New state pension due in April 2016

THE NEW simplified state pension will be introduced a year ahead of schedule in April 2016, the government confirmed yesterday.

The decision to implement the £144-a-week flat payment earlier than planned will mean the government has to provide fewer national insurance rebates on contracted-out pensions, boosting Treasury coffers by around £5.5bn.

It will also ensure thousands of women born between April and July 1953 who were due to miss out on the new system will now benefit from the reform.

Pensions minister Steve Webb said: “The new state pension will be fairer to the low-paid, the self-employed and carers and make it easier for people to understand what they will get from the state when they reach state pension age.”