Britain plans flat-rate pension of £140
Published 08/03/2011 | 05:00
BRITISH pensioners are to receive a flat-rate universal retirement payment of around £140 (€162) a week under "radical" reforms to be signalled by Iain Duncan Smith today.
Promising long-term changes to sweep away the current host of complex rules, the Work and Pensions Secretary will pledge to "fundamentally simplify" the basic state pension.
Insiders say Mr Duncan Smith's intervention represents the start of a drive to replace the existing state pension regime with a "single-tier" retirement payment.
A flat-rate pension would end an injustice in the current system that denies many women a full state pension because they take time out of work to raise children. Charities welcomed the signal of a universal pension, saying it would "reduce fear for those approaching retirement".
In a speech to charity leaders and pension experts, Mr Duncan Smith will today condemn the current pension system as a bureaucratic mess.
His long-term ambition is to replace it with a single payment. (© Daily Telegraph, London)