Pension reform

Pensions are set for a radical overhaul as the government unveils plans to introduce a £155 universal flat-rate state pension.

The government green paper will be published later today and is expected to outline a flat-rate pension of £140, expected to reach £155 with inflation by its introduction in 2015/16.

It would replace more complicated means-tested procedures, which the government argues are unduly complex.

OAPs currently receive a minimum of £97.65 a week, but can see their payments topped up to £132.60 a week.

The moves to simplify the system are in keeping with the government's overall approach to state benefits, which are being streamlined into a universal credit system.

The retirement age is also set to rise to 66 for both men and women as an adjustment to rising life expectancy.