The basic state pension is to rise by around double the rate of inflation, the government has confirmed.

It will rise by 2.5% in April, the equivalent of GBP 2.85 more a week for a single person, who would now receive GBP 115.95 per week.

The increase is in line with the government's "triple-lock" commitment to raise the state pension in line with the highest of average earnings, prices, or 2.5%.

In addition, around 900,000 of the poorest pensioners will benefit from a further boost as a result of the government's decision to pass through the cash rise in the basic state pension to the standard minimum guarantee in pension credit.

This measure will help pensioners on lower incomes by pushing the guarantee up to GBP 151.20 for single people from April 2015.

Pensions Minister Steve Webb said: "The triple-lock is one of the defining policies of this government – a policy which rewards those who have worked hard and saved hard throughout their lives."

"With inflation remaining low by historic standards and the rise in average earnings at around 0.6%, under previous arrangements the basic state pension may only have gone up by around 70p per week this year – the kind of insulting treatment of pensioners which we won't allow to happen."

Pensions experts, however, warned that private pensions are still essential for savers to consider.

Morten Nilsson, CEO of NOW: Pensions, said: "Any increase in the state pension is always good news, but savers shouldn't be lulled into a false sense of security.

"Research we recently conducted with 100 cross-party MPs revealed nearly one in six think the state pension will be extinct in 30 years' time or if there is one, it will be at a considerably lower level.

"Young savers in particular need to take control of their own pension saving and put money aside on a regular basis as early in their working life as they can to guard against an uncertain future.

"Automatic enrolment into workplace pension schemes will go a long way to helping young people get into the savings habit but contributions need to rise beyond current levels to give future generations a better chance of an adequate retirement income."

First published 05.12.2014

Lindsay.sharman@wilmington