The Conservative-led Government have delivered the biggest ever rise in the basic state pension, are simplifying the state pension, and introducing auto-enrolment pension schemes in the workplace.
The Conservative-led Government are reforming pensions to replace Labour’s complex pension system. Conservatives in Government want to ensure that the system is simple and easy to understand. They also want to see that women are fully recognised for years spent bringing up a family.
- A single tier state pension: A new single, flat-rate state pension, set above the current basic level of £142.70 per week, that will benefit women, low earners and the self employed.
- A triple lock to protect the basic state pension: The state pension will now always rise in line with inflation, earnings or 2.5 per cent – whichever is the higher. Last year, the Government increased the state pension by £5.30 a week, the biggest ever increase. This year the pension will increase by 2.5 per cent, higher than inflation and earnings.
- Introducing automatic enrolment: Automatic enrolment will see people being included in their workplace pension scheme without having to do anything, unless they choose to opt out – this will get up to 9 million more people saving for their pension