It has been announced that the new Single-Tier State Pension will start, subject to Parliamentary approval, April 2016.
The original proposals for the new system were outlined in a White Paper published January 2013. At present the changes are speculative and will need to be agreed by Parliament. However, readers may be interested to read the following notes that summary some of the provisions set out in the White Paper.
• Persons reaching the State Pension Age after the proposed single-tier scheme starts will receive the new flat rate payment. This was set at £144 per week in the White Paper.
• The single–tier pension will be increased each year by at least the percentage average earnings have increased in the previous year.
• If you are already over the State Pension age when the new scheme starts 6 April 2016 you will continue to receive your State Pension in accordance with the existing rules.
The new pension will be fairer to the lower paid, the self-employed and carers, as all persons reaching the State Pension Age after 6 April 2016 will receive the same amount.