State pension increase in effect

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A rise in the basic state pension of just over £3 to £87.30 a week has come into effect.

The pension is raised in line with inflation, although the government has said it will reinstate the link with earnings in the next Parliament.

Pension credit guarantees are also increasing, by £5 a week for a single person and £7.65 for a couple.

The charity Age Concern has urged greater efforts to ensure older people are aware of their entitlements.

Ministers say the combination of higher pensions and pension credit guarantees means Britain's poorest single pensioners will see their income rise to £119.05 a week, while married couples will be entitled to £181.70.

But Age Concern's director general Gordon Lishman says too many older people are not aware of the extra benefits they can claim.

"Rocketing household bills over the past few years have put a major strain on the finances of many pensioners, yet up to £4.2 billion in money benefits is left unclaimed by older people every year.

"It is really worrying that some of the poorest and most excluded older people are missing out on money that is rightfully theirs because they don't know that they are entitled, are worried about the complexity of the process or are embarrassed about claiming," he added.