Pension reform

Sweeping changes to state pensions will be announced later today.

In a speech to Age UK, the work and pensions secretary Iain Duncan Smith will outline plans to introduce a flat-rate state pension of over £140 per week.

Under current rules, the weekly flat-rate is £97.65, which can then be boosted by up to £132 through means-tested add-ons for the poorest OAPs.

Mr Duncan Smith will call for a pension system in line with welfare reform, encouraging people to save more.

The new scheme will scrap means-testing and provide the same rate for men and women.

The government says this is a boost for women who currently receive a lower state pension if they took time out to raise children.