This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8409023.stm
The article has changed 9 times. There is an RSS feed of changes available.
| Version 5 | Version 6 |
|---|---|
| Pension rise limit may save £350m | Pension rise limit may save £350m |
| (about 1 hour later) | |
| 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. |
| The Chancellor said the "basic state pension" would rise by 2.5% in April. | The Chancellor said the "basic state pension" would rise by 2.5% in April. |
| But pensions minister Angela Eagle says extras such as the State Earnings Related Pension (Serps) will be frozen. | But pensions minister Angela Eagle says extras such as the State Earnings Related Pension (Serps) will be frozen. |
| She says this will prevent "unfairness" between Serps and company pension schemes. But a BBC report says other pension benefits will be frozen too. | She says this will prevent "unfairness" between Serps and company pension schemes. But a BBC report says other pension benefits will be frozen too. |
| 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 |
| Following the revelation by the BBC's Money Box programme, a Department of Work and Pensions (DWP) spokeswoman told the BBC a statement outlining the break-down of pension benefit increases and freezes would be issued on Monday. | Following the revelation by the BBC's Money Box programme, a Department of Work and Pensions (DWP) spokeswoman told the BBC a statement outlining the break-down of pension benefit increases and freezes would be issued on Monday. |
| Chancellor 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". | Chancellor 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 DWP 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 DWP 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. |
| 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. |
| 'Confusion and unfairness' | |
| 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. |
| The pensions minister said the decision to freeze extras, such as Serps, was taken because otherwise it would have "created an unlevel playing field between the public and the private sector". | |
| She said there would have been "confusion and unfairness" because Serps affect company pension payments and there may have been a difference of approach between public sector pensions and occupational ones partly related to some firms freezing pensions. | |
| 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%. |
| The fact that the chancellor never made this clear in his pre-budget statement looks underhand and shabby Dot GibsonNational Pensioners Convention | The fact that the chancellor never made this clear in his pre-budget statement looks underhand and shabby Dot GibsonNational Pensioners Convention |
| "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." |
| The alleged arrangements were also condemned by National Pensioners Convention general secretary, Dot Gibson. | The alleged arrangements were also condemned by National Pensioners Convention general secretary, Dot Gibson. |
| "Pensioners will be absolutely stunned that only part of their state pension is going to rise next year. This is unprecedented and the fact that the chancellor never made this clear in his pre-budget statement looks underhand and shabby," she said. | "Pensioners will be absolutely stunned that only part of their state pension is going to rise next year. This is unprecedented and the fact that the chancellor never made this clear in his pre-budget statement looks underhand and shabby," she said. |
| "Over 2.5 million older people already live in poverty and millions more are struggling to meet the rising costs of living. This decision will certainly push more into financial hardship." | "Over 2.5 million older people already live in poverty and millions more are struggling to meet the rising costs of living. This decision will certainly push more into financial hardship." |
| 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. |
| 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. |