Starting in April 2001 the basic State pension will rise by £5 for single people and £8 for married ...
Starting in April 2001 the basic State pension will rise by £5 for single people and £8 for married couples.
That represents an increase of 7.4% resulting in a single person weekly payment of £72.50 and married couple weekly payment of £115.90.
Announced in the pre-Budget report during the first week of November, the Government has not moved to re-establish the link between the basic state pension and earnings inflation. However, starting on 6 April 2002, there is to be a further £3 in State benefits a week for single people and £4.80 for married couples.
This is an increase of 4.1% taking the amounts payable to £75.50 for the single person and £120.70 for married couples.
The Government has also committed to upgrading the Minimum Income guarantee (MIG) in line with earnings inflation for the duration of the next Parliament.
From 6 April the MIG will increase for the single person from £78.45 to £92.15 and from £121.95 to £140.55 for married couples.
The savings threshold below which the full MIG is payable will double to £6,000 and the savings level for which pensioners will no longer qualify for any assistance will increase from £8,000 to £12,000.
The Government expects the 2003 level of MIG to be at least £100 for a single person and £154 for couples.
However, to make saving more attractive to low or moderate earners who are unlikely to save enough to significantly surpass the State pension on retirement the Government is to introduce a new Pension Credit from 2003.
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