6 December 2005 - £360 Million Above Inflation To Be
Spent For The Benefit Of Every Pensioner
£360 million above inflation will be spent on Britain’s pensioners next year announced Minister for Pensions Reform Stephen Timms, as he gave details of the annual increase in pensions and benefits for the next financial year.
The basic state pension will be increased in line with the Retail Price Index by 2.7% from £82.05 to £84.25. The Pension Credit guarantee element will increase in line with earnings meaning that no pensioner should live on less than £114.05 from next April. Mr Timms also reiterated the Government’s commitment to keep the £200 Winter Fuel Payment for the duration of this parliament with over 80s continuing to receive an additional £100.
Mr Timms said:
“We will be spending over £2.5 billion for the benefit of each and every pensioner throughout the country. This will also help prevent pensioners falling back into poverty ensuring that no pensioner need live on less than £114 a week.
“Neither will pensioners have to worry about whether or not they choose to heat their homes in the winter with our commitment to pay the Winter Fuel Payment at the current rate of £200 with a further £100 for those over 80.”
For couples, the Basic State Pension will go up to £134.75 and the Pension Credit guarantee element will increase to £174.05.
The changes in pensions and benefits will come into force from April 2006.
Notes to editors:
- Most contributory and non-contributory benefits will rise by the RPI increase of 2.7%. Most income related benefits will rise by the ROSSI index increase of 2.2%.
For further media enquiries please contact Stewart Todd on 020 7238 0643
Press office: 020 7238 0866
Out of hours: 07659 108883
Public enquiries: 020 7712 2171
Textphone: 020 7238 0788
Website: www.dwp.gov.uk/