Call: 0800 011 3797

Call: 0800 011 3797


Simplifying The State Pension

The Department for Work and Pensions today confirmed that a White Paper setting out details of state pension reform will be issued later this year. 

The current state pension is made up of the basic state pension and various additional state pension entitlements.   

It will be replaced by a simple flat-rate state pension for new pensioners set above the level of the means test, currently estimated at around £140 a week.

The amount of state pension money paid out to pensioners can differ by more than £200 a week - that's a difference of £10,000 a year This is because the level of basic and additional state pension payouts can vary so much in the current system.

According to the latest DWP administrative data, state pension income varies from around £7 a week to £230 a week.  Around 130,000 people get £7 or less a week and the same number of people get £230 or more a week.

State pension regulations have multiplied so much over recent decades and made the system so complex that people have no way of working out what they will get a week, and can't budget properly for their needs.

Pensions Minister Steve Webb said:

“The range of state pension payouts at the moment is simply staggering. The current system is so complex it would baffle even Einstein. Worse, if people have no idea what they will get, they can't make sure they have enough savings for their retirement.

“We can't go on playing roulette with pensions. A flat-rate single-tier state pension will restore simplicity and give people certainty instead of chance.  And it will provide a sure foundation for further saving.”

We never contact our customers out of the blue

We're all ears

How do you feel about the help you just received?

We would really appreciate a few minutes of your time.
Your feedback helps us create a better experience for you.

Your details Hi there, start a chat with online support now
These sessions are recorded for training and quality monitoring purposes. You will also have the opportunity to download a transcript of the the conversation for your records upon connection

Please do not refresh your browser during this chat session. This will cause your session to end.
    Click here to download the chat transcript
    Webchat is not working properly. Sorry for the inconvenience.