Autumn Statement: State pension rise for 2012 Chancellor increases basic state pension by 5.2%
29 November 2011
George Osborne today confirmed that basic state pension would rise by 5.2% in 2012, from £102.15 to £107.45 per week. This is in line with CPI for September 2011.
Triple guarantee maintained
In his Autumn Statement, the Chancellor confirmed that basic state pension would rise in line with inflation (as measured by CPI for September 2011) in line with the government's 2010 'triple guarantee'. This calls for an increase in line with the highest of three measures- inflation, earnings or 2.5%. As CPI in September 2011 was 5.2%, this is the amount that basic state pension will rise next year- by £5.30, to £107.45. The married couple's pension, will rise from £163.35 to £171.85. Couples who are both entitled to full state pension will receive £214.90 between them.
Since 2010, to gain entitlement to full state pension, you need to have been credited with 30 years of National Insurance Contributions. Before 2010 you required more contributions to get a full entitlement, 39 years for women and 44 years for men.
Minimum income guarantee to rise by 3.9%
Those with no other source of income besides state pension are entitled to pension credit to bring their income up to the minimum income guarantee. For 2012 this will rise to £142.70 per week, a 3.9% increase from the current rate of £137.35.
State pension age to rise to 67
Mr Osborne confirmed that state pension age will rise to 67 'between April 2026 and April 2028'. It will rise to 66 for both men and women by October 2020.