Chancellor George Osborne has announced he will bring forward the introduction of the single-tier state pension to 2016, one year earlier than originally planned, as the government fights to regain the initiative after a week of damaging data releases showing the UK’s economic frailty.
Speaking to Jeremy Vine on the BBC’s Andrew Marr Show, Mr Osborne said he would also bring forward the new £72,000 cap on care costs to the same year.
Mr Osborne confirmed in his Budget last year that the coalition government will introduce a flat-rate pension of £144 a week from 2017. However, this date has now been brought forward by a year.
Mr Osborne said: “That’s a generous pension to pensioners, it’s a huge boost for people who want to save for their retirement.”
Pensions minister Steve Webb came under fire this month when it emerged that almost 430,000 women could be left worse off under the proposed system.
The government - and Mr Osborne in particular - have come under fire in the last week after data on production activity in January pointed to a potential ‘triple-dip’ for the UK.
Office for National Statistics figures showed manufacturing declined 1.5 per cent during the first month of 2013, contributing heavily to a 1.2 per cent decrease in overall production.
If this were replicated in February and March, it would be almost certain to force the economy into overall negative territory for the second consecutive quarter in Q1.