issue for both employees and their employers. This will result in former reductions in NI rates being lost with a corresponding increase in NI payable. An employee on £25,000 a year could pay an extra £270 a year in NI with his/her employer facing an increase of £657 a year. This could cause friction in the public sector with many workers already having to pay extra for their public service pensions and could persuade more employers in the private sector to close down these type of gold plated but expensive schemes. It is likely that in future SPA will be pushed back more quickly to compensate for the increasing cost to the taxpayer of the state pension probably reaching 70 or beyond within the next 25 years. Existing pensioners and those who reach their state pension age (SPA) before the new scheme is introduced in 2017. They will be excluded from the new scheme and many have already expressed their resentment and what they see as being treated as ‘second-tier pensioners’. Expect a political backlash on this. By pushing the original start date from 2015 to 2017 there will be more people who will have reached their state pension age in the intervening period and will now not qualify for the new pension. There will also be a minimum NI qualifying period of 10 years which will mean that those with less than this will receive no pension. There is also likely to be a ‘cliff-edge’ effect where someone who reaches their SPA the day before the implementation date could be awarded a pension some 40% less than someone who reaches SPA the day after. The position is not clear on those many thousands who have accrued rights to the state pension (S2P formerly SERPS) and would have qualified for a total pension in excess of the new rate under the old rules. Will they be limited to the new pension rate, will they still receive the higher rate and how, when and for how long will this be allowed? Especially given the fact that we are looking at another market crash in only a couple of months far worse than the previous 2008 crash which leading stock market players predict will cast a depression across the world for a minimum of 5yrs. Which is in line for when the current government are pushing through with their austerity measures. Am also not to sure how the kids of today are going to go on who left school in 2008.? According to the government we are looking at austerity untill at least 2019 so when or if ever jobs do come available the ones who have never worked through no fault of their own will have less time to get their ten years service in before they reach retirement age. I think.. I have confused myself now, so if your making any sense of this cr@p go on you. Info-warrior

11:56pm Wed 16 Jan 13

Major Tom says...

My my Infowarrior, that's almost a rant of even Alan Jones proportion. Best make sure Piers Morgan stays away from here, hey!! lol
My my Infowarrior, that's almost a rant of even Alan Jones proportion. Best make sure Piers Morgan stays away from here, hey!! lol Major Tom

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