There will be fundamental basic changes to the UK Pension Payments from the year 2016. The new system will simplify matter relating to State Pension Payments. Simplification does not mean that you will automatically be a winner!
The current payments system will stay in force until then.
In 2016, there will be the introduction of a single tier flat rate for all pensioners who are qualified to receive State Pension. This single flat rate pension will be worth £144.00 per week for each person. This is calculated at today's money. In year 2016 with cost of living rises etc. it is expected to be somewhere between £150.00 and £160.00 per week. This is totally dependent upon rises in cost of living
Nothing is simple in the world of State Pension Payments, so as you would expect, there will be both winners and losers when the new flat rate pension comes into force..The maximum flat rate pension will be for everyone in Britain who has spent at least 35 years working and paying NI, or who has been unable to work because of caring for children or caring the elderly has taken place of normal work. It will undoubtedly be a simpler system than the present 2 tier system. But, there will still be the clauses that cause so much hassle - relating to if you have qualified for the FULL basic Sate Pension, or whether you are precluded because of insufficient NI payments.
We will update this page as and when the full details emerge, rather than simply speculating on what may, or may not happen.
Contains Public Sector Information under the Open Government Licence v3.0.