The UK's new single-tier state pension will be introduced in 2016 instead of 2017, the Government has announced.

By starting a year earlier, around 400,000 more people will reach state pension age under single-tier, including women who are affected by the acceleration of the equalisation of the state pension age, the Government said.

Ministers also decided that the reforms can be delivered in 2016.
"Our reforms will create a simple, decent state pension, which is set above the basic means test sooner. The new state pension will be fairer to the low-paid, the self-employed and carers and make it easier for people to understand what they will get from the State when they reach state pension age," said minister for pensions Steve Webb.

He continued: "By introducing single tier in 2016, every woman affected by the changes we have made to the state pension age in this parliament will also now have access to the new state pension."

The single tier pension will remain the same as when outlined in the White Paper, and it will work alongside the rollout of automatic enrolment into workplace pensions to encourage more people to save for their retirement.

First published 19.03.2013

monique_simpson@wilmington.co.uk