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Pension rise limit may save £350m | Pension rise limit may save £350m |
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The pre-Budget report pledge to raise the state pension will not apply to some parts of the pension - potentially saving the Treasury £350m in 2010/11. | The pre-Budget report pledge to raise the state pension will not apply to some parts of the pension - potentially saving the Treasury £350m in 2010/11. |
On Wednesday, Chancellor Alistair Darling said the "basic state pension" would rise by 2.5% in April. | On Wednesday, Chancellor Alistair Darling said the "basic state pension" would rise by 2.5% in April. |
The pensions minister now says the rise will not apply to extras such as the state earnings related pension (Serps). | The pensions minister now says the rise will not apply to extras such as the state earnings related pension (Serps). |
Angela Eagle says the move will prevent "confusion and unfairness" because Serps affects company pension payments. | Angela Eagle says the move will prevent "confusion and unfairness" because Serps affects company pension payments. |
Most people don't think of their pension being in bits and when the chancellor says it will rise by 2.5% they expect it all to go up by 2.5% Steve WebbLib Dem Work and Pensions spokesman | Most people don't think of their pension being in bits and when the chancellor says it will rise by 2.5% they expect it all to go up by 2.5% Steve WebbLib Dem Work and Pensions spokesman |
But the BBC's Money Box programme has learned that the freeze will extend to other parts of the state pension which do not affect company payments at all. | But the BBC's Money Box programme has learned that the freeze will extend to other parts of the state pension which do not affect company payments at all. |
Alistair Darling gave his pledge in Wednesday's Pre-Budget report that "basic state pension will not be frozen, but will rise by 2.5% in April". | Alistair Darling gave his pledge in Wednesday's Pre-Budget report that "basic state pension will not be frozen, but will rise by 2.5% in April". |
Nowhere did his speech or the hundreds of pages of pre-Budget documents mention the fact that the parts of the state pension which do not count as "basic" would be frozen. | Nowhere did his speech or the hundreds of pages of pre-Budget documents mention the fact that the parts of the state pension which do not count as "basic" would be frozen. |
The Department for Work and Pensions has confirmed that the small earnings-related supplement called graduated pension, which is paid to more than 10 million people, will also be kept at this year's level. | The Department for Work and Pensions has confirmed that the small earnings-related supplement called graduated pension, which is paid to more than 10 million people, will also be kept at this year's level. |
'Shaving corners' | 'Shaving corners' |
And the BBC understands that the additional pension of £57.05 paid to 41,000 men who have wives under 60 will not rise either. | And the BBC understands that the additional pension of £57.05 paid to 41,000 men who have wives under 60 will not rise either. |
Also under threat is the increase in the extra pension of £7 a week paid to 1.2 million over 60s who have delayed their retirement. That could also be included in the freeze policy when details are revealed on Monday. | Also under threat is the increase in the extra pension of £7 a week paid to 1.2 million over 60s who have delayed their retirement. That could also be included in the freeze policy when details are revealed on Monday. |
Liberal Democrat work and pensions spokesman Steve Webb said: "Once again things are not what they seem. | Liberal Democrat work and pensions spokesman Steve Webb said: "Once again things are not what they seem. |
"Most people don't think of their pension being in bits and when the chancellor says it will rise by 2.5% they expect it all to go up by 2.5%. | "Most people don't think of their pension being in bits and when the chancellor says it will rise by 2.5% they expect it all to go up by 2.5%. |
"Britain's pensioners will lose money because the government is shaving off corners where it hopes people won't notice. It's all about getting the maximum good publicity for the minimum spend." | "Britain's pensioners will lose money because the government is shaving off corners where it hopes people won't notice. It's all about getting the maximum good publicity for the minimum spend." |
No other benefits are expected to be frozen in April. The chancellor has already announced that Child Benefit and some disability allowances will rise by 1.5% in April despite the fact that the Retail Prices Index showed inflation below zero in September when the annual rise in benefits is fixed. | No other benefits are expected to be frozen in April. The chancellor has already announced that Child Benefit and some disability allowances will rise by 1.5% in April despite the fact that the Retail Prices Index showed inflation below zero in September when the annual rise in benefits is fixed. |
Have you been affected by the pension changes? | Have you been affected by the pension changes? |
Send us your views | Send us your views |
COMMENTS FORM | COMMENTS FORM |
The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions | The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions |
The comments we publish are not necessarily the views of the BBC but will reflect the balance of views we have received. It is helpful if contributors state if they work for any organisation relevant to an issue discussed. Readers should form their own views on whether messages published represent undeclared interests, or views prompted by a common source. | The comments we publish are not necessarily the views of the BBC but will reflect the balance of views we have received. It is helpful if contributors state if they work for any organisation relevant to an issue discussed. Readers should form their own views on whether messages published represent undeclared interests, or views prompted by a common source. |
Occasionally Money Box or Inside Money may wish to contact Have Your Say contributors about future programmes. If you find this acceptable we ask you to include your e-mail address. | Occasionally Money Box or Inside Money may wish to contact Have Your Say contributors about future programmes. If you find this acceptable we ask you to include your e-mail address. |
BBC Radio 4's Money Box is broadcast on Saturdays at 1200 GMT, and repeated on Sundays at 2100 GMT. Download the podcast. | BBC Radio 4's Money Box is broadcast on Saturdays at 1200 GMT, and repeated on Sundays at 2100 GMT. Download the podcast. |